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Protect Your Business from Cyber Risks & Liabilities

By September 16, 2025Insurance

Understanding Cyber Risks and Liabilities: How to Protect Your Business

Multiple Cyberattacks Target U.S. Insurance Companies

The image depicts a high-tech cyber defense control room, dimly lit with blue glows from multiple monitors displaying dynamic data streams and alert messages about active cyber threats, specifically highlighting the United States. In the center, a focused IT security analyst, wearing a headset, is urgently responding to a “Security Breach Detected” alert, while blurred figures of colleagues collaborate in the background, emphasizing the seriousness of protecting sensitive information against cyber attacks.

On June 20, 2025, major insurance company Aflac disclosed that it had experienced a cyber incident within its network. Although the company confirmed that it identified and resolved the incident in a matter of hours and remained operational throughout, various types of sensitive stakeholder files (e.g., claims data, health history, Social Security numbers, and personal contact information) were potentially compromised during this time frame. This incident marks the third large-scale cyberattack targeting a U.S. insurance company in recent weeks. Each attack involved advanced social engineering tactics and ransomware; according to reports from Google Threat Intelligence, this indicates a connection to the well-known cybercrime group Scattered Spider. In the days since Aflac reported the incident, cybersecurity experts have voiced concern over the possibility of a continued attack spree across the insurance industry, urging financial institutions and underwriting businesses to be on “high alert.”

Scattered Spider Activity

Scattered Spider, consisting of experienced hackers across the United States and Europe, is believed to have first formed in 2022. These threat actors are known for leveraging sophisticated phishing scams and multifactor authentication exploits to launch disruptive ransomware attacks. Since its inception, the cybercrime group has been tied to several attacks on high-profile organizations worldwide. Scattered Spider generally focuses on a single industry at a time, attacking a series of businesses in the same sector for an extended period. In 2023, the group was assumed responsible for cyber incidents impacting multiple Las Vegas hotels and casinos operated by Caesars Entertainment and MGM Resorts. During the first half of 2025, the group was connected to system outages among global retailers like Marks & Spencer and Co-op in April and Victoria’s Secret in May. Recently, Scattered Spider has shifted focus to the U.S. insurance industry, linked to cyberattacks on Philadelphia Insurance Companies and Erie Insurance prior to the Aflac incident.

Next Steps to Mitigate Risks

In light of these developments, Organizations should closely monitor their threat detection systems to swiftly identify unusual network activity and instruct employees, especially those working at help desks and call centers, to diligently watch for and report suspected phishing scams. Additionally, businesses should review their cyber insurance policies and cyber insurance coverage to ensure adequate protection against financial losses and reputational harm resulting from cyber extortion and ransomware attacks. Engaging a reliable cyber insurance provider can also help mitigate lost income and provide access to additional resources for incident recovery, including credit monitoring services for affected customers. Contact us today for more industry updates.

The Evolution of Phishing in the Age of Artificial Intelligence

Phishing attacks, where cyber criminals manipulate users into disclosing sensitive customer information or installing malware through fraudulent communications, have been a persistent cybersecurity threat, often resulting in significant financial losses and reputational harm for businesses. Recently, cybercriminals have begun leveraging artificial intelligence (AI) to power these attacks, making them more convincing and difficult to detect. Traditional phishing attacks are generic and prone to errors, with red flags such as misspellings and grammatical mistakes that are relatively easy to spot. AI-powered phishing attacks, however, are highly personalized, linguistically polished, and difficult to differentiate from legitimate communications. These cyber threats are also more easily scalable and increasingly targeted. For example, AI-led attacks may use “spear-phishing” schemes, where fraudulent communications are sent to specific recipients, or business email compromise tactics, where cyber criminals impersonate corporate leaders by hacking accounts or creating realistic counterfeit messages requesting sensitive information or payment. AI is changing traditional phishing techniques by enhancing personalization, automating attacks at scale, and simplifying bypassing of standard safeguards. While AI-powered phishing attacks present new risks, businesses can take several steps to protect their operations:

A split-screen digital illustration depicts the evolution of phishing attacks, contrasting a poorly formatted, traditional phishing email on the left with a sleek, AI-powered spear-phishing email on the right. A faceless hacker silhouette overlays both sides, emphasizing the silent threat posed by cyber criminals and the importance of cybersecurity awareness to mitigate risks.

  • Deploy Advanced Security Solutions: Utilize anti-phishing software with AI-driven detection capabilities and context-based defenses to evolve security systems alongside advancing attacks.

  • Strengthen Email and Identity Security: Implement multifactor authentication and routinely change strong, unique passwords to make it harder for cyber criminals to gain access. Use email filters, firewalls, and authentication protocols to enhance information security.

  • Educate and Empower Employees: Provide ongoing security awareness training about the latest cyber threats and tactics used by hackers. Conduct phishing simulations to help employees recognize and respond effectively to fraudulent communications.

  • Develop Comprehensive Policies: Create, communicate, and enforce clear data protection policies that are regularly reviewed and updated to respond to emerging cyber threats.

Contact us today for further risk management guidance.

Mitigating Zero-click Attacks

While most cyberattacks involve users being manipulated into actions such as sharing login credentials or clicking harmful links, some attacks, called zero-click attacks, can be launched without any user interaction. These attacks exploit software flaws in mobile devices and applications to deploy malicious code silently.

As cyber incidents become more sophisticated, zero-click attacks are on the rise, representing a new frontier in cyber risks for businesses across industries. These attacks can lead to stolen assets, damaged systems, regulatory fines, and legal penalties. To mitigate these risks, businesses should:

  • Maintain Updated Software: Regularly update all workplace devices, operating systems, applications, and firmware to patch vulnerabilities and block cyber criminals from exploiting weaknesses.

  • Utilize Multilayered Security Solutions: Equip devices with advanced threat identification systems, antivirus programs, firewalls, and intrusion detection tools to monitor IT infrastructure and detect abnormal activity.

  • Establish Segmented Networks: Segment networks to prevent lateral movement by cyber criminals, limiting the scope of potential damage.

  • Vet All Third-party Vendors and Applications: Carefully evaluate third-party software vendors and applications for security flaws before finalizing contracts, as many organizations face risks through third-party vendors.

Contact us today for additional cybersecurity resources.

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