Cybersecurity Fears Cause Friction Between Cyber Insurance Companies and Online Casino Operators
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There are more than 3,000 online casinos in the U.S. alone. Cybersecurity concerns are causing a friction between cyber insurance companies and online casino operators. Clubmillion, a popular gambling app that hosted their data on Amazon Web Services, suffered a breach in March 2020.
Cyber attacks are a constant threat for the security of data infrastructures. Cyber insurance companies have dumped many land-based casinos because of the rise in cyber attacks.
There are cyber security threats for every form of gambling in the U.S. including native Indian casinos. In a virtual cyber-security summit hosted by TribalHub, Lance Erwin, the vice-president of the enterprise risk management and operations department for the San Manuel Band of Mission Indians confirmed the security fears of attendees.
Cyber threats are increasing. Online casinos hold sensitive data. Cyber insurance companies are reluctant to offer them safety nets.
Cybersecurity threats have increased by more than 1,000% in 2021 compared to 2019. The average risk insurance payment is up 82% in one year.
Insurance companies are reducing the amount they're willing to insure. Originally, casino operators were able to cover damages up to $25 million. Now, the figure is down to about $10 million, and some insurance companies offer as low as $5 million for insurance coverage.
The current insurance deductible is around $250,000. Online casinos' willingness to quadruple that amount won't be enough. Insurance companies would have to increase the deductible to $2 million.
Tim is a digital marketer with a deep passion for technology. He's studying computer engineering for the fun. Tim loves to swim, play video games, travel and read books.
