Risk & Business Magazine General Insurance Services Spring 2020 | Page 26

CYBER RISKS
How Cyber Threats
Put The Hospitality
Industry At Risk
W
e live in a world where
modern technology has
given us the opportunity
to find anything we
need with the click of a
button. Whether you’re planning a trip to
an exotic location, making a reservation for
dinner with friends, or finding a parking
spot, odds are you’re booking and paying
for these things through the internet or
on a mobile app. Thanks to the magic of
the inter-webs, we have the ability to make
educated decisions, do extensive research
and plan the most amazing vacations
all from the comfort of our own homes.
With these advancements, identity theft
has become the fastest growing crime in
America today according to the U.S. Federal
Trade Commission.
The hospitality industry has followed
trend on going paperless and utilizing
cloud-based point of sale systems and
storage software giving consumers
the conveniences they have become
accustomed to. This new technology can
help streamline operations, attract new
customers and reduce costs, but many
employers do not realize the extent of their
cyber risk vulnerabilities or how they can
avoid a breach to protect consumer’s data.
Dr. Godwin-Charles Ogbeide, Director of
the White Lodging School of Hospitality
26
and Tourism Management College of
Business at Purdue University Northwest
notes, “Hackers keep coming up ways to
breach security. If business operations
leave the window open, they will dive in.”
He continued, “Cyber-attacks shouldn’t
negatively impact the hospitality industry
overall, but it does warrant vigilance from
both business operations and consumers.
We want to make sure that we don’t instill
fear in our consumers when it comes to
cyber security but advise them on how to
protect themselves.” Dr. Ogbeide advised,
“I recommend that consumers utilize one
credit card for all online transactions.
If there is a breach you can cancel that
card immediately without a devastating
impact.”
According to a 2017 study by the Ponemon
Institute, the average annual cost of
cyber-attacks for small and medium sized
businesses was over $2.2 million. Most
small to medium sized businesses don’t
have millions in reserve, causing nearly
60 percent of those victimized to close
permanently within six months of the
attack. Many of these businesses put off
making the necessary improvements to
their cyber security protocols until it was
too late because they feared the costs
would be exorbitant. It is a common
misconception that all businesses’
insurance policies will cover a loss due
to a cyber-attack. The truth is that every
insurance policy is uniquely tailored
to each individual business so unless
you’ve elected to have a cyber policy, your
company may be left vulnerable.
At General Insurance Services, our goal
is to have a deep understanding of each
business we represent. We take our time
examining every risk profile thoroughly
which allows us to work hand in hand
with owners to build out a strategic
plan. Improving a company’s risk profile
strengthens their appeal to insurance
companies, improves safety measures,
enhances company culture, and can even
impact employee education and retention
programs. Cyber security is no different;
the key is to take threats seriously and
implement a proactive approach. Having
the proper tools to evaluate cyber risk and
educate employees is something GIS takes
pride in offering to our clients.
HERE ARE 10 WAYS TO PREVENT CYBER
ATTACKS:
1.Train employees in cyber security
principles.
2. Install, use and regularly update
antivirus and antispyware software on
every computer used in your business.
3. Use a firewall for your internet
connection.