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36 Pallet C e nt ral • Janu a r y -Fe b r u a r y 2 0 24 TECHNOLOGY BY ERIN SELFE, VICE PRESIDENT – INFORMATION TECHNOLOGY, PENNSYLVANIA LUMBERMENS MUTUAL INSURANCE COMPANY S awmills, wood processors, and pallet operations are more digitally savvy than ever before, but these technological advances come with new risk exposures. Cybercrime is on the rise, and without the proper protections in place, business owners are at risk of major losses and potentially even business shutdowns. As a leading insurer in the industry, we have seen an increase in cyber claims and premiums over the past few years. is past year, we saw roughly a 20% growth in cyber insurance policies, and we expect to see the same, or more, in the next year. Most notably, ransomware claims continue to plague the industry. Hackers are demanding more and evolving in their tactics. ese new tactics include the following: Double Extortion A combination of general ransomware techniques and extortionware is emerging. In a normal ransomware case, hackers take a victim's data and lock the information while holding it for ransom. is has become less effective as businesses develop backups of their files. Now, with double extortion, hackers will take that data and move it elsewhere, often threatening to sell it over the dark web. is places additional pressure on the business owner to pay the ransom. Data Exfiltration Data exfiltration is a common cyberattack today where hackers silently steal data from computers or other devices through basic breaches in security. As cybercriminals come up with new methods of stealing data, pallet companies need to have stronger cybersafety practices in place. In the event of a ransomware attack, disconnect any devices from your network and contact IT immediately. Most cyber professionals recommend not paying the ransom immediately or at all. Contact your cyber insurer for assistance. Cyber insurance often provides assistance such as helping through ransomware "negotiations" with cybercriminals who are often part of very savvy cyber gangs. Remember The Primary Preventative Practices To Help Prevent Ransomware, Such As: • Back up all files. All files should be backed up to a secondary location, like a secure cloud storage service. • Keep security software updated. Work with your IT provider to ensure security software is always current. • Use secure networks. Use a verified and secure network so cybercriminals have a much more difficult time accessing your data. • Regularly train staff. Educate your staff to recognize phishing or other tricks that might open the door to a successful cyberattack. Implementing these steps and working with your insurer to confirm you have the right cyber coverage in place can go a long way to maximizing your cybersecurity efforts and preventing losses. A 2024 CYBER UPDATE

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