As this blog has previously discussed, it's important in this digital age for businesses to keep themselves properly protected against online security threats. Without necessary guardrails like technology insurance, an organization could find itself under severe public scrutiny and could pay heavy financial damages in order to fully recover.
The U.S. Department of Energy admitted that hackers breached 14 of its servers and 20 workstations two weeks ago. While the organization said that "no classified data was compromised," it added that personal information belonging to several hundred employees was taken.
This is not the first time the company has faced security issues. According to InfoWorld, an audit of the Energy Department last year revealed that 58 percent of the department's computers were running operating systems (OS) or applications that hadn't been patched against known vulnerabilities. Furthermore, at least 157 of the department's network systems needed patching and 41 servers were running an OS no longer supported by vendors.
"It's a continuing story of negligence," Ed McCallum, former director of the department's office of safeguards and security, told the Washington Free Beacon. "[The department] is on the cutting edge of some of the most sophisticated military and intelligence technology the country owns and it is being treated frivolously by the Department of Energy and its political masters."
Organizations of all sizes and across numerous industries need to be extremely diligent when it comes to data security. Especially with ever-evolving technologies, businesses are becoming increasingly reliant on computer systems. Should customers' information become compromised, companies could pay hefty financial fines and lose future business.
Working with commercial insurance specialists that can help organizations find a comprehensive technology insurance policy will be greatly beneficial. That way, businesses are able to recover more quickly should cyber attacks be able to break through their security systems.