Cyber Liability: Private Schools as Targets
Cybercrime and liability impacts us all. It can be financial, it can be personal and in Sony’s case, it can be embarrassing – reputational risk. If you’re operating a school that relies heavily on tuition income, tight finances and notoriety, there may be some information you’d like to review.
What do I mean by this? Personal information of minors is becoming a top target, because minors don’t have standards for credit and identity theft monitoring. Their information can be used many years before they’ll apply for college loans, cars and credit cards.
Schools collect and keep a lot of personal data. Not just information that can damage students or the school on a financial level, but also personal information regarding student development, special needs, health information and even family financial history. Release of this information can cause serious damage to exposed students.
At your school, do employees have laptops that are taken off location? Do employees have remote access capability? In one recent case, two laptops were stolen containing student information. This instance exposed over 7,000 students and a little under 3,000 teachers. Additionally, it’s important to think about what third parties have access to your system. Remember, information can be stolen for use or for ransom. One case occurred involving a school of 2,000 students in which the hacker gained access through a third party and held the school data ransom for a sum of money.
It’s important to review your potential exposure and consider the costs associated with breach notification costs. Possible need to offer credit monitoring, a need to invest in improved encryption or infrastructure, as well as any associated legal costs are all things to be considered. These procedures will help you begin to develop your data breach response program.
An insurance provider will be willing to assist and invest resources with you. As your insurer, they’re incentivized to educate you on exposure and mitigation. They also offer coverage form for things such as breach response costs, credit monitoring and crisis management, cyber extortion and data restoration, defense and regulatory action and forensic investigation, just to name a few.
All indications predict future breaches will be more severe and more difficult to prevent. Simply having a full proof prevention program will not be enough. Consider transferring some of your exposure. If you need assistance with this or have any questions, a member of our ‘A’ Team is here to help.
- School Board Legal Liability
- Get Schooled in Security Threats
- Class Is in Session: Student Healthcare Insurance
- Cyber Liability E-Book
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