Can insurers protect the U.S. from cyberattack?
Posted in: Legal, Privacy & Security at 11/02/2010 22:01
The newest soldier on the frontlines of America's cyber defenses could be an insurance salesman. To prepare American companies for the costly fallout of hacks, as recently experienced by Google's operations in China, a market for cyber insurance has been taking root and is extending coverage to keep companies and customers safe in cyberspace.
Hackers often stay undetected by the companies they target because corporate budgets didn't prioritize online security. A study conducted by Verizon between 2004 and 2008 determined that 75 percent of breaches were not discovered by the victimized organization, and that 87 percent could have been prevented with reasonable online protection.