NEW YORK (MainStreet) About 21% of companies use cloud providers to store and retrieve data. Of those, only 54% have an incident response plan for cyber breaches, including the theft of confidential customer information, according to Chubb's 2013 Private Company Risk Survey.
"This is surprising in light of the fact that a large number of these firms have been sued in recent years by employees, customers, government agencies and other parties," said Tracey Vispoli, senior vice president and specialty insurance global customer segments leader with Chubb.
While individuals and businesses continue to embrace the convenience of technology, it is also causing people greater concern.
"In general, everyone in the Information Age tends to think data is an asset and that if you can collect it, then you should, because it's cheap to store," said Marilyn Prosch, associate professor at Arizona State University. "If you don't need it, then don't collect it, and only keep what you need for the required amount of time."
According to the Travelers' Consumer Risk Index, 64% of individuals cite personal privacy loss or identity theft as a significant concern.
Electronic funds transfer fraud involves fraud crews, often based in ex-Soviet Republics, who scour LinkedIn for finance directors at companies and send them legitimate-looking emails about compliance and fraud. "Once the email is opened, the malware installs and accesses electronic transfer data," Baylor told MainStreet.
For the individual, electronic transfer fraud is less common because consumers can move small amounts of cash but not much more and banks tend to reimburse consumers under Regulation E, which refers to the Electronic Fund Transfer Act that was passed by Congress in 1978 and implemented by the Federal Reserve Board.