Pub. 8 2018 Issue 3

18 www.azbankers.org B Y THEIR VERY NATURE, BANKS ARE AN ATTRACTIVE TARGET FOR CYBER CRIMINALS BECAUSE OF THE ASSETS THEY HOLD AND THE PERSONAL INFORMATION OF CUSTOMERS THAT THEY KEEP. DUE TO THE EVOLVING THREATS AND UNCERTAINTY IN TODAY’S CYBER LANDSCAPE, IT IS VITAL FOR BANKS TO TAKE THE NECESSARY STEPS TO GUARD AGAINST VULNERABILITIES AND EXPOSURES, AND TO PROTECT THEMSELVES FROM MALICIOUS ATTACKS THAT CAN CAUSE SERIOUS HARM. A SINGLE BREACH CAN RESULT IN SIGNIFICANT LOSSES, AND THE DAMAGE IS OFTEN NOT LIMITED TO LOST DATA. IT CAN EXTEND TO LOSS OF CUSTOMER CONFIDENCE, FINANCIAL HARM, LEGAL CHALLENGES AND BUSINESS INTERRUPTION. Much like cyber threats such as ransomware, social engineering and phishing, cyber security has also evolved. Many insurance companies, including Travelers, offer risk management services that feature pre-breach cybersecurity expertise. These services go a long way toward strengthening the systems that banks use to keep cyber criminals at bay. In the event of a cyber attack, post-breach assistance kicks in, provided a bank has secured appropriate insurance coverage. Over the past few years, banks have increased their focus on pre- paring for a cyber incident – in other words, recognizing that when it comes to a network compromise, “it’s not if, it’s when,” even for a well-defended network. Banks are doing a better job of updating their incident response plans, business continuity plans, and disaster Cyber Risks By Michael Whitmer, Corporate Communications Director, Travelers