Ulistic Projects Blog

In April of 2018, South Carolina became the first state in the nation to require insurance companies to establish data security standards to protect consumers from the consequences of cyber attacks. The legislation named the Insurance Data Security Act, also put requirements in place for how insurance companies must investigate cybersecurity attacks. South Carolina insurance carriers have until July of 2019 to fully implement the Insurance Data Security Act. The law officially went into effect on January 1, 2019.

State legislators drafted and passed this new law in response to a series of recent attacks in the insurance industry that exposed the private demographic and financial data of millions of Americans. The 2015 attack on the insurance giant Anthem appears to be the most significant catalyst for initiating and enforcing the new regulations.

What the Insurance Data Security Act Means for South Carolina Insurers

Under the provisions of the new security act, insurance companies, agents, and all other licensed entities that conduct business in South Carolina must establish a comprehensive security program and put it in writing by July 1, 2019. As quoted from state legislation, the new security program must “commensurate with the size and complexity of the licensee, the nature and scope of the licensee’s activities, including the use of third-party service providers, and the sensitivity of the nonpublic information” within the control, possession, or use of the licensee.

Additionally, South Carolina insurers must base the company’s cybersecurity program on individual assessment of risk. Based on these results, the licensee must design an information security risk that reduces these risks as much as possible with the stated goal to completely eliminate the risks. It is the responsibility of each insurance licensee to determine appropriate measures related to the following:

• Access controls
• Cybersecurity event audit trails
• Data
• Device
• Encryption of nonpublic information at rest on removable data and mobile devices
• Encryption of nonpublic information in transit
• Multi-factor authentication
• Personnel inventories and mapping
• Physical access restrictions
• Routine system and testing monitoring
• Secure application development practices
• Secure disposal of all nonpublic information
• Systems upgrades

This is a significant undertaking for insurance companies and agents in South Carolina to achieve in the next six months. Many will find that they need to reach out to information technology specialists to help them come into compliance in the time required under state law.

Requirements for Insurance Company Director Boards

The Insurance Data Security Act not only imposes what insurers must do to implement a plan to safeguard consumer privacy, but it also dictates required actions for people with specific roles within the company as well. For example, the board of directors of each insurance company in South Carolina are personally responsible for supervising the development and implementation of the new cybersecurity program. Supervising duties of the board also include issuing a directive to senior management to produce an annual written report that contains the following information:

• A high-level overview of the cybersecurity program status and whether each agent or licensee appears to be in full compliance with the new program.
• All material matters to include individual cybersecurity events and the response to each, risk assessments, risk management decisions and controls, service provider arrangements with third parties, and results of all testing. Most importantly, senior management must recommend specific changes to the program in response to any ongoing issues they have observed that have posed a challenge to compliance.

It is crucial to the success of the new cybersecurity program that board members and senior officials with South Carolina insurance companies take their role seriously. This is the only way to ensure successful implementation of the program as well as address any early compliance concerns.

Specific Licensee Requirements under the Insurance Data Security Act

The act also spells out highly specific responsibilities for insurance licensees. For example, every licensee in the state should have produced a written document outlining a plan on how to respond to and recover from a cyber attack. This covers attacks that threaten the security of any nonpublic information that the licensee retains on his or her person or within the company’s computer information systems. These plans were due by January 1, 2019, and must contain all of the following information:

• The process of internal response to a cyber attack
• Specific goals for the prevention and response plan
• An outline of the specific responsibilities and roles of each person who has the authority to make cybersecurity decisions
• Internal and external communication and sharing of information
• Requirements for remediation
• Detailed documentation of any recent cyber attacks, including each step of the response
• Any revisions made to the plan since its original creation date or any anticipated future changes

The new law gives licensees until July 1, 2020, to create and implement a cybersecurity program with a third-party service provider. The expectation is for licensees to choose the provider using due diligence. It is the responsibility of licensees to ensure that the new service provider possesses the ability to offer administrative, physical, and technical support as required under the provisions of the cybersecurity act. This is necessary to ensure that third-party service providers protect computer systems as well as all nonpublic customer information.

Finally, the licensee must regularly monitor the work of the service provider to ensure compliance. Upon discovery of any issues, the licensee must initiate adjustments to the agreement between the two companies. The new law makes it incumbent upon every insurer in South Carolina to provide an annual compliance certification as well.

Protocol for the Investigation, Response, and Disclosure of Cybersecurity Attacks

Insurance companies, along with agents and licensees, now have only three business days after a discovery to investigate and report the events surrounding a cyber attack or event. The definition of a cyber event includes any action that resulted in an unauthorized person gaining access to nonpublic information. The purpose of the cyber attack is to disrupt computer systems to make it possible to obtain and misuse the information stored inside of them. The definition does not include any data that a cybercriminal destroyed or returned.

The Insurance Data Security Act includes a somewhat vague definition for what qualifies as nonpublic information. For example, protected data includes anything that usually receives protection under existing laws for data breach notification. However, it does not define the specific types of data.

Other information protected under this new act include any business data that demonstrates proof of unlawful tampering by an insurance licensee. This consists of any unauthorized disclosure of information, use, or access that demonstrates the licensee attempted to manipulate data for the benefit of the insurance business.

Once a licensee has determined that a legitimate cyber event occurred, it is up to him or her to initiate an immediate investigation. The investigation must include each of the following elements:

• Determining whether the incident meets the legal definition of cyber event
• Researching the facts regarding the event
• Determining whether a cybercriminal obtained any nonpublic data and identifying the customers impacted
• Promptly restoring any vulnerabilities that caused the breach of data

Both insurance licensees and third-party service providers must retain a record of all cyber events for a minimum of five years. They must also produce the record promptly when any authorized party requests to see it.

About disclosure of cyber events, a licensee must notify the Director of the Department of Insurance within 72 hours of resolving the issue. This requirement covers all insurance businesses licensed in South Carolina. Additionally, the act requires licensees to notify another government agencies or insurance supervisory boards if the data breach involved more than 250 state residents or a reasonable likelihood of widespread harm exists. The notification to the government agency or insurance supervisory board should include the following information at a minimum:

• The date and specific details of the cyber event
• The methods used to discover the issue
• The types of nonpublic data compromised
• Whether the licensee notified law enforcement, and if so, the data this occurred
• The intended steps of remediation
• A valid copy of the most recent privacy policy of the licensee
• The specific plan for investigation and notification of consumers

Other States Expect to Follow Suit

South Carolina has taken a significant step toward consumer protection by implementing this law as of January 1, 2019. Several other state legislatures are currently considering the same or a similar act, so it should come as no surprise to consumers and those in the insurance industry to see widespread adoption in the future. Even industries outside of insurance may look to the act to determine its usefulness when adapted to that specific industry.

The securities industry has been as vulnerable to cyber attacks in 2018 as any other industry. According to the SEC’s Enforcement Division newly created Cyber Unit (formed in 2017 to enhance the ability of the Commission to identify and investigate all cyber-related threats to firms), 20 actionable cases were brought forward in fiscal year (FY) 2018. 225 open investigations are also being conducted by members of the Cyber Unit at the close of FY 2018.

Firms have an affirmative duty to establish policies and procedures designed to detect and deter cyber-threats. These include both the Safeguards Rule and the Identity Theft Red Flags Rule. Failure to put in place necessary protections designed to safeguard customer information and prevent fraud may result in enforcement action by the SEC.

SEC Cyber Security Enforcement Actions

This was the case with an enforcement action taken against a Des Moines, IA-based firm fined $1 million for its failure to put in place proper cybersecurity policies and procedures. The action came as a result of a cyber intrusion that fraudulently reset customer passwords. This allowed the cyber thieves access to more than 5,600 of the firm’s accounts, which allowed new profiles to be created and specific access to private documents of three customer accounts. The failure to have in place proper procedures in keeping with regulatory requirements made what was preventable inevitable.

As the old year ends and a new one begins, what are some of the cyber threats facing investment professionals? In keeping with mandated requirements from the SEC, FINRA, and state securities commissions, what should be done to keep ahead of the growing potential of a cyber attack or unwanted intrusion that threatens customer safety, privacy, and the integrity of U.S. financial markets?

The State of Cyber Security in 2018

A recently discovered data breach of Marriott International’s Starwood Hotel guest reservation database comprised the information of nearly 500 million customers. A Federal Trade Commission (FTC) consumer advisory released on December 4, 2018, announced that the breach, which began in 2014, impacts all hotel registrations made up to September 10, 2018.

Information that hackers were able to access includes customer names, addresses, phone numbers, email addresses, passport numbers, dates of birth, and the gender of the reservationist. Additionally, any Starwood loyalty program account information and reservation information entered was taken and for some customers, payment information (and possible expiration dates).

The compromise of Starwood customer information by hackers is just the tip of a very tall iceberg of incidents that took place in the U.S. and across the globe. Cybersecurity issues touched nearly every industry sector and business size, from Texas-based Jason’s Deli to social media giant Facebook. State-sponsored attacks have also been exposed in 2018, validating concerns about the integrity of the U.S. election process and the continuing influence of bad-faith actors such as Iran, Russian, and North Korea.

Those issues affecting business worldwide are those that affect financial professionals and the securities industry. Efforts must be taken to tighten up required controls that detect and deter cyber attacks. Paying lip service to these issues will result in the loss of customer confidence as further attacks expose vulnerabilities.

Cyber Security Issues for 2019 Affecting Financial Professionals

There are at least four specific cybersecurity issues that financial professionals should be aware of heading into 2019:

• Testing a firm’s cybersecurity policies and procedures to ensure
• Leveraging technology to police technology
• The impact of artificial intelligence by hackers to access client accounts and information
• The growing influence of the “Dark Web” and the exposure of personal and private information

These issues may be of particular concern for financial professionals looking to maintain strong customer relationships. Awareness of the potential for attack must be met with definitive action to strengthen systems and hold back minor and major intrusions that could have a long-term effect on business and the confidence the investing public has in the U.S. financial system.

Establishing and Testing an Investment Firm’s Cyber Security Policies and Procedures

The SEC noted in its enforcement actions taken against firms in 2018 that failed to protect client data that the failure stemmed from the lack of sufficient cybersecurity policies and procedures. Such policies and procedures are only one part of the solution to building robust IT systems capable of withstanding dedicated cyber attacks.

In addition to well-documented policies and procedures specifically tailored to the financial systems, firms and financial professionals must also work with their IT teams to test their ability to detect, address, and defeat cyber attacks. The loss of customer information to a data breach through a system vulnerability that could have been prevented hurts not only the entity breached but the industry as a whole.

As firms increasingly rely on technology to conduct business, greater reliance must be placed on constant vigilance. The mentality cannot be that since an attack has not occurred, there is no problem; it must be that an attack may happen at any time.

Using Technology to Defeat Technology

Cybersecurity issues cannot be regulated away. The establishment of policies and procedures, as discussed, is one of the ways to identify the severity of these attacks and their potential impact on business. Working on using technology to prevent technology from causing cyber attacks and other unwanted intrusions is the next level for financial professions.

It stands to reason that these attacks are the result of machines finding ways to invade other devices. This may be to spread viruses that cripple or disable a recipient system for a period of time, or to disrupt business operations by denying access to customers, or to set in motion ransomware or other types of malware for the purpose of extortion. Policies and procedures establish recognition of the potential for harm but technology sets in place the necessary firewalls and disaster recovery processes for business to continue operating (with little to no disruption).

Artificial Intelligence

Machines, currently through the aid of those with ill-intent, lead the attack on financial systems, threatening the privacy of customer data. Artificial intelligence (AI) or the ability of machines to develop routines and learning processes that make devices less dependent on human input is also growing as a potential threat.

Facebook confronted this issue in the summer of 2018 when its Facebook AI Research Lab (FAIR) was forced to shut down a project involving the use of AI known as chatbots. Chatbots are a type of AI where programs that are automated to complete a specific task can communicate with each other to make the routine more efficient. The FAIR project attempted to add a negotiation element between the chatbots, which to the horror of researchers, resulted in the AI developing its own language at a rate that was faster than what humans could anticipate and control.

The growing presence of AI in technology and the use of robots, specifically chatbots, to complete basic tasks may very well be the way of the future. Its existence, however, should raise legitimate concerns and warrant additional protections and regulatory action to ensure that the results of an accidental experience (like the outcome of the FAIR project) does not set in motion a sponsored attack that could have the potential of taking down the U.S. financial system in 2019 (and beyond).

Amazon is a gigantic player in online sales. It’s estimated that the Seattle-based online e-commerce site will be responsible for roughly 50% of all digital sales during the 2018 holiday season, one of the busiest shopping times of the year in the United States. In other words, one out of every two people shopping during the holiday season will buy something from Amazon.

But Amazon’s very ubiquity has made it a tempting target for cybercriminals and thieves. It’s also widely trusted by consumers, who benefit from the online retailer’s wide choice and speedy deliveries. As a result of the many sales made through Amazon and the trust it has engendered among its customers, scam artists are targeting Amazon shoppers.

A Scam That Sends Fake E-Mail

The most recent scam sends an e-mail to an Amazon shopper telling them that their password needs a reset. One of the most notable elements of the scam is that the e-mail looks very official, using Amazon’s logo. It tells the targeted Amazon shopper to enter their Amazon user ID and new password directly from the e-mail.

But it isn’t Amazon that receives the new password. It’s the cyberthieves who set up and sent the e-mail. Once the target enters the information in response to the scam e-mail, the cyberthieves have the information to their Amazon account.

The thieves often set up Amazon gift cards for themselves, so that they have cash to be spent on Amazon. The gift cards are sent to their e-mail accounts, so they can use it before any theft is noticed. If the target customer has a credit card or debit card associated with their Amazon account, as most people do, the scam artists may shop until the cards are maxed out.

There are several variants to the scam. Sometimes, the cyberthieves set up the e-mail to say that new shipping information is needed or that there is a problem with an existing order.

But in all cases, a crucial element is the same. The e-mail looks official, and asks that the customer’s ID and password be entered directly from the e-mail. Entering it from the e-mail is what allows the cybercriminals to capture the user’s information and use it for themselves.

What Amazon Customers Should Do

Amazon customers need to be aware of the scam. They should never enter any of their account information in response to an e-mail about a problem with an Amazon order. For that matter, they should never enter any account information, of any type, in response to any e-mail, including debit card or credit card information.

If you get an e-mail like this, log out of your e-mail and log in to your Amazon account directly from the company’s web page, www.amazon.com. That page always has up-to-date information on your account and your orders. Customers will be able to see if there is any concern with their orders or shipping address.

If customers do need to change their log-in information, they should always do it directly on the Amazon site, not in response to an e-mail.

Finally, the Amazon site has a “take action” section on their website giving direct information on how to handle suspicious e-mails and scams by cyberthieves purporting to be Amazon. To access the section, click here.

The latest scam is easy to protect against. Customers should never respond to e-mails that look as if they’re from Amazon but always go directly to the Amazon website.

As small business owners rely on IT more than ever before, a growing number are turning to managed service providers to obtain the high-tech IT infrastructure, software and assistance they need to be successful. At the same time, there are many entrepreneurs and small business owners who don’t fully understand how managed IT services work and how they can propel a business forward. Following are five extremely important facts about managed IT services that will enable one to make wise decisions regarding when and how to use them.

Managed IT Services Save Time

Most small businesses can’t afford to hire a full-time IT technician. This means that, more often than not, regular employees must deal with IT problems. Because the average employee is most likely not an expert IT technician, it could take hours or even days to resolve serious IT issues. What is more, it is all too easy for an employee to make a mistake that results in downtime, a security breach or some other serious issue.

Working with a managed service provider saves time because MSP companies can prevent many IT issues in the first place. Companies offering managed IT services use only the best equipment and this equipment is monitored by experts to ensure that everything is working as it should at all times. In fact, most managed service providers offer a 99.9% uptime guarantee. If something does go wrong, a small business owner can count on immediate, expert assistance to get things running again. This frees staff members to handle other essential jobs such as sales, advertising and customer service, enabling your business to grow as it should.

Managed IT Services Save Money

Can working with a third-party IT service provider actually save money? A lot depends on which IT service provider is used and what services are purchased; however, for the most part, companies that use an MSP save a considerable amount of money. In fact, recent statistics indicate that small business owners can reduce IT costs by up to 40% by working with a managed service provider.

There are several reasons why managed IT service providers are so cost-efficient:

• Small businesses that use an MSP don’t need to invest in their own equipment and then update the equipment periodically as the IT service provider handles this expense.
• Small business owners who work with an MSP don’t have to take on one or more extra employees; this saves money that would have otherwise been spent on salaries and benefits.
• IT service providers offer scaled services, making it possible for business owners to adjust IT spending by the company’s needs and budget.

Managed IT Services Boost a Business’ Security

Many small business owners have discovered that, contrary to popular misconception, they are prime targets for cybercriminals. Because small businesses are less likely to have strong security, hackers go after them regularly to obtain valuable customer and business data or to hold files hostage in exchange for a ransom.

Thankfully, small businesses can now obtain top of the line security at a very reasonable price by working with a third-party IT service provider. IT service providers use up to date security programs and procedures to protect company files from unauthorized intrusion. Furthermore, many offer employee training that can prevent common cyber crimes such as phishing and malware attacks.

Getting Help from the Experts

IT technology is continually improving. Hardware and software that was up to snuff a few years ago are now outdated. Naturally, most small business owners don’t have the time to keep up with technology changes that affect their industry. However, IT service providers do have the time and ability to not only stay abreast of recent developments but also invest in the newest equipment to provide the best possible service to their clients.

Additionally, IT service providers know how to handle any IT-related challenge you may face. If you experience downtime, are having trouble accessing your files or need help creating a secure internal communications plan, your IT service provider is available to provide immediate assistance. Many MSPs even offer 24/7 assistance to ensure that you get the help you need, when you need it.

Taking Advantage of Customized Service

There are many IT service providers for small business owners to pick from, making it possible for just about anyone to find the company that best suits his or her business’ needs and budget. In fact, there are even managed service providers that specialize in offering IT services to niche industries such as healthcare.

Managed service providers also offer flexible service options. A business owner can:

• Use a managed service provider on a one-time basis
• Hire a managed service provider to handle periodic tasks such as providing online customer service during holiday seasons and/or training employees in IT security and management
• Delegate certain IT jobs to an IT service provider while managing others in-house
• Have an IT service provider handle all IT-related work for the company

Managed service providers are well worth the cost. They have much to offer any company and small business owners who work with MSPs often find that they can save money, increase efficiency levels and serve customers better than ever before. Any small business owner who wants to boost his or her business may want to seriously consider the benefits of teaming up with an IT service provider and then do some research to see which exact managed service provider is the best fit for the business.

Technology is changing the face of almost every industry, and anyone who can’t keep up will be left behind. The United States has far more STEM jobs than qualified applicants to fill them, with the need growing steadily. Just in 2016, there were about 3 million jobs which couldn’t be filled because there weren’t enough people with the right education and skills. Businesses and schools are working hard to find ways to meet the technology gap, with programs encouraging students from a young age and scholarships for STEM majors.

When workers can’t adapt to the new environment, they won’t just be denied new and better opportunities. They will be stuck in whatever menial, low paying jobs are left, and there may not be enough of those if those when so many are automated.

The New Jersey Institute of Technology

NJIT has been working to provide the educational credentials with the necessary experience so graduates will be prepared to step into high paying tech positions. Students are well versed in aspects of various industries while learning necessary technology skills, such as maintenance, processing control and manufacturing. NJIT students get offers before graduation and earn 20% more than many of their peers.

The Growth of Automation

The increasing use of technology in every aspect of business is paralleled by the astronomical growth in automation. NJSpotlight.com predicts that as many as half of all jobs will be automated as soon as two short decades from now. Governor Murphy has made a promise to help support workers during this time of upheaval, and has set up a task force to evaluate possible upcoming changes.

By making a proactive plan, Governor Murphy hopes to protect the interests and livelihoods of the New Jersey workforce. He also wants to help prepare for the upcoming changes in the various industries which will be impacted.

Changes to the Economy

The automation task force is part of Governor Murphy’s economic plan. As the leader of the state, he wants to avoid unemployment and underemployment for New Jersey residents. Instead, he wants to find creative ways to help residents succeed in the new economy. One idea is lifelong learning accounts, which would allow residents to achieve new credentials and skills so they could become qualified for every changing STEM jobs.

One way Governor Murphy is trying to help New Jersey residents is by raising the minimum wage significantly. One of his top campaign promises was to raise the minimum wage to $15 per hour by 2021, and the change is being enacted incrementally. Although those changes aren’t happening as fast as he wanted, a higher minimum wage will help ensure that residents will continue to be able to earn their living even with a lower technology job.

Changes in Job Types

Studies predict that there will be more computer jobs, automation, robots and other technologies which will replace or enhance many current jobs. It is simply more cost effective to have a machine perform many tasks, and the newer technologies have other advantages like accuracy and safety. A job which might be dangerous for a human may be safely done by a robot.

Many jobs have already disappeared, or at least declined significantly. It is easy to see, even though the changes seem gradual. Cashier jobs and gas station attendant positions were replaced by automatic checkout and “pay at the pump,” leading to open worry and discussion by residents who were worried about losing their own jobs to technological changes.

Retail salespeople and cashiers are the most in danger of losing their livelihoods, and the United Way predicts that there is a 90% chance of those positions disappearing. Other jobs which could be on the chopping block include sales representatives, movers, janitors and health aides.

Preparing for the Future

Many people are anxious, even if they personally have the training necessary to get one of the best new tech jobs. When there is so much change, and it seems to be happening so fast, people can feel uncertain about how the changes will affect them and their own position.

Governor Murphy’s task force is predicting huge changes by the year 2025, and his focus is on innovation and change. When one door closes, another opens; the loss of some jobs means merely that other jobs will be created to help with the new way things are done. If everyone works together and focuses on the end goal, the end result will be a steady rise in employment and residents in good-paying technology jobs.

Users around the world have been receiving bitcoin extortion emails for a long time, one of the most notorious being a “sextortion” threat to show a computer-eye view of you watching adult videos to the world. The latest threat is more alarming: the sender claims to have a bomb planted at the recipient’s business. Financial institutions in New York began receiving bomb threat emails demanding payment of $20,000 in Bitcoin in early December.

New York City Police warned via Twitter that they were monitoring multiple bomb threats on December 13 and reports soon came in of threats emailed to Philadelphia, Las Vegas, Huntsville, Alabama, and Columbus, Ohio.

The subject line of most of these bitcoin scam emails is: “I advise you not to call the police.” Some emails received in Canada came with a subject line of “Think Twice.”

One copy of the email, which has been sent to multiple recipients, reads:

“My man carried a bomb (Hexogen) into the building where your company is located. …. I can withdraw my mercenary if you pay. You pay me 20.000 $ in Bitcoin and the bomb will not explode, but don’t try to cheat – I warrant you that I will withdraw my mercenary only after 3 confirmations in blockchain network.”

KrebsOnSecurity describes the emails as extremely disruptive spam. The emails have been received by thousands of governmental organizations, businesses, educational, and health care institutions around the world.

Hexogen is a chemical term for RDX, the explosive component in the military plastic explosive C-4.

What To Do If You Receive A Bitcoin Bomb Threat Email?

The National Cybersecurity and Communications Integration Center (NCCIC) released a bulletin about the emails on December 13. NCCIC recommends that if you receive the email:

• Do not respond or try to contact the sender.
• Do not pay the ransom.
• Report the email to the FBI Internet Crime Complaint Center or the local FBI Field Office.

What Are The Risks With Bitcoin Bomb Threat Emails?

Bitcoin bomb threat emails are an obvious extortion scam. No bombs have gone off in any location where the threats have been received.

The scammers aren’t completely unsophisticated, although the threats are poorly-worded and no hacking is involved. Each email security experts have examined uses a different Bitcoin address to send the demanded payment. This is not quite as convincing as the “sextortion” emails, which included a real password that targets had used at some point in the past.

Paul Bischoff, a privacy advocate with Comparitech.com, said: “even though bomb threats are scary, this is amateur scamming.”

After multiple evacuations, the FBI and local police have failed to find any explosive devices. Most law enforcement officials termed the threats “not credible.”

The likelihood of a bomb being present in any building receiving the threat is low.

What Are The Real Costs Of The Bitcoin Bomb Threat Emails?

Scams like the “sextortion” emails and the rash of Bitcoin bomb threats threaten to dull awareness to concrete security threats. They also demand attention and safety precautions even though they are nearly 100% certain to be fake.

Multiple threats received in Toronto brought police out around the city and shut down the King subway station. Schools and colleges in New York and several other U.S. cities shut down early after receiving the threats.

The Bitcoin bomb threat extortion likely yielded no cryptocurrency for the scammers. Costs in law enforcement investigative time, lost instructional time at closed schools, and lost business at commercial locations which were forced to shut down add up to far more than what the scammers could hope to obtain from recipients who don’t follow NCCIC’s instructions.

Unlike the “sextortion” scams which were alarming but personal, Bitcoin bomb threat emails to organizations have to be taken seriously enough to confirm that employees and customers — or students, faculty and hospital staff and patients — are safe from harm.

The identical, amateurish emails are sent to thousands of targets, so in one sense, there’s safety in numbers. It’s highly unlikely any email scammer could plant C-4 explosives in thousands of locations around the world.

Bitcoin email bomb threats are very unlikely to be serious, real bomb threats, yet no organization can afford to take a bomb threat lightly. As long as they continue, they will remain a costly and aggravating nuisance.

Outsourcing IT services involves hiring third-party IT companies or specialists to handle IT-related tasks. A growing number of companies are opting to outsource their IT department to experts who can fully focus on a company’s IT needs while company employees concentrate on promoting the company’s goods and/or services, generating sales, providing customer service and other essential tasks.

There are numerous outsourcing business models to pick from, enabling a company owner to select the best option to meet his or her company’s specific needs. Some companies opt to outsource one-time IT tasks and then handle their regular IT tasks internally. Other business owners have found that outsourcing some ongoing IT jobs while keeping others in-house is the best option while still other businesses opt to outsource their entire IT department to a reliable third-party service.

What IT Tasks are Typically Outsourced?

Almost any IT job can be outsourced, but some are more frequently outsourced than others. These include:

• Website design, development and hosting
• Technical support for company staff members
• IT security, including the provision of back-up and recovery services
• IT training for in-house employees
• Helpdesk services
• Network management
• Application and database development
• Telecommunication services
• Cloud storage

What are the Benefits of IT Outsourcing?

Companies that specialize in offering outsource IT services have trained, experienced experts who can handle a company’s IT issues quickly, efficiently and with relative ease. The ability to obtain expert services without having to pay for and train fulltime workers enables many companies to save money that can then be used to generate revenue and/or attract investors.

IT outsourcing enables a company to use cutting-edge IT equipment and technology without having to regularly update computers and software programs to stay in step with new technological developments. What is more, outsourcing saves time because business owners do not have to learn about IT hardware and software options; instead, IT management is handled by those who have the skills needed to make wise, well-informed decisions.

Many companies that handle outsourced IT jobs offer scaled services to enable business owners to select the services that meet a company’s needs at any given time. A business that needs more cloud storage space, for instance, would simply need to rent this space from its IT service provider. An entrepreneur who needs additional customer service assistance on a seasonal basis can obtain it by asking the IT company to assign more representatives to his or her business for a particular period. Conversely, a company can easily eliminate specific IT tasks without having to lay off employees and/or sell IT equipment.

IT outsourcing also improves IT security. Third-party service providers stay abreast of IT security developments and can help any company to prevent malware and ransomware attacks, breaches and other issues that would slow services and damage a business’ reputation. Furthermore, IT experts can train a company’s employees in IT security issues such as proper email management, internal and external communications procedures and file storage and backup procedures.

However, the best reason for a company to hire outside experts to handle a company’s IT services is that proper IT management can mean the difference between success and failure for any business in any industry. Just about every company relies on IT technology to manage customer databases, track inventory, manage company websites and other integral tasks. This technology needs to be regularly maintained, checked and updated by an expert whose sole job is to keep IT operations running as they should. Dedicated third-party IT service providers are experts in their field who can keep any company’s IT department running at optimum speed and efficiency levels. Without their help, it would be impossible for many business owners to stay a step ahead of the competition. This is particularly true for small to medium-sized businesses that cannot afford to hire experienced, full-time IT workers.

Are There Any Disadvantages to IT Outsourcing?

While IT outsourcing has much to offer any business, there are some pitfalls that business owners need to be aware of when choosing an IT service provider. These include:

• Hiring a company that is based overseas. IT offshoring may result in language and cultural problems as foreign IT professionals who aren’t familiar with a company’s business model will need training in how to adequately handle company data, equipment and/or services. Furthermore, time zone differences can make it hard for a company’s employees to communicate with overseas IT personnel as needed.
• Choosing a company that does not have the expertise needed to take on specialized IT services. Healthcare organizations need to work with an IT company whose technicians are familiar with local compliance regulations. Companies offering legal services will require an IT company that specializes in legal matters.
• Picking an IT service provider based on price rather than the quality of service offered. A good IT company will offer an uptime guarantee. Furthermore, it will offer in-house assistance rather than outsourcing its own services to contractors.

Is outsourcing IT services to a third-party provider a good idea? Many business owners have found the answer is a resounding yes. The advantages of outsourcing far outweigh the disadvantages. Even so, it is important to choose an IT service provider with care. Doing so will enable a company to obtain the best possible assistance both now and in the future.