What Choice Escrow Taught Us About Cyber Risk

Are You Relying On Your Bank To Protect Your Money? Stop!

If the recent attack on Choice Escrow taught us anything, it is that you cannot rely on your bank to protect you from a virus—like the Zeus virus used in the Choice attack—it swipes money from your account. In fact, the federal appeals court ruled that this loss was the responsibility of Choice Escrow and that their bank is not at fault and consequently does not need to replace the funds.

Choice lost $440,000 in this instance. Would your business be able to recover from this kind of financial blow? Since this ruling shows that we can no longer lean on your financial institutions to protect ourselves from cyber risk, what do we do?

The easiest way to protect your business from the threat of a breach is by carrying cyber risk insurance. These insurance policies can cover the cost of determining the extent of your breach, alerting all of your contacts that have been affected by it, and paying out settlements when necessary for compromised private information.

Even while you have coverage in place, your life will be much easier if you do not become the victim of a hack in the first place. Encouraged company-wide protocol that ensures private information is only passed via secure means, and make sure you are taking advantage of every safeguard your bank and other services offer to you. Typing in an extra password might seem tedious, but it could save you a big chunk of change as is evidenced by the Choice Escrow case.

What has your business done to limit its cyber liability? Contact the insurance professionals at The Insurance Shop in White Bear Lake, Minnesota for all of your cyber insurance coverage needs. Do not wait to give your business the safeguards it needs in the modern age.