You’re not just left relying on LifeLock when it comes to protecting yourself from hackers these days. Now American International Group Inc (AIG) is partnering with insurers who offer products aimed at providing consumer safeguards against cyber criminals intent on filching personal data.
AIG is now rolling out a product which offers coverage against expenses accrued in the fight against online threats like extortion and even online bullying.
They call it “Family CyberEdge,” and the coverage includes protections which include legal services and public relations fees. The company says the plans even extend to in-home assessments of a family’s full array of electronic devices.
Jerry Hourihan, the President of AIG Private Client Group, says as wealthy or high-profile individuals become targets for cyber-criminals, it’s often social media channels and online financial tools which make them vulnerable to sophisticated attacks.
“They are more exposed than they ever have been,” Hourihan says.
As consumers find themselves sharing personal data via websites and apps from photos to other sensitive information on cloud platforms, hacking attacks are ramping up as well. Invasions of systems offered by Yahoo Inc, Apple and the U.S. government have recently fallen prey to large-scale data thefts, and as privacy protections are relaxed by Congressional action, Hourihan says consumer data will become increasingly more at risk.
The FBI says the proliferation of attacks like ‘ransomware’ intrusions has opened individuals, hospitals, school districts, governments and law enforcement agencies and businesses up to malware that encrypts or locks digital files seeking ransom payments to reverse the damage they cause. As important data intrusions cause catastrophic results, such as the attack on the BART train system last year in San Francisco, the financial losses rolled up to restore systems and files can run into many thousands of dollars.
According the FBI, ransomware attacks are spreading fast – and becoming more sophisticated. The FBI says they don’t support paying any ransom. Their experts say paying the ransom demands “not only emboldens current cyber criminals to target more organizations, it also offers an incentive for other criminals to get involved in this type of illegal activity.”
Instead, the FBI recommends that organizations focus on prevention efforts like employee awareness training and robust technical prevention controls backed up by the creation of “a solid business continuity plan in the event of a ransomware attack.”
J. Robert Hunter, the director of insurance for the Consumer Federation of America, says companies are quick to respond with product offerings as news regarding high-profile cybercrimes percolates through the internet and on social media.
AIG’s Hourihan said this latest offering from his company was a result of customer requests. The AIG unit Hourihan runs caters to wealthy individuals. In the past, the unit has offered coverage to individuals for losses to their wine and fine art collections. He says such policies can add anywhere from 10 to 15 percent to the cost of a homeowner’s premium. The policies often cover the restoration of lost data and monitoring cyber threats.
