Emerging Cyber Exposures

Jun 29, 2020 / by Linda Jancik

As today’s families fall asleep at night, they rest assured that they are protected from home perils. When thinking about keeping our homes safe, many think of the standard home perils: fire, floods, and burglary. However, as we delve further into the age of technology, many people forget that their homes are susceptible to more than physical perils. Danger can lurk within their phones, computers, and other IoT devices.

Cybercrimes occur every three minutes, more frequently than many believe. According to CyberScout, the three most common threats to computer data are malicious software, network intrusion, and physical theft. A common tactic used to gain access is phishing– using fake or cloned emails to plant viruses. With malicious intent, families can fall victim to seven major cybercrimes: extortion threats, ransomware, social engineering, cyberbullying, identity theft, system compromise, breach monitoring, and internet cleanup.

Cybercrimes may not be the physical perils covered in homeowner’s insurance, but they are more than capable of making a family’s life crumble, in ways maintenance specialists can’t fix.

Cybercriminals can hold your data for ransom (ransomware, extortion threats), steal identities and money (social engineering, identity theft), verbally attack or libel someone (cyberbullying, internet cleanup), and damage systems (system compromise, breach monitoring).

Family Cyber Protection Solution
In May of 2020, AAIS and Berkley Re Solutions announced the Family Cyber Protection Solution, a proactive approach to the seven devastating cybercrimes. Like all AAIS plans, the Family Cyber Protection plan is flexible, allowing Member carriers to customize their program. The solution also provides Member carriers with educational materials about Identity theft, marketing support, underwriting training, claims trainings and consultations, and access to Reinsurance via Berkley Re solutions. The coverages in the solution are built to address every cyber risk's unique needs because while following the same format, the same cybercrime can look different in every case.

Cyberbullying has become quite common in recent years. While not as common as ‘standard’ bullying, cyberbullying can quickly become nasty. The anonymity of the internet is weaponized by cyberbullies, allowing them to say things to others that they would never say in person. Cyberbullying occurs every day, with children experiencing constant taunts and abuse through the devices in the palms of their hands. Like other forms of bullying, cyberbullying is detrimental to the mental health and safety of victims. In cases like these, resources are essential.

With the AAIS Family Cyber Protection Solution, families of cyberbullying victims are provided access to much-needed resources such as counseling. The coverage can also provide financial assistance in the scenario that a child needs to switch schools.

Social Engineering
Social media is a hub for social engineering, a prime example of such being ‘catfishing.’ A ‘catfish’ is a person who uses a fake online persona to scam people out of money. Catfishing has become a popular topic, with reality shows centered around catching catfish and many movies and tv shows addressing it. You’ve likely heard of a case of catfishing. For example, a person may be in an online relationship with a catfish. The catfish abuses this relationship and often convinces their victim to send them- the person they love- money. In some cases, victims have lost hundreds of thousands of dollars.
With the AAIS Family Cyber Protection Solution, the money lost by victims of social engineering is covered, in some cases.

The AAIS Family, Cyber Protection Solution, is bringing proactive protection to families, helping them to protect their homes on the inside and out.

Tags: Personal Lines, Community, Issues & Trends, Data & Technology, IoT, Homeowners, Cyber, New/Emerging Risks, Underwriting, Berkley Re, AAIS Views, AAIS Family Cyber Protection Program

Linda Jancik

Written by Linda Jancik

Linda is AAIS’s Personal Lines Product Manager, responsible for product development, deployment and management for AAIS’s Personal Lines suite, including Dwelling Properties, Cyber, Flood, Florida Homeowners By-Peril and Homeowners coverages. Linda has more than 30 years of Personal Lines experience in Underwriting, Product Management, Sales and Business Operations, as well as Communications. Linda has a Bachelors degree from Utah State University.

Cybercrimes occur every three minutes, more frequently than many believe. According to CyberScout, the three most common threats to computer data are malicious software, network intrusion, and physical theft.

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