Sept 17, 2007

In the News: Cyber, Privacy and Security Exposures

Last year, Cyber, Privacy and Security exposures were considered to be less significant risks. This year, these exposures are of primary concern to your clients and are the stories making the headlines.

Connecticut
8/9/2007 - A prestigious university reported the theft of a computer containing the Social Security numbers of 10,000 current students and 200 faculty members. They were required by state law to notify all of those who were affected.

Massachusetts
1/27/07 - A major retail company reported the theft of 45.6 million credit and debit card numbers after a breach of their system via malicious software was discovered. Costs of recovering from the breach, including those from notification costs, system recovery, and bank/customer lawsuits, are currently estimated at $256 million and rising.

Indiana
1/24/2007 - A health services company was sued for violations of privacy and negligence with damages of $1000/person when an outside contractor returned a computer bag to a store, with important disks containing patient records still in the pocket. 260,000 patients and 6,200 employees were affected by the incident.

Texas
4/17/07 - A major retail pharmacy was sued by the state when medical prescription forms with the names, addresses, date of birth, and types of prescriptions were found in a dumpster behind the building. The Attorney General's office is seeking the maximum penalty of $50,000 per violation.

Ohio
6/15/07 - A state department notified employees of a potential breach of 64,000 state workers' personal information including social security numbers. The potential breach was the result of backup disks that had been stolen out of an employee's car.

New York
4/26/07 - A Chicago-based independent insurance broker was cited by the New York Attorney General for failing to report the loss of computer containing confidential information in a timely fashion. The company was forced to pay for notifying clients and also paid the state $60,000 for the cost of the investigation.

New Jersey
5/17/07 - A major toy store was sued based on a 2003 federal law that requires retail stores to limit the amount of identifying information that is shown credit card receipts.

Let us work with you to help identify your client's potential exposures and make sure they have the proper protection. For more information, contact:

Offices in Connecticut, Massachusetts, Minnesota, New York, Ohio and Florida

For general information about S. H. Smith, feel free to call or email anyone at any of our offices. For any state not listed below, please contact Bruce Anderson, Chief Marketing Officer. S. H. Smith & Co. is a national firm, licensed to write in all 50 states.

S.H. Smith & Company is a national, independently-owned excess and surplus lines insurance broker, managing general agency and program administrator. Our specialists in each of our divisions have a depth of experience which we believe is unmatched in the industry. For more information, please call Scott Smith, president, at 860.561.3600 or email by clicking here.

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