If your club’s computer system becomes corrupted or otherwise unavailable, how long could you operate without it? The answer is probably not long. Cyber criminals know and depend on that reality, which is contributing to the growing threat of malware or ransomware attacks.
Take these steps to lessen the likelihood of a successful computer attack:
In addition to email threats, educate your employees to beware of social engineering fraud. This is an evolving risk category that refers to attempted theft through a modern confidence scheme. In a social engineering attack, a criminal uses publicly available information, such as your club’s website, to learn about your key personnel, obtain their email addresses and even information about the vendors with which you do business. Next, the criminal impersonates a key vendor to request that payment, or future payments, be sent to a different address or bank account. Or they impersonate a top club employee to request a transfer of funds to a different account than usual for alleged business purposes. If your employee doesn’t question an unusual request and deposits funds as instructed, the fraud may not be detected until the actual vendor asks why they haven’t received payment.
Train your employees:
In spite of your best efforts, your club may still suffer a computer attack or social engineering fraud. Review your insurance program to ensure that your club has coverage to help you respond quickly, recover your operations and maintain the confidence of your customers, employees, vendors and even regulators.
This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article.
Jayson Scott has 14 years of experience as a commercial lines underwriter at The Cincinnati Insurance Company. Since 2014, he has supported Cincinnati’s growing Fitness, Sports & Recreation program, initially as the program’s dedicated specialist and now as national program director. For more information, contact Jay, Jayson_Scott@cinfin.com or 513-603-5885. Please visit cinfin.com/fitness-sports for more information.