Another data breach has been reported. This time Capital One Financial Corp., the United States’ third-largest credit card lender, fell victim to cyber theft. Capital One once boasted its use of cloud services, declaring that it is not only cheaper, but it allows for quicker digital advancements. Other industry leaders are quick to discourage the use of storing sensitive data in clouds due to the risk.
Capital One reported that about 100 million people were affected by the breach of information stored on Amazon Web Services servers. Some of the personal information that was taken include names, addresses, and birthdates. Other financial information included credit scores and personal income. A former Amazon Web Services employee was arrested in connection to the data breach.
Cost of the breach are expected to reach $150 million, mostly due to credit monitoring and legal fees. Capital One does have a $400 million cyber-risk insurance policy with a $10 million deductible.
Protecting personal information is not a worry that is taken into consideration very often. Most people automatically trust that their information is in good hands. That trust is tested when there is a security breach. One of the most notable breaches was the Equifax breach. There are more than 70 class action lawsuits against Equifax due to identity theft and theft of personal information. Victims are experiencing opened accounts and credit disruption in their name without their knowledge or consent. Some people have reported more than 15 cases of identity theft due to the hacking of Equifax’s databases.
When information is left at risk for identity theft, it can result in a series of problems in the victim’s name including the opening of bank accounts, credit cards, and lines of credits. They can even attribute speeding tickets to a person. The thief can also steal tax refunds and social security checks. The long term effect is devastating, and the process to reverse the theft is long and grueling.
Organizations are trusted with personal information on a daily basis. Are you protected in case of a data breach? Our insurance programs protect you and your business in the event that personal information has been exposed to cyber theft. Contact us today to learn more about a Cyber Liability policy.