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Energy companies, critical infrastructure still exposed to threats

Energy companies face high insurance premiums over cyber security breaches - if they can get insurance at all.

Published Thu, Feb 27 2014 1:58 PM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

Utility companies are reportedly being denied insurance coverage for cyberattacks because security defenses are seen as too weak, according to a recent report.

Energy companies, critical infrastructure still exposed to threats | TweakTown.com

Cyber protection is inadequate and until it is improved industrywide, utility providers are going to be forced to pay high premiums - and security still hasn't improved - only dragging out the process further.

"I think what's behind it is the increase in threats and the fact that a lot of these systems were never previously connected to the outside world," Laila Khudari, insurance underwriter at the Kiln Group, in a statement to the BBC.

In addition to these systems never being connected to outside sources, sophisticated attacks increasingly aimed at stealing information or crippling networks are continually being tested by cybercriminals.

Private sector companies are excited to offer increased security measures for utilities and other critical infrastructure - it means dealing with confusing layers of bureaucracy, but typically yields more valuable long-term working relationships.

NEWS SOURCE:bbc.com

An experienced tech journalist and marketing specialist, Michael joins TweakTown looking to cover everything from consumer electronics to enterprise cloud technology. A former Staff Writer at DailyTech, Michael is now the West Coast News Editor and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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