6 Facts of Public Entity Cyber Risks

Public entities such as federal, state and local governments and schools are not immune to cyber risks. For example, just last month the IRS is reported to have exposed over 100,000 tax returns to criminals.

In support of this growing threat, a recent document published by Insurance Journal summarizes information collected by the Ponemon Institute, Travelers Public Sector Services, and the Insurance Information Institute regarding cyber risks for public entities:

  1. The average cost of a single breached record is $172

  2. Likely due to the confidential nature of the records they have, Public Entities are more likely to be the target of cyber attacks.

  3. On average the public sector has paid nearly $9 million each year as a result of cybercrime.

  4. All but 3 states require both public and private entities to notify individuals if their personal identifiable information is breached.

  5. In a 2014 survey only 40 percent of public entities have cyber liability insurance. Additionally another 25 percent were unsure if their organization had cyber coverage.

  6. In 2013 Educational Organizations reported 55 data breaches and lost over 3.2 million records

We recommend that individual purchase identity theft protection such as those plans offered through LegalShield and that businesses purchase cyber liability coverage.

Source:
Insurance Journal: 10 Things to Know About Cyber Risks in Public Entities ยป