Anyone Can Get Hacked

You get an email from one of your post-production facilities, saying that your last payment didn't go through correctly. The email came from a legitimate source, and you trust what they're sending you. As you click on the document, nothing happens. Or so you think. Many different types of malware don't even do anything that appears harmful to your computer, at first. However, once the initial script is downloaded, it communicates with a command and control server. Additional malware is then placed. You could be operating normally for months after, while the malware is gathering your data and building a profile of you and your operations. Then one morning, while booting up, your system is frozen, your data appears to be gone, and you're asked to transfer funds to get your system unlocked. You've become the victim of a ransomware attack.

Imagine the all-nighters, the lack of sleep, the microwaved spaghetti eaten while editing, the shuttling of cast and crew back and forth to locations in the middle of nowhere — only to find the fruits of all that labour now locked behind virtual bars. And that's just one version of a potential malware attack.

Phishing and Social Engineering Are on the Rise

Phishing and social engineering attacks are, unfortunately, gaining popularity. Twitter was the victim of a massive social engineering attack in which employees with access to internal systems and tools were targeted, causing some of the wealthiest people in the world to have their accounts hacked. What looked like legitimate philanthropic posts — suggesting followers donate to charities using bitcoin — actually linked to a false address, resulting in over $110,000 USD sent by people simply trying to do good deeds. The breach caused a major loss of revenue and put Twitter in a potential liability position.

Simple Security Best Practices

There are simple things that should always be best practices when it comes to your security:

• Change your password often, and make it hard to guess
• Don't reuse the same password across sites and logins, and never share it
• It's important to hit "save" while you work — but just as important to back up your data frequently, which makes it far easier to wipe and reinstall a system if you need to
• Keep firewalls and software patches up to date
• Make sure your Wi-Fi is secure, and use VPNs (Virtual Private Networks)

Big Targets and Real Consequences

Long gone are the days of a Nigerian prince telling you that you're descended from royalty and would like to transfer your inheritance to your bank account. Sony Pictures was the victim of a major attack in 2014 — an entire film was leaked, along with personal information and emails from executives, scripts and plans for unreleased films, and other sensitive information. On December 15, 2014, a class-action lawsuit was filed against Sony Pictures Entertainment on behalf of former and current employees affected by the breach. Legal defence fees in a normal case can add up to thousands of dollars, and if you get sued, those fees still have to be paid upfront. Cyber insurance covers those costs.

Small Companies Get Hacked, Too

Small companies and burgeoning filmmakers can get hacked just as easily. At one independent distribution company, an employee found one of their latest releases appearing on a bootleg site through a Google search. In the attempt to verify it was their film, they clicked the link — and instantly, ransomware was installed on the company laptop. Luckily, a cyber response team was already in place, which immediately isolated the computer, launched a forensic investigation to ensure nothing else was compromised, then cleaned, recovered and reinstalled the regularly backed-up data. Most of us don't have that luxury — but having cyber coverage makes that team available to you.

So What Do You Do If You've Been Hacked?

Do you pay the ransom? It could be $500, $5,000, or even $50,000. What if you don't get your data back? Who's going to help you recover your files? Are you sure the malware or ransomware is gone and your system and data are now safe? If you're working on someone else's film and you lose their data due to a hack of your system, are you liable for the loss of their data and their potential lost revenue if the film is delayed? Whether you are or aren't, you can still get sued.

What happens if you're selling your film or merchandise on your own website? Do you have a mailing list? If you're hacked and that data is stolen, you could be liable for a privacy breach — and by law, you're required to notify your customers of a breach of their personal information, and could be held responsible. Cyber insurance policies can cover cyber hacking, cyber security, cyber liability, and lost income from business interruption. They'll also pay for data recovery, investigation, and even the ransom itself.

Coverage That Fits Your Needs

Cyber insurance policies can vary to suit your needs — from a professional cyber response team to guide you through the process, to legal consultants should a liability issue arise. Breach notification, credit monitoring, forensic investigation, defence costs, and the costs of judgements or settlements all add up quickly. Don't pay out of pocket when a simple policy could have covered it. Cyber insurance is an easy way to make sure you're prepared and able to get back up and running as fast as possible.

Speak to one of our team at McCAM Insurance and find out what we can do to make sure you're protected.