What is Cyber Crime ?  It could be hackers vandalizing your site, viewing confidential information, stealing trade secrets or intellectual property.  As seen this past year, in several widely publicized cases, it can also include “denial of service” attacks preventing regular traffic from reaching your site.

Cyber Crime can also include the insidious effect of viruses and their cousins the Internet worms, which have affected and extraordinarily broad range of computers, as illustrated by the recent fast-spreading ILOVEYOU family of programs.

Cyber Crime is not limited to outsiders.  With the exception of virus attacks, in fact, experts agree that the majority of security breaches are brought about by those closest to home, that is, employees. Employees have greater access to information than ever before, and easy to use, standard, systems allow these persons, when ill-motivated, to view, print, or e-mail entire files with a click of the mouse. Employee theft is not new, it has just become significantly easier, with respect to access, the ability to enter undetected and to cover one’s tracks.

Who is affected by Cyber Crime? Confidential national surveys indicate that virtually all companies of any size admitted that they had been victimized. As more companies gain an on-line presence and take advantage of the rapid gains in technology, greater attention needs to be paid to these security risks.

What can we do about it? Identification of the exposures through education will assist responsible companies and firms to meet these challenges. While there is considerable valuable material concerning security, virus protection and related concerns, what happens when defenses in such matters fail? As victims of such a breach, you and your clients may be unwillingly involved in a potential ‘cyber crime’. There are many important legal issues which may arise relating to potential or actual cyber crime, and a number of resources which can assist your in understanding them. The following article will address practical and investigative issues important to dealing with potential Cyber Crime, in the hope that understanding these issues will help you and clients understand how these practical and strategic factors affect the business, legal, and other parameters which may arise.  The article will also provide planning parameters which may help you avoid being the victim of such intrusions.

John F. Beecher is the editor of LawSight’s Risk Management Section. He has 20 years’ experience with commercial and professional insurance.