American Family Insurance (“American Family”) has issued a confirmation last week that its recent IT issues are a result of a cyber attack. This information comes as concerns rise among consumers regarding the possibility of a data breach. The incident has triggered a much-needed discussion on data security and the responsibilities major companies have in safeguarding consumer information.
This confirmation is just the beginning of an ongoing investigation. Identifying the extent of the damage, and whether any sensitive information has been compromised, are the main objectives. With the incident being so recent, American Family is still in the process of analyzing the situation to gain a clear understanding of what transpired.
Given the potential severity of the attack, it’s paramount that American Family discloses the full extent to its customers and provide assurances of additional security measures that will prevent similar episodes from recurring in the future.
Ashley Shively, a partner at Holland & Knight LLP, argues that “In the era of data breaches, timely transparency is key.” She affirms that businesses should always strive to improve their cybersecurity architecture, and should not wait for a data breach to become a catalyst for action.
Data security breaches have continued to make headlines in recent years, as attackers have become more sophisticated, and the amount of stored data has increased. This event serves as a strong reminder of the ongoing challenges facing corporations today, and of the crucial role they have in protecting consumer data.
For more details on American Family’s investigation into this incident, visit here.