Why You Need Cyber Insurance

Cyber insurance is no longer a “nice to have” commodity. Every SMB and enterprise must have cyber insurance. Besides the obvious reasons, it can also help remove the burden of a potential liability between a client, vendor, or third-party entity.

Most importantly, it can provide peace of mind in the event of a data breach.

Let’s pause for a moment here. No one likes to talk about data breaches until they have to disclose them publicly, but for many organizations, it’s a reality. If an attacker managed to gain unauthorized access and compromise systems or exfiltrate data, who’s to blame?

Hopefully, not you.

However, without proper cyber insurance coverage, your business might be fully liable for damages if your business data is compromised in any way. A long and painstaking process that can quickly deplete your budget in an instant. In this blog, we’ll highlight the importance of having cyber insurance and what to look for when choosing a provider.

The Financial Impact of Cyber Attacks and Ransomware

A recent survey revealed that 87% of global decision-makers said that their company is currently not adequately protected against cyber attacks. Cyber insurance helps ensure that businesses have a safety net in place to cover the financial repercussions of a security incident. It also helps organizations effectively address breaches, both in terms of financial and reputational damages.

Cyber insurance adds a security blanket to organizational risk management strategies, offering comprehensive coverage that extends beyond the immediate costs of a breach, but also in long-term support for recovery and compliance matters, which can be a very messy area.

Ransomware is a serious and expensive threat that many insurance providers do not cover. Sophos found that ransom payments have surged by 500% YoY to an average of $2M in 2023 alone. With ransomware attacks now taking on the form of AI, organizations will have to up their security and insurance game to avoid paying the hefty costs associated with these incidents.

The more pressing question is: Exactly how much of that $2 million is paid out of pocket?

This leads us to the important topic of what to look for when choosing a cyber insurance provider.

4 Things to Look for When Choosing a Cyber Insurance Provider

Incident Response Support: Every second counts after a breach or cyber incident has occurred. Does the policy include support for business continuity planning and disaster recovery? Does the insurer provide access to an incident response team and a crisis management team to guide you through the process? Check if the insurer offers credit monitoring services to help protect affected individuals from any further losses. Dedicated claim managers can also help streamline the entire process, from initial filing to final settlement. Get to know your team beforehand and make sure everyone is aligned with the direction. And last but not least, if you are covered for ransomware, who pays the ransom and waits for reimbursement? Is it you or the incident response team? Just something to keep in mind.

Claims Handling Process: Is the claim filing process a smooth and easy transition or do you have to wait weeks on end for an email or return call? Is the payout process transparent? Do you know how much your deductible is? What are you paying out of pocket, with one or multiple deductibles? Do your due diligence when it comes to this crucial step, particularly with payouts and response times. Businesses simply don’t have time to wait around and stop operations in the aftermath of a security incident. They need to focus their attention on immediate mitigation efforts. Understand how filing a claim might affect your future premiums or coverage. Some insurers might adjust premiums or terms based on claims history. Take the time to carefully review the fine print and details before submitting any claim.

Exclusions and Limitations: What’s included in the plan? Finding this out before you sign any contract is imperative. Make sure you thoroughly review the policy to understand any exclusions or limitations that could prevent you from signing on. Check for exclusions related to pre-existing vulnerabilities or ransomware payouts. Avoid any unpleasant surprises that can pop up later down the line, particularly in a potential breach lawsuit. You certainly don’t want to have to pay out of pocket for legal fees or regulatory fines that you assumed would be covered. Right?

Policies That Include Ransomware Coverage: According to the 2023 Ransomware Trends Report, 21% of organizations found out that ransomware is specifically excluded from their cyber insurance. Not exactly the type of coverage you should be seeking that will give you a good night’s sleep. However, it is not uncommon for insurance carriers to refuse ransom payouts for several reasons. The attack could have been preempted by the organization’s failure to maintain cybersecurity best practices, such as regularly updating and patching software, conducting routine phishing simulations, and implementing advanced security measures like intrusion detection systems. Don’t expect an insurer to provide you with ransomware coverage if you’re not up-to-date on security protocols and employee training either.

Another reason might be if a business failed to follow the insurer’s recommendations for risk mitigation. You can’t expect your insurance provider to hold up their end of the deal if you haven’t upheld yours.

Guardz Pro Tip: It’s important to check if there are any exclusions or caps on the amount that can be claimed for ransom payments.

And above all, make sure you go with a cyber insurance provider you can trust. One that will be there for you 24/7 in a crisis to help you recover and get business operations going.

Secure Your Digital Assets with Cyber Insurance from Guardz

Don’t wait until you’ve been hit with a breach to get cyber insurance coverage. Guardz enables businesses to secure optimal insurance coverage at the most competitive price. Every business is built differently. Guardz understands that and helps you get premium cyber insurance coverage tailored specifically to your business requirements. Whether you’re an SME or a Fortune 500, you must insure your digital assets to keep your operations running smoothly.

While advanced security tools often grab headlines, the foundational practice of patch management and security patching remains a cornerstone of effective cybersecurity. Though sometimes overlooked, these processes are critical in maintaining robust software systems and networks. MSPs create a formidable barrier against potential exploits by systematically addressing vulnerabilities through timely updates. Today, where a single unpatched system can lead to significant breaches, the importance of efficient and comprehensive patching cannot be overstated. For MSPs dedicated to delivering top-tier protection, mastering this practice is not just beneficial – it’s imperative.

The Importance of Patch Management

By systematically applying updates to software and operating systems, MSPs can:

1. Mitigate Security Risks: Close known vulnerabilities that cybercriminals could exploit.
2. Improve System Performance: Many patches include performance enhancements and bug fixes.
3. Ensure Compliance: Meet regulatory requirements that mandate up-to-date systems.
4. Maintain Business Continuity: Prevent downtime caused by outdated or vulnerable software.

Best Practices for Effective Patch Management

1. Develop a Comprehensive Inventory: Maintain an up-to-date inventory of all hardware and software assets across client networks. This forms the foundation for effective patch management.
2. Prioritize Patches: Not all patches are created equal. Prioritize based on the severity of the vulnerability and the criticality of the affected systems.
3. Test Before Deployment: Always test patches in a controlled environment before rolling them out across client networks to avoid potential conflicts or issues.
4. Automate Where Possible: Leverage patch management tools to automate the process of identifying, downloading, and deploying patches.
5. Establish a Regular Patching Schedule: Set a consistent schedule for routine patching, balancing the need for quick deployment with the need to minimize disruption.
6. Monitor and Report Continuously: monitor patching status and generate reports to ensure compliance and identify any gaps in coverage.
7. Educate Clients: Help clients understand the importance of patch management and their role in maintaining system security.

Security Patching: A Critical Component

While patch management covers a broad range of updates, security patching focuses specifically on addressing vulnerabilities that could be exploited by cybercriminals. Best practices for security patching include:

1. Rapid Response to Critical Vulnerabilities: When high-risk vulnerabilities are announced, act quickly to assess and implement the necessary patches.
2. Use a Risk-Based Approach: Prioritize security patches based on the potential impact of the vulnerability and the likelihood of exploitation.
3. Implement a Patch Management Policy: Develop and enforce a clear policy outlining procedures for identifying, testing, and deploying security patches.
4. Utilize Virtual Patching: In cases where immediate patching isn’t possible, use virtual patching techniques to mitigate risks temporarily.
5. Conduct Regular Vulnerability Assessments: Proactively scan for vulnerabilities to identify potential security gaps before they can be exploited.

Overcoming Patch Management Challenges

MSPs often face challenges in implementing effective patch management:

1. Legacy Systems: Older systems may not support the latest patches. Develop strategies to secure these systems or plan for upgrades.
2. Client Resistance: Some clients may resist patching due to concerns about downtime. Educate them on the risks of unpatched systems and schedule updates during off-hours.
3. Complexity: With diverse client environments, patch management can become complex. Use centralized patch management tools to streamline the process.
4. Bandwidth Constraints: Large updates can strain network resources. Consider using local update servers or staggering deployments.

The Future of Patch Management

As technology evolves, so do patch management practices. Keep an eye on these emerging trends:

1. AI-Driven Patch Management: Artificial intelligence is being leveraged to predict vulnerabilities and automate patch prioritization.
2. Cloud-Based Patching: Cloud services are making it easier to manage patches across distributed networks.
3. IoT Device Patching: As IoT devices proliferate, new strategies for patching these often-overlooked endpoints are emerging.

Conclusion

By implementing robust patch management processes, MSPs can significantly enhance their clients’ security posture, reduce the risk of breaches, and demonstrate their value as proactive security partners. By mastering patch management and security patching, MSPs can provide their clients with a critical layer of protection

Key Takeaways: 

• Evolving Threat Landscape: Cybercriminals increasingly use sophisticated techniques, such as fake browser updates, to distribute malware like WarmCookie, posing significant risks to organizations with insufficient security awareness.
• MSPs as Frontline Defenders: Managed Service Providers (MSPs) are responsible for staying current with the latest threats to protect their clients from emerging cyber risks, such as phishing websites and malicious downloads.
• Awareness Is Key: Both MSPs and their clients must maintain high levels of awareness about new vulnerabilities and threats, with MSPs playing a critical role in educating and guiding their customers.

Introduction: A New Breed of Cyber Threat – The WarmCookie Malware

A recent campaign, called FakeUpdate,  of fake browser update pop-ups spreading the WarmCookie malware highlights the ever-evolving tactics cybercriminals use to breach organizational defenses. This attack, targeting users with fraudulent update alerts, emphasizes the critical role MSPs play in safeguarding their clients from these sophisticated threats.

The WarmCookie Malware and Its Impact

In the new FakeUpdate campaign, as reported by Gen Threat Labs, the WarmCookie leverages deceptive browser update notifications, luring unsuspecting users into downloading malicious software. Users, believing they are securing their systems with an update, unknowingly open the door to data theft, unauthorized access, and further compromise of their IT infrastructure.

This type of malware presents a particularly dangerous threat to organizations lacking cybersecurity vigilance. Employees may unwittingly engage with phishing sites or download harmful software disguised as legitimate updates, triggering a chain reaction of security breaches. For small and medium-sized businesses (SMBs), where resources for IT security might be limited, the consequences can be devastating, resulting in data loss, financial damage, or even business closure.

MSPs: Guardians of Cybersecurity for SMBs

MSPs act as the first line of defense for SMBs. They manage IT services and infrastructure, but their role goes beyond mere technical support. They are responsible for securing their clients’ digital environments against a broad spectrum of threats, ranging from ransomware and phishing to malware like WarmCookie.

Cybercriminals are continually updating their tactics, and the WarmCookie case serves as a reminder that staying informed about the latest vulnerabilities is vital. For MSPs, this involves:

1. Threat Awareness: MSPs need to continuously monitor cybersecurity trends and threat reports, such as those provided by the Cybersecurity and Infrastructure Security Agency (CISA), to identify emerging risks. By knowing about threats like WarmCookie, they can implement defenses proactively.
2. Client Education: Many attacks exploit user behavior—such as clicking on a fake browser update. MSPs should implement awareness training programs that teach clients to recognize phishing and fraudulent download attempts, significantly reducing their exposure to risk.
3. Proactive Defense Measures: MSPs must deploy solutions like intrusion detection systems (IDS) and regularly update their clients’ software and security patches to reduce the likelihood of such threats being effective.

A Pattern of Growing Threats: Fake Updates and Malware

The WarmCookie case isn’t isolated. In the past, similar tactics have been used, including:

• 2019 Chrome Update Scam: A widespread campaign used fake Chrome updates to install banking malware on victims’ devices, leading to significant financial theft.
• Firefox Phishing Attack (2021): Attackers distributed ransomware using fake Firefox update alerts, locking down victims’ systems until a ransom was paid.

These incidents underscore a worrying trend: Cybercriminals exploit users’ trust in browser updates to compromise systems. In this environment, MSPs must act as constant guardians, equipped to recognize and mitigate these threats before they cause harm.

Practical Tips for MSPs and SMBs

For MSPs:

1. Automate Software Updates: Use centralized management tools to ensure that all client software, including browsers, is up-to-date with the latest patches. This will reduce the chance that users will fall for fake update scams.
2. Monitor and Detect Phishing Sites: Leverage tools that scan and block access to known phishing domains and suspicious IP addresses.
3. Run Simulated Phishing Attacks: Regularly test client readiness with simulated phishing attempts to identify potential vulnerabilities in human behavior.

For SMBs:

1. Enable Multi-Factor Authentication (MFA): Adding a layer of protection beyond passwords can significantly reduce the risk of unauthorized access, even if malware like WarmCookie is introduced.
2. Conduct Regular Security Training: Ensure employees know how to spot phishing attempts, fake update alerts, and other scams.
3. Back-Up Critical Data: Regular, secure backups will allow SMBs to recover quickly from malware attacks or data loss incidents.

Guardz: Empowering MSPs with AI-Native Detection and Response

As October marks Cybersecurity Awareness Month, it is an ideal time for organizations to revisit their security strategies. MSPs, in particular, must take this opportunity to bolster their defenses and awareness against the latest threats.

At Guardz, we recognize the challenges that MSPs face in protecting SMBs from rapidly evolving threats like infostealers. That’s why our AI-powered unified detection and response platform equips MSPs with cutting-edge tools to proactively detect, isolate, and mitigate threats before they can cause damage. With Guardz, MSPs can offer their clients enhanced security without compromising on efficiency or affordability.

How has Guardz changed your day-to-day operations and peace of mind?

Can you recall a moment when Guardz really proved its worth to you?

How has Guardz impacted your client relationships?

How has Guardz helped you scale your business?

What would you tell other MSPs about Guardz?

How do you see your partnership with Guardz evolving in the future?