Experts say cyber attacks likely to escalate this year;

Sihle advises firms hosting personal data to get protection

As the threat of cyber attacks grows, Sihle Insurance Group warns that companies need to be increasingly vigilant about protecting themselves financially -- especially since many states and federal legislation require some companies to take specific steps to identify and ward off cyber attacks.

Cyber attacks are one of the top five global risks likely to impact the planet over the coming year, according to the latest annual report from the World Economic Forum (WEF). The international organization interviewed more than 460 experts from industry, government, academia and civil society to compile its seventh Global Risks report.

            For instance, Florida statutes provide for fines of $1,000 for each day the breach goes undisclosed, for up to 30 days, and thereafter, $50,000 for each 30 day period up to 180 days. The total fine can reach $500,000.

            "Also, there can be civil liabilities if suits are filed for personal damages due to fraud or identity theft that result from data breaches," commented Ken Sihle, president of Orlando-based Sihle Insurance Group (www.sihle.com)  "It's smart business to assess your risk and invest in insurance protection against losses resulting from breaches of data you manage."

            The federal Red Flags Rule (an amendment to the Fair Credit Reporting Act) requires "financial institutions" and "creditors" that hold consumer accounts -- or any other account for which there is a reasonably foreseeable risk of identity theft -- to develop and implement an Identity Theft Prevention Program for new and existing accounts.

The average cost per data breach last year was $214, up from $204 a year before. Multiply that times the number of personal records you keep for customers, and you can calculate your risk, says Sihle.  

Businesses can go to www.databreachcalculator.com to learn more about their exposure. Since 2005, there have been 542.6 million personal records breached, stolen or hacked. It's clearly big business.

The average cost of losses due to identity theft and fraud from a data breach incident to an organization was a staggering $7.2 million in 2010 — up from $6.8 million in 2009, according to the U.S. Cost of a Data Breach Study. The sixth annual study was conducted by the Ponemon Institute and sponsored by Symantec Corp.

Sihle Insurance Group offers a variety of insurance products that help companies manage the risk of a data breach and compensate for losses in the event of a breach and related lawsuits.

Most traditional insurance plans are limited to a company’s physical assets, but network security and privacy liability insurance can help companies protect their intangible assets and cope with the legal costs associated with a data breach.

ABOUT SIHLE INSURANCE GROUP

With revenue from property/casualty premiums of $151 million last year, Sihle ranked No. 70 in Insurance Journal’s Top 100 Private/Independent Agencies, and is consistently in the Top 100 over the years. The company now has 140 employees.

            Founded by Gerald Sihle in 1974, Sihle Insurance Group offers a comprehensive array of commercial, business, homeowner, personal, employee benefits, bonds, payroll services and specialty lines of insurance. Sihle is headquartered in Altamonte Springs, with sales and service offices in Deland, Fort Myers, Jacksonville, Lakeland, Pensacola, Tampa Bay and Vero Beach.