Podcast Introduction

Cyber hackers rob banks that are much more sophisticated than those in the days of say, Jesse James. And certainly, they’re much more intelligent than Isaac Davis who committed the very first bank robbery in the U.S. in 1798. Davis robbed the Bank of Pennsylvania at Carpenters Hall in Philadelphia, PA. He robbed the bank of over $162,000 and then deposited the funds in his own account at the same bank. Not very smart. No surprise he got busted.

Today’s cyber pirates aren’t that stupid. They attack the bank’s web application. They shut down their site for ransom with denial of service attacks. They skim credit and debit cards. They engage in privilege misuse and crime ware, for example. 

Cybercrime is a huge threat to banks. The reason we are putting so much attention and focus to it at BankBosun is the expectation that more bad guy resources will be directed at community and regional banks in the future for two primary reasons. Number one, the Willie Sutton factor. When he was asked by the FBI, “Hey Willie, why do you rob banks?” he replied, “Because that’s where the money is.” Then, a second reason – insufficient resources to prevent and detect. 

If lower net interest margins and higher regulatory burden weren’t enough, the additional expense required for cyber security risk management is enough to put you over the top.

Tune In to the Interview

Kelly Coughlin interviews Kris St. Martin, Vice President, CBIZ Insurance Services and Director of the Bank Services Program. You can listen to this very informative two-part interview at your leisure.

• Cyber Risk podcast, Part 1 - Discussion of cyber and related risks facing the banking industry, risk management and mitigation options
• Cyber Risk podcast, Part 2 - What drives premium costs and once a bank experiences a cyber intrusion, what are the actual types of costs the bank can insure? How to make sure that these costs are recoverable in an insurance claim.

For more information about cyber risk and key issues to consider with cybersecurity insurance, contact Kris St. Martin at 763.549.2267 or your local CBIZ advisor.