Community association boards can use simple and inexpensive methods to protect sensitive data against cyber crime and breaches, according to an insurance expert.
During “Cyber Threats: Claims, Risks and Protections for Community Associations,” a recent CAI webinar, Kevin Davis, CIRMS, president of Kevin Davis Insurance Services in Los Angeles, suggested community association board members and managers increase their awareness and knowledge of potential cyber crime by asking questions and having conversations with business partners.
Davis says board members sometimes have access to money and personal data such as social security numbers, account numbers, and drivers’ license numbers. They may believe sensitive information is secure but can easily be deceived into divulging information for fraudulent purposes if they aren’t paying attention, he says.
For example, if volunteers get unusual requests for bank and routing numbers, check it out before honoring the request. Once the information is released the information, they can’t get the money back.
To protect themselves in case of an attack or breach, Davis advises community associations to research and invest in cyber crime insurance policies. The policies include cyber liability coverage, ransomware coverage, cyber first-party coverage, wire transfer fraud protection, and crime insurance coverage.
Installing multifactor identification, keeping computer systems updated, changing passwords regularly, shredding important paper documents, and tightening up systems and policies to prevent insider threats are other ways boards can protect themselves in the digital age.
Davis says it’s also important to review management contracts and develop a plan in case management companies and third-party contractors don’t have appropriate insurance coverage against cyber threats and breaches.
Breaches can be expensive from a financial and human perspective. Forensic exams, legal defenses, fines and penalties, and ransom demands can strain community budgets. “Think before you click,” says Davis.
>> Learn more about how to protect your community association from cyber crime.
