A recent data breach in the U.S. has compromised the personal information of 800,000 insurance customers, raising serious concerns about data privacy and security. As sensitive details are potentially at risk, affected individuals may face threats like identity theft and fraud. This incident highlights the growing importance of safeguarding personal information in a digital world where cyberattacks are becoming all too common.
The Breach: What Happened?
Landmark Admin works closely with major insurance companies like American Monumental Life Insurance Company, Pellerin Life Insurance Company, and American Benefit Life Insurance Company, managing sensitive data for millions of policyholders.
Landmark Admin, a company providing administrative services to major U.S. insurance carriers, recently disclosed a significant cyberattack in May 2024, compromising the personal information of over 800,000 individuals.
The breach began when hackers gained unauthorized access to Landmark’s network. According to a report submitted to the Maine Attorney General’s Office, unusual activity was detected on May 13, 2024. Landmark promptly disconnected the affected systems and restricted remote access to secure their network and mitigate further damage.
Despite Landmark’s efforts and the assistance of a third-party cybersecurity team tasked with investigating and securing the system, hackers breached Landmark's defenses once more on June 17, 2024.
The investigation uncovered that the attackers not only encrypted data but also stole it. The compromised information includes highly sensitive details such as names, social security numbers, driver’s license and passport numbers, tax IDs, bank account information, medical records, health insurance policy numbers, and even life and annuity policy details.
Data Breach Exposes Personal Info, Raising Identity Theft Risks
This breach raises significant concerns due to the sensitive nature of the exposed data. With access to social security numbers and key personal identifiers, such as driver’s license and passport numbers, cybercriminals have the means to commit large-scale identity theft and fraud. The inclusion of bank details and health insurance information heightens the risk, opening doors to potential financial crimes and fraudulent claims.
The insurance industry has long been a prime target for cyberattacks due to the vast amount of personal data it stores. This breach is particularly notable for affecting over 800,000 individuals but also because hackers breached Landmark’s systems again, despite initial security measures.
In response to the breach, Landmark Admin is providing free identity theft protection services to all affected individuals. The company has started notifying those whose personal data may have been compromised, sending notifications via first-class mail in waves as individuals are identified.
Additionally, Landmark Admin has strengthened its data encryption protocols and implemented other IT security improvements to prevent future attacks. These enhancements include upgraded encryption methods and enhanced network security to protect sensitive data moving forward.
How Can I Ensure My Insurance Policy Covers Data Breaches and Cyberattacks?
Data breaches and cyberattacks are increasingly common, and many individuals and businesses are concerned about whether their insurance policies provide adequate coverage for such incidents. Here’s how you can make sure you’re protected:
1. Review Your Cyber Insurance Policy: Cybersecurity insurance is a specialized policy designed to cover the costs associated with data breaches and cyberattacks. If you don’t already have one, consider adding a cyber liability policy to your coverage. These policies typically cover data recovery, legal fees, public relations efforts, and any fines or penalties resulting from a breach.
2. Check for Cyber Liability Coverage in Your General Insurance: Some general business or property insurance policies may include limited cyber liability coverage, but it’s very important to review your policy in detail. Many standard policies have exclusions when it comes to cyber-related incidents, so it’s important to clarify with your insurance provider what’s covered.
3. Talk to Your Insurance Agent or Attorney: Consulting with an insurance expert, such as your insurance agent or an attorney specializing in insurance law, can help you determine whether your current policy provides sufficient coverage. They can guide you on what to look for and advise on potential gaps in your policy.
4. Understand What’s Covered: Cyber insurance policies may vary in coverage, so make sure you understand exactly what is included. Some policies cover data restoration, breach notification, legal costs, and identity theft protection for affected customers. Other policies may extend to business interruption costs or reputational damage.
6. Stay Updated on Policy Changes: As cyber threats are increasing, insurance policies are evolving to address emerging risks. Make sure your insurance policy is updated regularly to reflect the latest risks. This includes coverage for new types of cyberattacks, such as ransomware, and any emerging regulations regarding data protection.
7. Consider Additional Coverage for Regulatory Actions: If your business handles sensitive customer data, you may also want to ensure your policy covers the costs of responding to regulatory inquiries, fines, or lawsuits related to data breaches, which are becoming more common in industries that handle personal data.
By taking these proactive steps, you can ensure your insurance policy offers the coverage needed to protect you from the financial fallout of a data breach or cyberattack.
If your insurance company has denied, delayed, or underpaid your insurance claim, contact Law Office of Rabih Hamawi for a case evaluation at (248) 905-1133 or www.hamawilaw.com.
Who is Rabih Hamawi?
Attorney & Counselor
Rabih Hamawi is a principal at the Law Office of Rabih Hamawi, P.C. and focuses his practice on representing policyholders in fire, property damage, and insurance-coverage disputes against insurance companies and in errors-and-omissions cases against insurance agents. He may be reached at (248) 905-1133.