Homeowner’s associations are vulnerable to cyber attacks because of the personal data stored in their databases. An HOA has names and addresses, social security numbers, bank accounts and credit card numbers on file. This sensitive and confidential information is what hackers search for when committing cyber theft. It is essential to protect people’s privacy and safeguard their financial information. Associations need HOA insurance to provide adequate protection if a cyber crime occurs.
What Is an HOA Cyber Attack?
HOA cyber attacks are data breaches where a hacker seizes the personal information of association members or steals the records of an HOA. These malicious attacks have profound implications because of identity and financial theft risks. Work with clients to inform them of these tips for protecting your HOA against a cyber attack.
Consider Password Security
Password theft is big business for cyber criminals. Companies often use a general password for large systems to make it easier for all staff members to access databases. Additionally, companies neglect to update passwords unless there is an issue. Secure passwords are imperative for data safety. It is a good idea for HOAs to incorporate longer passwords (8 to 12 characters) and make them complex with a combination of details:
- Letters in lowercase
- Letters in uppercase
- Special characters
- Numbers
Ensure that clients know to avoid reusing or generalizing passwords and their staff regularly update passwords.
Use Multi-Factor Authentication
Verifying identity is essential to protect HOA data. Multi-factor authentication steps prevent access by outside entities into operating systems. Many businesses use a two-factor process that requires two pieces of information to confirm identity before entering a system. This process repeats at every sign-in. HOAs can choose if they want additional factors to prove identity.
Develop Data-Access Policies
Data policies are effective in managing the retrieval of data. HOAs must know who is accessing their systems. Written policies set forth guidelines for system use and security. However, data-access rules are only effective when understood by employees and enforced by the homeowner’s association. Training individuals and updating policies must occur consistently, especially as new cyber threats arise.
Try Hosting to a Cloud Server
A cloud server may provide HOA clients with the best data security option. Encryption of data on in-house servers can be expensive and complicated. Cloud hosting has advanced security measures that are continually updated. There is also the advantage of having a backup if files are accidentally deleted. Another benefit is that HOAs shift the burden of data protection to a third party.
It is good to review HOA insurance coverage options with HOA management teams. With cyber attacks on the rise, insurance coverage should include data breaches and cyber theft. The best defense against cyber crimes is a comprehensive approach to security.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.