Pub. 14 2019-2020 Issue 6

NEBRASKA BANKERS ASSOCIATION 23 Fully registered Dealer Bank • Not FDIC Insured • No Bank Guarantee • May Lose Value FROMONE COMMUNITY BANK TOANOTHER. Country Club Bank Capital Markets Group has assisted community banks build high- grade bond portfolios that reflect specific markets expectations, product preference, income goals and overall risk parameters, since 1985. Operating in over 30 states, the Capital Markets Group is always ready to meet the needs of our fellow community bankers. We keep investing simple so that banks can focus on what really matters— lending to the communities who support us. • Portfolio Strategy, Fixed Income Sales and Service • Bond and Securities Underwriting/Trading • balanCD Brokered CD and TBA Programs We speak the same language. exclusions. Many carriers offer different levels of coverage and endorsements. The greatest coverage does not mean squat if you do not execute your response plan and have everyone on the same page. Threat Landscape Cyber liability coverage began to pick up popularity in the early 2000s. As technology has progressed, so has the sophistication of cyber events and the sheer volume of incidents each year. Some carriers have reported more than 15,000 actual cyber events in the last 60 days and expect a continued escalation of incidents. It’s no longer “if” but “when” an incident will occur. The related financial impact to those ill prepared can be devas- tating to their businesses and customers. The perpetrators are not the teenaged kids in their parent’s basement hack- ing their way in to cause mischief and mayhem. These criminals are part of professional organizations, nation states and terrorist groups looking to fund their agendas and cause severe, irrepa- rable damage to the targeted industries and businesses. Healthcare, financial and education institutions comprise the three largest industries of where cyber incidents are occurring. Ransomware is Largest Growing Threat Ransomware is the fastest changing and evolving threat for financial institu- tions. Packaged ransomware programs are easily obtainable for the less sophis- ticated cyber criminals on the dark web. For example, Dharma, Phobos, Ryuk and Sodinokibi continue to dominate the ransomware market. Ransomware is no longer limited to holding your data for ransom. Cyber criminals are selling data on the dark web. At the time of the “ran- som” request, most often, portions of the stolen data have already been released. Some of these professional organizations even offer a “customer service” call center to facilitate an easy transaction. Bitcoin is the preferred method of payment as it is anonymous, cannot be tracked currently and can be exchanged for any currency. During an incident, the involvement of computer forensic specialists and legal counsel is essential to investigate, assess and negotiate terms on the financial institution’s behalf. Regulator inquiries will also factor into these situations. To pay or not to pay is ultimately the financial institutions decision but consider the following: • Six and seven figure ransom amounts are now regular demand requests; • Demands are negotiable – let the professionals do this; • Data restoration – bad segmentation, corrupt data and improper backup intervals; • High percentage of companies receive a working decryption tool if ransom was paid; • Average ransom amount paid across all industries is $41,198; • Increased number of ransom demands are equal to or negotiated down to the business’s “cyber liability” limits; and the • FBI estimates that $1 billion in paid ransomware demands in 2017. Minimize Exposure — continued on page 24