Insuring the Cloud: Hackers Make It Rain Private Data!

The introduction of the cloud was a truly revolutionary idea: Let someone else (perhaps an online book retailer) store your data for you (maybe even next to your competitors), and let them absorb the storage and computing costs. Of course, not everyone is on board with the cloud. There are still valid concerns regarding the safety and security of cloud-based data.

Which begs the question, is cyber policy insurance necessary for cloud users? Below we will look at the cloud, its security features and what you can do to prevent data breach.

Head in the Clouds
For those who don't know, the cloud is a data storage model in which a hosting company leases its servers to a client while keeping the data accessible and available to the owner of the data. In other words, the security of your data is in the hand of the cloud vendor rather than your in-house IT team.

As you can imagine, there are a number of concerns that come up when talking about someone else managing your data. Then again, cloud clients often benefit from the amplified resources the vendor provides, along with the dedicated team of experts they employ. This is especially true for small businesses who simply do not have the same level of internal bandwidth to manage and monitor in-house data.

Still, the most common threats to cloud security are not so different from the threats SMBs face every day. Here are a few examples:

  • Data Breach: Since the cloud hosts a vast amount of data, it has become an attractive target for cybercriminals. While exposed personal financial information tends to capture headlines, breaches involving health information, trade secrets and intellectual property, according to InfoWorld, are far more devastating.
  • Cracked Credentials: Weak sign-in credentials and passwords are the bane of any secure service. These can either be stolen through spear phishing campaigns or cracked using a brute force attack; either way, it's bad news for your privacy.
  • Hacked APIs: An API, or application program interface, is commonly used to manage cloud services through various interfaces such as visual monitoring or smart orchestration. However, your cloud-based data can fall prey to hackers if the API contains security gaps.
  • Act of God: Believe it or not, but many cloud services have experienced significant downtimes or suffered permeant data loss due to electrical storms and inclement weather; something the insurance industry refers to as an 'act of God'.
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Luckily, most of these problems can be remedied with a little cybersecurity knowhow, including backing up vital data onsite, using strong password protocols, avoiding suspicious emails or downloads, regularly updating APIs and only using services with an emphasis on privacy and defense.

If, however, you are still anxious about the cloud, cyber policy insurance from a reputable provider can offer you peace of mind. In the event that your data is breached by a malicious hacker, CyberPolicy can protect your business against the damaging financial effect of such an attack.

Don't let cybercriminals rain on your parade, invest in cyber policy insurance today! Click to get your free quote.

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