Daily Market Update

Daily Market Update | Insurance Business

Daily Market Update
Business data at risk due to a ‘cavalier’ attitude
Despite the growing prominence of mobile device use — and the fact that mobile has the potential to be a highly secure platform — businesses and users appear to be cavalier in their attitude toward the application of mobile security in the workplace. New research released by security specialists Entrust, shows that business data is currently at risk as a result of haphazard approaches to keeping mobile devices secure. “Even though users may know that a specific mobile device might not be secure, and despite company security policies in place, many users are not adhering to policy,” said Mark Reeves, vice president, International, Entrust. “A high proportion of respondents admitted to losing their device they use for work up to three times in one year, and most are using the simplest form of protection — the PIN lock. Our research also shows that business owners who have the most to lose are among the most reckless.” The study found that although younger workers are more savvy when it comes to security - for example using strong passwords -  they are also the most likely to lose their device. Those over the age of 45 are most likely to leave phones unprotected by a PIN.
 
Earthquake risk raises questions for insurance industry
After South Africa was hit by a 5.5 magnitude earthquake this week, an insurance company says the industry needs to ask whether it’s prepared to deal with natural disasters. One person died and 34 were injured when the quake struck on Tuesday and Christelle Fourie of MUA Insurance says it’s a ‘wake up call’ for the industry, especially in South Africa, to make sure it’s ready to deal with natural disasters. "While it has yet to be proven that earthquakes are related to climate change, insurance and reinsurance companies have been among the first companies to start feeling the effects of natural disasters in the form of increased payouts related to severe weather events like floods and storms," she said. Read the full story.
 
Police warn of scam using PayPal Mastercards
Police in Washington DC are warning of a scam involving prepaid debit cards issued by PayPal and stolen from retailers. The fraud involves merchants approving ‘offline’ transactions on Point of Sale systems which are then the result of ‘chargebacks’. Restaurants and retail outlets are being targeted and police say businesses should be fully aware of vulnerabilities in the point of sale system and contact card issuers if they are unsure or suspicious.
 
Senior finance managers need more emphasis on risk management
The financial sector and risk management have been much talked about in recent years but according to finance expert William R Rhodes there is still too much risk taking. He says the US Federal Reserve should lead the world on tightening regulations on risk management; highlighting issues such as rapid increase in subprime loans for car purchases. Mr Rhodes says that action needs to be taken to create rigid systems to manage risk in the financial sector before another crisis. Read the full story.