About Emily Holbrook

Emily Holbrook is a former editor of the Risk Management Monitor and Risk Management magazine. You can read more of her writing at EmilyHolbrook.com.
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Global Hacking Scheme Broken Up

virus keyboard

Spanish officials are calling it the world’s biggest network of virus-infected computers. That’s right — 13 million computers were hacked and infected with a program that allowed for the theft of personal and financial data of unwitting citizens worldwide, in what investigators have termed the “Mariposa botnet.”

The culprits? Three Spaniards, ages 31, 30 and 25 who were arrested last week in Spain’s northern Vizcaya province. During a search of their homes and computers, police found personal information from more than 800,000 users.

The suspects “copied personal and financial data of individuals, companies and official institutions in more than 190 countries,” the Civil Guards’ statement said. In addition to gaining illegal access to personal and financial information, the virus would have permitted those controlling the system to mount a large cyberattack from the infected computers, a U.S. official said.

Apparently, the hacking was first detected in May by Defence Intelligence, a Canadian firm that develops software to monitor incoming and outgoing transmissions of every computer on a corporate network.

The botnet [or, a network of computers infected with a virus that can be controlled remotely without owners’ knowledge] included infected machines inside the offices of more than 40 major banks and a vast majority of the top companies on the Fortune 1000 index. Since its creation, Defence Intelligence has identified and helped to protect its customers against dozens of botnets and malicious software programs — with Mariposa botnet being the jewel in its crown.

Authorities are searching for a fourth suspect in this massive cybercrime. “Juan Salon of the Spanish Civil Guard’s cybercrime unit told reporters Wednesday investigators have learned the suspect’s Internet handle and that this person might be Venezuelan.”

Chilean Earthquake Insured Losses Could Top $8B

DailyFinance.com is projecting that the recent 8.8 magnitude earthquake in Chile could cause insured losses anywhere from billion to more than billion.

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The quake struck February 27th and is now believed to be one of the top 10 most powerful earthquakes ever.

Catastrophe modeling company EQECAT Inc. said insured damages from the quake could range from $3 billion to $8 billion, with economic losses ranging from $15 billion to $30 billion. Economic losses will continue to be updated as the ongoing assessment of infrastructure damage is confirmed. The company also said the speed of restoration of the transportation and utility networks will also determine the total amount of business interruption losses claimed.

Effects of the earthquake stretched from 115 miles north of the industrial city of Concepcion to the capital of Santiago — more than 325 miles away from the epicenter.

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“AIR Worldwide estimates that the value of insurable buildings in the quake zone is $275 billion, but very few of the structures are likely to have been insured. The company said that as little as 10% of residential buildings are believed to have been insured and about 60% of the commercial structures were insured.”

The Haitian earthquake and Chilean earthquake differ drastically in terms of insurance. Though the earthquake that struck Chile was approximately 500 times as powerful as the one that struck Haiti, Chile will recover more quickly because of it’s highly developed insurance market. In an article release today, Robert Hartwig, president of the Insurance Information Institute (I.I.I.) said that “in addition to a number of Chilean insurers, many large international insurers and reinsurers—mainly American and European—compete for business in that country, and will provide the financial resources for Chile’s reconstruction.” He contrasted the situation to that in Haiti, an area that Hartwig said has almost no private insurance market.

The I.I.I. shows the following table, titled the “10 most costly U.S. earthquakes (in millions).”

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In the March issue of Risk Management, our editor, Jared Wade, takes an in-depth look at the catastrophe in Haiti and the future of natural disasters. A good read, I must say.

March Issue of Risk Management Now Online!

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Faithful readers — it’s the moment you’ve (maybe?) been waiting for since last month’s issue of Risk Management was put online. The March issue is now available here.

Within it, you’ll find features focusing on Haiti and the future of disasters, brain injury recovery, ERM challenges and CEO succession planning.

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Also available are articles covering the compensation controversy, airport security, data hoarding and much more.

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Check out the digital edition, which offers stunning graphics and all the pleasures of the print edition right there on your computer screen. Please let us know if you have any questions or comment.

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Thanks for reading.

Facebook Posts + Tweets = Possible Lawsuit

You may remember back in May when a Chicago resident tweeted about her property management company being OK with moldy apartments. That resident, Amanda Bonnen, was subsequently sued by Horizon Group Management for publishing a false and defamatory tweet on Twitter May 12.

The tweet read: “Who said sleeping in a moldy apartment was bad for you? Horizon realty think it’s okay.” Those two sentences sparked the suit in which Horizon sought $50,000 in damages, mostly reputation-related. The case was eventually dismissed this past January, with the judge claiming the tweet was “too vague to meet the legal standards of libel.”

Though it was dismissed, this one lawsuit opened the door to Twitter-related legal action. Soon to follow? Most likely lawsuits related to Facebook posts. Not only can tweeting or posting about another company get you in trouble, doing the same about the company for which you work can also pose a risk. As an article on MainJustice.com states:

“Our board members are talking about things like Facebook and Twitter, so we are definitely paying attention to social media,” said Haydee Olinger, the chief compliance officer for McDonald’s Corporation. Grace Renbarger, the chief ethics and compliance officer for Dell Computer, said she is constantly worried that something her employees say on Facebook or Twitter could hurt the company. “You don’t want people out there saying things that could be attributed to the company for liability purposes,” Renbarger said.

Because of the risk social media poses, the role of the chief compliance officer has grown to encompass the occasional or, in some cases, often, monitoring of employee’s Facebook and Twitter accounts. Tweeters and posters beware: big brother is watching!

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