In recent years, cutting-edge technological trends have evolved, and are affecting practically every industry by allowing large and small businesses, as well as individuals, to work effortlessly, create optimal results in the shortest possible time and aid in data management, among other things. On the other hand, the rise of the technology sector has also brought with it, a corresponding increase in Cybersecurity issues.
The year 2011 witnessed a major breach in the game console industry, as Sony’s PlayStation Network was attacked by cybercriminals. This attack led to the breach of personally identifiable information of 77 million PlayStation user accounts, and prevented the users’ access to the PlayStation service to retrieve, alter or delete their data. This lasted for 23 days and Sony incurred over $171 million in costs, related to the breach. Zurich American Insurance Co., the Insurance company retained by Sony Corporation of America and Sony Computer Entertainment America (‘Sony’), did not bear liability because Sony’s deal only includes personal and advertising injury liability coverage, as provided by typical General Liability policies, which are specifically intended to cover resulting bodily injury and property damage liability.
Could Sony have done better by insuring the data of the Users?
The emergence of COVID- 19 forced many businesses and organizations to adopt a remote working model. Flowing therefrom, businesses have chosen to develop their online presence, to scale their products and services irrespective of the nature of their businesses, with or without a standard, robust security structure. A recent survey by Sophos Group PLC revealed that 86 per cent of Nigerian companies fell prey to cyberattacks within the past years. The second highest percentage recorded globally after India, and much higher than South Africa with 64 per cent. According to Sophos’ report, Nigeria had the highest percentage of data leakages worldwide in 2021, and ranks in the top five for other forms of attacks: Ransomware, Malware, Crypto-jacking.
This article deals with another layer of security, that can protect businesses from liabilities that may arise, as a result of a breach of the business network infrastructure.