Companies Struggling to Insure Against Cyber-Attacks

February 23, 2015

Bayshore Blog Post: Financial Times report

February 23, 2015

FT: $1B in Cyber Insurance Coverage Required

Gina Chon of the Financial Times, with Alistair Gray, reports that industry experts are warning that companies will need as much as $1B in cyber insurance coverage as the costs of hacking attacks mount. But some groups are struggling to secure a tenth of that.

The maximum amount of cyber insurance currently available is $500M, although most companies have difficulty obtaining more than about $300m in coverage. That means they could face hundreds of millions of dollars in extra costs if their networks are hacked.

The scale of the threat was highlighted this week when researchers at Kaspersky Labs, a Russian cyber security group, said they had uncovered sophisticated spying software in the hard drives of personal computers used in 30 countries, including Iran, Pakistan, Russia and China. The costs of cyber attacks are rocketing.

US retailer Target said in November that the cost for the data breach that affected up to 110m of its customers had reached $248M.

But costs would be even higher in the event of a catastrophic hit on a large bank or a power utility. That kind of threat has prompted the US government and the private sector to work together to find ways to boost coverage.

Read More

U.S. Establishes New Cybersecurity Agency

February 15, 2015

Bayshore Blog Post: Reuters report

February 16, 2015

Reuters: Hacks Prompt U.S. to Establish New Cybersecurity Agency

Last week, Warren Strobel of Reuters reported that the U.S. government is creating a new agency to monitor cybersecurity threats, pooling and analyzing information on a spectrum of risks.

The Cyber Threat Intelligence Integration Center will be an "intelligence center that will 'connect the dots' between various cyber threats to the nation so that relevant departments and agencies are aware of these threats in as close to real time as possible," the official said on condition of anonymity.

The President has moved cybersecurity to the top of his 2015 agenda after recent hacking attacks against Sony Pictures, Home Depot, Anthem and Target and the federal government itself. He sees it as an area of cooperation with Congress.

The announcement was followed with this Valentine over the weekend: A Kaspersky Lab investigation revealed that a cyber bank theft actually was an attack on more than 100 banks and other financial institutions in 30 nations. That could make it one of the largest bank thefts ever. Conducted by malware, it did not include the usual signs of robbery.

NY Times: Bank Hackers Steal Millions Via Malware

Read More

DARPA - "Nobody's safe on the Internet"

February 10, 2015

Bayshore Blog Post: 60 Minutes report

February 10, 2015

Transcript and video.

The mainstreaming of the IoT continues - this week's 60 Minutes episode highlighted current security concerns. Entitled DARPA Dan, the episode aired on February 8, 2015. Lesley Stahl is the correspondent. Shachar Bar-On, producer.

The recent cyber invasions of Sony studios and military Twitter feeds highlight how hacking has morphed from a commercial nuisance to a matter of national security. The man the Department of Defense has put in charge of inventing technology to fight this new Internet war is Dan Kaufman. He heads the software innovation division of DARPA - the Defense Advanced Research Projects Agency, tasked with maintaining our military technological superiority.

Key Quote:

"I don't think the Internet is broken. I think the things we put on the Internet are broken. What we're doing is we're putting a lotta devices on it that are unsecure." - Dan Kaufman

Read More

Security and Cost Need to be Resolved Before the Internet of Things Takes Off

February 02, 2015

Bayshore Blog Post: Financial Times Report

February 2, 2015

Maija Palmer of Financial Times writes about a topic that is consuming our time here at Bayshore Networks. He reports that the hype surrounding the Internet of Things reached a peak at this year's International Consumer Electronics Show in Las Vegas, where more than 900 companies exhibited connected products. Samsung, makers of products from fridges to phones, said that within five years all of its appliances would be able to connect to the internet.

The predictions for the number of objects that will be connected are big — from technology research company Gartner’s forecast of 25 billion connected physical objects by 2020 to tech company Cisco’s more bullish 50 billion forecast.

Palmer writes that Security will need to be improved to ensure that Internet-connected objects cannot be hacked and hijacked. Physical attacks over the Internet are happening. At the end of last year the German federal office of information security revealed that machinery at a German steelworks was severely damaged when hackers gained access to control systems via the Internet.

“There are big security holes and quite a lot of work needs to be done to fix them,” says Jim Tully, analyst at Gartner.

For the full report, click here.

Read More