Published on March 21, 2014
SOCIAL MEDIA & CYBER LIABILITY By Brenda Wells, Ph.D.,CPCU, AAI
LET’S BEGIN WITH A REALITY ABOUT THE PASSAGE OF TIME…. 2
IN THE 1950’S… DECENT SOCIETY WAS EXPECTED TO END BECAUSE OF…. 3 Copyright2014--BrendaWells
5 Copyright2014--BrendaWells IN THE 1960’S, HIPPIES WERE CONSIDERED HOPELESS… THEN? THEY GREW UP
7 Copyright2014--BrendaWells CHANGE IS GOOD… DON’T BELIEVE ME?
10 SO WHAT IS THE DEAL WITH SOCIAL MEDIA?
WHO IS USING SOCIAL MEDIA? Smallbusiness owners/entrepreneurs People looking for work Government Nonprofits and community groups Employers Students Schools EVERYONE??? 11 Copyright2014--BrendaWells
Social media& blogs reach 80% of U.S. internet users Source: http://www.slideshare.net/HubSpot/social-media-is-a-lot-like-sex
BLOGS Websites with regular entries that might include Commentary Education Eventinformation Graphicsandvideos Linkstoothersites Guess how many blogs there are? Over 200 million!!! 13 Copyright2014--BrendaWells
FACEBOOK September 2013: 1.19 billion+ users 14 Copyright2014--BrendaWells
CYBER LIABILITY 18
Liability coverage: Damages fromloss orcompromiseof sensitive thirdpartydata Patientrecords arepublished on theinternet Credit carddatais compromised Damage toa thirdparty’snetworkcausedbyyourown network Yoursystem causesa breachof theirsecuritydueto spreading avirus Damages causedby e-media Disparaginguntruthfulremarks made abouta competitor on social media Expense coverage: Of notifyingeveryonewhose privacy hasbeen breached Of providingcredit monitoring,restorationof stolen identity,etc. Regulatory coverage: Paysforcosts ofinvestigationbyfederal orstateauthoritiesas a result ofa data breach. 19 5 CYBER LIABILITY COVERAGES Copyright2014--BrendaWells
Industry group coverage: Pays finesassessed byindustry associations for data breaches Example: Visa and Mastercardhave securitystandards. Ifbreached, the entity can befined. First party coverage Lossof revenuesdue to networkinterruptions Cost ofrestoringdata 20 5 CYBER LIABILITY COVERAGES Copyright2014--BrendaWells
Not dependent upon Revenues Products sold Number oflocations Instead it depends on how many records of private information you hold 21 Copyright2014--BrendaWells ASSESSING THE RISK
3rd largest privately held US firm $30 billion+ in revenues 22 Copyright2014--BrendaWells MARS, INC.
Very small--$20 million in revenues… BUT…. Thousands of files, each of which may go back 10 or 15 years. 23 Copyright2014--BrendaWells LARGE MEDICAL PRACTICE
Number of sensitive records What is in the records How much regulatory exposure exists IT security controls in place How many outside vendors have accessto the network Does the company have a ‘holistic’ approach to cyber protection? Everyone across the organizationshould beinvolved. 24 Copyright2014--BrendaWells WHAT DO UNDERWRITERS LOOK FOR?
Require the trackingof legal bills, which mount quickly Rapid assessment of whatis needed A lost phone properlyencryptedmay not requirea huge expense for notificationandrecovery. A lost thumb drivewithhighly-secretiveinformationonit can necessitate a majoreffort. 25 Copyright2014--BrendaWells CYBER CLAIMS
WHAT’S THE RISK WITH SOCIAL MEDIA? 26
….it’s SOCIAL! 27 Copyright2014--BrendaWells THE BIGGEST RISK WITH SOCIAL MEDIA IS….
Release of confidential information Especially risky in healthcare andlaw Legal and regulatory compliance violations Law isalwayschanging Identify theft or high-jacking Someone posing as you/your company, or, Stealing confidential customer data and thencommitting identity theft Liability for disciplining an employee over the use of social media (which is technically employment practices liability). 28 SOCIAL MEDIA LIABILITY RISKS 1/14/201
Use information found on socialmedia to violate EEOlaws and protected classes Use private and password protected sites without permission (Konop vs. HawaiianAirlines, 2002) Prohibit employees from criticizing employer Social media isthe “new watercooler”according to theNational Labor RelationsBoard. Employee’s comments must be meanttoimproveworking conditions, and not just theventing of individual grievances. Employees sharinga grievance? Can’t really do anything A lone employee out complaining and groaning? Maybe (Probably?) 29 WHAT EMPLOYERS CANNOT DO 1/14/201
Used social media to complain about his lackof raises Complained about his “redneck” customers, wishing they’d choke on glass FIRED. WHY? Commentswerenot a protest against actual working conditions Instead,theywerejustplain offensive 30 Copyright2014--BrendaWells FIRED BARTENDER
Off-dutyemployeewasinthe emergencyroomwhenhesawan attractivefemale. Hetooka pictureof herbacksideandposteditonFacebook. Hismessageread,"IlikewhatI like.“ Thewomanwas notidentifiedandher facecouldnotbeseen. Theemployeewhopostedthepicture was firedandso waseveryonethat likedit. 34 Copyright2014--BrendaWells SPECTRUM HEALTH (2013)
Two nurses took pictures of a patient's x-raysshowing a foreign object lodged in one of hisbody cavities. One of the nurses posted the pictures on a socialmedia site. Both nurses were fired but no charges filed because the nurse took down her social media page and no evidence of a HIPAA violation was found. The case was turned overto the FBI for investigation. 35 Copyright2014--BrendaWells YOU DID WHAT?
GOOD RISK MANAGEMENT 37
Havea written,clear socialmedia policyforemployeestofollow. It mustexplain Acceptable& unacceptable useduring workhours Rulesregardingconfidentialityof employerinformationand stakeholders in general,such as customers Clearconsequences for violationsof the policy Employeetrainingiscriticalon Cyberliabilityandwhat constitutesit Social mediariskexposures The company’s socialmedia policy Alwaysalwaysalwayshavean attorneyconsultationbefore discipliningan employeeforsocialmedia relatedactions! 38 Copyright2014--BrendaWells AT A MINIMUM…
Brenda Wells firstname.lastname@example.org www.facebook.com/insurancenerd www.ecurmi.com Phone: 252-481-2777
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