Jewelers Suite JHJ Magazine

Cyberattack – How to Protect Your Business

editorial by Berkley Asset Protection

Cyberattacks, fraud and hacking are more prevalent than ever. Some of the largest manufacturers of jewelry and jewelry supplies have reported cyberattacks within the past few months. Last holiday season, these incidents delayed shipments, shut down phone lines, and created major headaches during the holiday rush.

According to GenRe, 76% of small-to-medium businesses in the U.S. experienced a cyberattack in 2019, and yet only 31% had cyber insurance a year later.

It is important to protect yourself! You can secure your business in the following ways:

  1. Add the Cyber Endorsement to your business package policy.

Why cyber coverage? Berkley Asset Protection outlines the following reasons:

  • All 50 states, several Canadian provinces, and the European Union now have comprehensive data breach laws that require businesses to report, respond, and notify consumers in a specific time frame (no later than 60 days, with notification to State Regulatory Authorities often required immediately) that there has been a cyber breach event on the business’s computer network.
  • Businesses are subject not only to the laws of the states they are conducting business in, but the states where their customers reside.
  • Any business that is taking credit cards or collects any protected information from its customers is subject to the laws regardless of any outsourced business partner who may be storing the information. (In other words, My Favorite Jeweler may use a POS vendor to process its credit card transactions, but My Favorite Jeweler is still responsible for the protected information it transacts.)
  • Purchase of the Cyber Endorsement gives the Insured a comprehensive Risk Management Platform with pre- and post-breach information that helps mitigate a potential loss, as well as provides a resource when an actual loss occurs.

2) Use best practices to prevent a cyberattack:

  • Use strong, unique passwords.
  •  Watch for email spoofing – an email sent from an address that’s almost, but not quite, identical to a genuine email address for a known contact – with a request for information.
  •  Be wary of email phishing scams, the most common type of cybercrime. Criminals send mass emails hoping that a few recipients will reply with personal or company information. Misspellings and poor grammar are red flags, but also be wary of any email sent with a sense of urgency, pressuring you to act now and think later.
  • Be careful about clicking links in emails, which could result in malware being installed on your computer, changing passwords, or giving thieves access to sensitive information. Hover over the link to check the actual url or email address before you click.
  • Avoid sharing package tracking numbers via email. If you give a tracking number to someone other than the customer, that person may redirect the delivery location.

Be sure to create a written cybersecurity policy that is read and signed by employees which you review regularly.

For more information about loss prevention, visit https://berkleyassetpro.com/loss-prevention/.