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Cyber-attacks are a serious business. In an increasingly connected world, cybercriminals have become adept at breaking into systems and stealing sensitive data. In many instances, they hold the information hostage and demand high ransoms for its return. These thefts are lucrative for the criminals but devastating for your clients, especially if they do not have cyber liability insurance. When companies experience a data breach, they frequently face fines or settlements because of their inability to protect customer information.
Here are some of the largest fines and settlements to date that resulted from cyber-attacks.
Equifax Settles for at Least $575 Million
Equifax failed to install a patch that would fix a system vulnerability for months after that patch was issued. Cybercriminals took advantage of the opening and stole the data for 150 million consumers. To make matters worse, the company did not inform these people that their information had been compromised. Their failure to protect consumers resulted in a 575 million dollar settlement with all 50 states and territories, the Federal Trade Commission, and the Consumer Financial Protection Bureau.
Home Depot Pays $200 Million
The point-of-sale systems in retail stores are at risk of a cyber-attack. Target experienced a well-known breach in 2013 that resulted in an $18.5-million settlement. Just one year later, Home Depot fell victim to a data breach that far surpassed Target’s, costing them a total of $200 million in payments to banks and financial institutions, customers, credit card companies, and all 50 states and the District of Columbia.
Uber Incurs $148 Million in Fines
Cybercriminals broke into this company’s systems in 2016, stealing information from thousands of drivers and millions of passengers. Rather than report the incident, Uber chose to pay off the perpetrator. In the end, authorities discovered the hack, and the company had to pay a hefty $148 million in fines for failure to adhere to reporting laws.
Yahoo Loses $85 Million
Cybercriminals breached this internet giant’s entire database in 2013, affecting approximately three billion accounts. At the time, this was almost the entire population of web users. The company chose to keep silent about the breach for three years, which proved to be a costly mistake. In 2018, the Securities and Exchange Commission hit Yahoo with privacy-related fines of $85 million for its failure to report the incident.
Cyber Liability Insurance Protects Companies
In 2020, there were 1001 data breaches, and nearly 156 million records were exposed. Your clients can’t afford to be without cyber liability insurance. Both large and small companies are at risk. While some of the corporations identified here were at fault for failing to respond appropriately, any breach can result in significant financial damage and reputational harm.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.