Bank heist may have lasting impact on insurance industry

Insurance Industry - Bank Heist

Insurance industry may feel the impact on recent heist

The insurance industry may be set for a shock in the wake of one of the world’s largest bank heists. Late last week, a global cyber crime syndicate successfully stole $45 million from two banks in the Middle East. This was accomplished by hacking into the credit card processing firms that were used by the banks. The funds were withdrawn from numerous ATMs in 27 countries, including the U.S. While this money is typically insured by the governments associated with banks targeted by such attacks, the heist could have a lasting impact on the insurance industry and its approach on security.

Hackers successfully steal $45 million

The U.S. Justice Department currently suspects eight men of participating in the heist. These individuals are believed to be connected with the global crime syndicate and have been referenced as skilled hackers. Cyber crime is nothing new for the insurance industry and insurers have been battling hacking and data breach for several years now. While the insurance industry has become somewhat adept at thwarting threats, hackers are becomiInsurance Industry - Bank Heistng more proficient at circumventing the security measures put in place by insurers and other companies.

Cyber security may soon receive more attention

U.S. officials believe that the funds stolen in the heist will eventually be returned to the banks targeted by hackers. The heist itself, however, may spur banks and insurance companies to become more aggressive when it comes to cyber security. Cyber security is often considered a very complex issue, which is part of the reason why many large companies have such lackluster security. Hackers need only need to find one small vulnerability in order to circumvent an entire security network, which makes it very difficult to create a secure system that could keep hackers out. The insurance industry, which understands the risks associated with such attacks much better than most, has yet to find a solution to the problems presented by cyber attacks.

Banks may be entirely liable for financial damage

The banks affected by the heist are expected to seek reimbursement from their insurance providers. These banks have policies that protect them from cyber attacks to some degree. Whether or not these claims are honored, however, depends largely on whether the card processing firms associated with the heist have adequate security measures in place. If these firms are not considered secure, the insurance industry may not be liable for the heist.