Cyber criminals will continue to find new ways to attack in 2013

This issue identifies certain developments insurance professionals can expect in the new year. Beyond those mentioned in the articles in this issue, there is one thing everyone can expect that would require its own magazine to cover. Nothing will have more practical effect on the property/casualty insurance industry and its customers in 2013 and likely for years to come than technology and, specifically, the risks associated with technology.

The year ahead will feature increasingly sophisticated means to capture and exploit user data, escalating battles over the control of online information and continuous threats to the U.S. supply chain from global sources.

According to the Georgia Tech Information Security Center (GTISC) and the Georgia Tech Research Institute (GTRI) there are specific threats on the horizon, which they outline in their report, the “Georgia Tech Emerging Cyber Threats Report for 2013.”

Cloud-based Botnets: The ability to create vast, virtual computing resources will further convince cyber criminals to look for ways to co-opt cloud-based infrastructure for their own ends.

Search History Poisoning: Cyber criminals will continue to manipulate search engine algorithms and other automated mechanisms that control what information is presented to Internet users.

Mobile Browser and Mobile Wallet Vulnerabilities: While only a very small number of U.S. mobile devices show signs of infection, the explosive proliferation of smartphones will continue to tempt attackers.

Malware Counteroffensive: The developers of malicious software will employ various methods to hinder malware detection.

Wenke Lee, director of GTISC, says to expect the continued movement of business and consumer data onto mobile devices in and into the cloud in 2013, which will lure cyber criminals into attacking these relatively secure, but extremely tempting, technology platforms. “The security community must remain proactive, and users must maintain vigilance, over the year ahead,” he warns.

The insurance industry has wrestled with the best way to respond to the many privacy and security exposures businesses face. Since the beginning of cyber-related insurance coverage in the late ’90s, insurance products have continued to evolve. And just as cyber insurance products have changed so have the threats from cyber criminals, Lee says. Every year, security researchers and experts see new evolutions in cyber threats to people, businesses and governments.

Clearly, cyber risk will increase in 2013 and for the foreseeable future, making it imperative that the industry continue its valuable work in understanding, improving and refining cyber insurance.