Corporate Insurance Blog

My friend, Christine Marciano, who is President, Cyber Data Risk Managers, just released her 2012 Data Privacy and Information Security Predictions. The report is an interesting series of predictions on what 2012 will hold in the areas of privacy and cyber risks. Here is how Christine describes the report:

This is our first Data Privacy and Information Security Predictions report. We asked
leading Data Privacy and Information Security professionals what they thought the New
Year will hold in terms of the threats that are on the 2012 landscape. The predictions
that are included in this report offer a wide range of threats and concerns that need to
be considered by every business or organization that operates in cyberspace regardless
of its size.

Christine starts off the report with some of her own predictions regarding 2012 and what people might expect in terms of cyber risks and cyber threats:

As we start 2012, we can expect to see a continuance of data breaches and increasing cyber attacks. Taking a look back at 2011, we have learned that no system is ever 100% secure no matter the name or the size of an organization. It’s important for businesses and organizations to know what they need to be prepared for and to take steps to help minimize the threats that do not appear to be going away. Looking ahead, it appears that in 2012 we will see an increase of heightened and very sophisticated threats than what was seen in 2011. We can recall 2011 as the year the hackers and the hacktivists got started on the data breach and gained a great amount of attention. With all of the digital information and big data that is being stored, it should come as no surprise that data breaches are not going away in 2012 as they are only going to get bigger. I expect that we will also see more serious hacktivists attacks. It seems that the hacktivist is no longer hacking organizations just for the fun of it. They are attacking for specific causes and I believe that hacktivists are going to be a very serious threat in 2012 and organizations must be prepared.

Christine cites me for a prediction about data breaches and insurance coverage for data breaches and privacy risks. Here is her write up for me in the report:

DATA BREACHES WILL FORCE MANY TO REVIEW THEIR EXISTINGINSURANCE POLICIES TO SEE WHAT’S COVERED

Scott N. Godes, [formerly] Counsel, Dickstein Shapiro LLP, states…

In terms of a trend in the areas of privacy and information security, I have noticed a sea change in both areas, leading to more need for analysis of insurance policies to cover these risks. When considering privacy risks, there has been an expansion of risks and potential liability for privacy violations, with the Pineda v. Williams Sonoma decision serving as one example. This year also has been called the year of the data breach, and companies are taking a hard look at how their insurance might and does cover such claims. These risks are being considered much more closely by companies, along with a careful analysis of how their insurance policies might cover.

Follow Scott Godes on Twitter:
@insurancecvg

She also quotes several people who write and speak a good deal about cyber risks, including:

• Misha Glenny, Author of DarkMarket: Cyberthieves, Cybercops and You (Knopf, 2011), about smartphones and international cybercrime;
• Jim Duster, Vice President of Sales, Debix; and Jake Kouns, Director of Cyber Security and Technology Risks, Underwriting, Markel Corporation, about the growth of cyberinsurance for 2012;
• InfoLawGroup Senior Counsel, Richard Santales, about EU Data Protection regulation changes, HIPAA breach notification changes, upcoming FTC privacy report, and cloud computing;
• InfoLawGroup Partner, David Navetta, about concerns over BYOD (“bring your own device”) and COIT (“consumerization of information technology);
• Bruce Anderson, CEO, Cyber Investigation Services, about small and medium businesses becoming a target for data breaches in 2012, increased cyber attacks, growth in website attacks, mobile threats, and hacktivists targeting the cloud;
• Anthony M. Freed, Managing Editor at Infosec Island, about cyber attacks on critical infrastructure;
• Shaun Dakin, Managing Director, Webbmedia Group, about the FTC using existing power to regulate commercial enterprises; and
• Robert Fletcher, founder and CEO of Intellectual Property Insurance Services Corporation, as to how Changes in America Invents Act will drive intellectual property owners to explore specialized intellectual property insurance policies to fund IP litigation.

Disclaimer:

This blog is for informational purposes only. This may be considered attorney advertising in some states. The opinions on this blog do not necessarily reflect those of the author’s law firm and/or the author’s past and/or present clients. By reading it, no attorney-client relationship is formed. If you want legal advice, please retain an attorney licensed in your jurisdiction. The opinions expressed here belong only the individual contributor(s). © All rights reserved. 2012.