Insurance agencies and brokerages are frequently targeted by cyber attacks, largely due to the high concentration of sensitive personal and financial data they handle. Security consultants - experienced certified specialists have analysed personal experience in cybersecurity auditing insurance companies, agencies and brokerage services, as well as the latest trends in the field of security. Knowing your potential weaknesses and being able to respond with relevant measures in the long term is what this article will teach you. Below are 10 of the most common digital vulnerabilities encountered in this sector, along with their types and suggested preventive measures:

1. Ransomware Attacks

   Ransomware remains a critical threat. Cybercriminals encrypt sensitive data and demand payment for its release. One brokerage service experienced a ransomware attack where its client data was held hostage, leading to significant downtime and ransom payments. A notable evolution is double-extortion, where hackers not only encrypt data but also threaten to leak it if ransoms are unpaid. Insurers face operational halts and reputational damage if left unprotected.

2. Phishing and Social Engineering

   Phishing attacks—emails designed to trick employees into providing credentials—are rampant in the insurance industry. A well-known case involved a brokerage firm that suffered a breach due to an employee falling for a phishing email. As a result, client data was accessed, leading to lawsuits and client distrust

3. Supply Chain Attacks

   These occur when cybercriminals target a third-party vendor that provides services to an insurance company. For instance, an insurer was compromised when their vendor’s software was hacked, allowing attackers to infiltrate their systems. The incident exposed sensitive client information, demonstrating the danger of weak vendor security practices.

4. Insider Threats

   Whether intentional or accidental, employees can be one of the greatest cybersecurity risks. There have been multiple cases of employees at insurance agencies accidentally exposing sensitive information, leading to regulatory fines and client mistrust.

5. Unpatched Vulnerabilities

   Unpatched systems are a goldmine for hackers. Common vulnerabilities, such as **CVE-2021-34473** in Microsoft Exchange or **CVE-2022-30190** affecting Microsoft products, have been exploited to gain unauthorised access. In one case, a breach occurred because the agency failed to patch outdated software, exposing client records.

6. Third-Party Software Exploits (Log4j)

   The infamous Log4Shell vulnerability, which affects the Log4j logging library, was exploited in several industries, including insurance. In one case, an agency’s web application using Log4j was breached, allowing attackers to access and exfiltrate large amounts of customer data.

7. Business Email Compromise (BEC)

   Cybercriminals impersonate executives or trusted partners to trick employees into transferring funds or sensitive data. A high-profile case involved a fraudulent wire transfer after attackers gained access to the email account of a brokerage firm’s CFO. This type of attack often leads to financial loss and legal issues.

8. Weak API Security

   As insurance agencies increasingly rely on digital platforms, insecure APIs (application programming interfaces) have become a target. One brokerage suffered a breach where hackers exploited weak API security to access customer data through an online portal.

9. Credential Stuffing

   With the prevalence of reused passwords, attackers use stolen credentials to access systems. An insurance agency faced a significant data breach when hackers used previously stolen credentials from other breaches to gain access to their customer accounts.

10. Cloud Misconfigurations

    Cloud services are widely used, but misconfigurations often leave sensitive data exposed. In one instance, an insurer accidentally left a cloud database unprotected, leading to a breach that compromised thousands of client records.

How can insurance agencies and brokerages take care of the cybersecurity of their systems and sensitive data?

Preventive Measures for Insurance Agencies and Brokerages

To prevent these types of incidents, insurance agencies and brokerages should consider the following actions:

1. Regular Software Patching

   Ensure all software and systems, including third-party tools, are consistently updated to mitigate vulnerabilities like Log4Shell.

2. Employee Training

   Invest in ongoing training to prevent phishing and social engineering attacks. Employees should learn to recognize and report suspicious emails or requests.

3. Multi-Factor Authentication (MFA)

   Implement MFA for all systems, especially for email and financial accounts, to reduce the risk of BEC and credential stuffing.

4. Zero-Trust Framework

   Adopting a zero-trust architecture ensures that no one, inside or outside the organisation, can access data without proper verification.

5. Vendor Risk Management

   Conduct regular security assessments of third-party vendors to mitigate supply chain risks.

6. Cloud Security Audits

   Regularly audit cloud configurations to ensure they align with best practices, such as encrypting sensitive data and restricting public access.

   Vulnerability	Causes	Preventive Measures
   Business Email Compromise (BEC)	Fraudsters impersonating executives or trusted partners to manipulate employees into transferring funds or sharing information.	Multi-factor authentication (MFA), employee training on phishing scams.
   Ransomware	Hackers targeting insurance firms to encrypt sensitive data, followed by ransom demands.	Regular data backups, updated antivirus software, employee awareness programs.
   Insider Threats	Employees or contractors misusing access to sensitive data for malicious purposes (e.g., identity theft).	Strict access controls, monitoring insider activity, using data loss prevention tools.
   Phishing Attacks	Phishing emails tricking employees into revealing credentials or downloading malware, leading to larger attacks.	Continuous employee training, email filtering systems.
   Cloud Security Misconfigurations	Misconfigured cloud services exposing sensitive data to unauthorised users.	Regular security audits, encryption for cloud-stored data.
   Third-Party Software Vulnerabilities	Integration of third-party software with security flaws, allowing attackers to exploit them and access sensitive data.	Regular patching and updates, penetration testing of integrated systems.
   Weak Passwords	Use of weak or reused passwords, easily cracked by hackers.	Strong password policies, enforcing MFA for critical accounts.
   Lack of Cyber Asset Management	Poor asset management, including unpatched or outdated systems, leading to exploitable gaps for attackers.	Regular updates, inventory of all digital assets, decommissioning or securing legacy systems.
   Data Exfiltration	Attackers stealing sensitive data, including client and financial information, and selling it on the dark web.	Encryption of data in transit and at rest, monitoring of outgoing traffic.
   Supply Chain Attacks	Vulnerabilities in third-party providers exposing confidential information of insurance agencies.	Thorough cybersecurity audits of third-party vendors, enforcing stringent security standards.

An additional measure to stay in the cybersecurity field for Insurance agencies and brokerage services is to periodically change the supplier of cybersecurity consulting.

Dhound team offers a comprehensive range of services specifically designed to enhance the cybersecurity posture of insurance agencies and brokerage services.