Former hacker joins underwriter Iain Ainslie to highlight cyber and regulatory threats to businesses

Cyber War

A former hacker, Tom Roberts of security testing firm Pen Test Partners, joined ACE European Group’s cyber liability underwriter Iain Ainslie for a cyber seminar at the Airmic conference this week.

The session looked at the growing threat of cyber crime, and the anticipated impact of the EU’s proposed Data Protectional Directive, scheduled to be voted on in July.

As a result of the directive, it is expected that UK companies will face increased data breach claims costs – in some cases, 2% of global revenue for organisations that mishandle personal data – as well as US-style notification requirements once legislation is introduced.

The risk is not limited to concerns over potential future fines, however. Ainslie said: “The cyber threat is affecting businesses today, even before any EU legislation is introduced. For organisations that hold customers’ personal and financial details, data breach is a significant threat to corporate reputation.”

Demonstrating how the range of cyber attacks on UK companies is becoming more challenging and diverse, Pen Test Partners ran an interactive demonstration, showing just how easy it was for hackers to access personal data.

Ainslie concluded: “The threat to UK companies is growing increasingly hostile, and many risk managers are still unaware how easy it is for hackers to access sensitive information.

“If you are carrying data that could jeopardise your company, then it requires protection that is appropriate to the value of the data being protected.”

Security firm Norton estimates cyber crime costs the global economy $388bn (£250bn) annually, and the expectation is that this will continue to rise.