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46 www.thejewelrybook.com C Y B E R S E C U R I T Y J E W E L R S U N B L O C K E D We have all witnessed the news reporting of some sort of cyber mishap, and some of us may even know someone who actually suffered a loss of that type themselves. IBM Corp.'s Chairman, CEO and President, Ginni Rometty, recently told Forbes that cyber-crime may be the greatest threat to every company in the world. Large corporations such as Sony, Target - even the GIA have been hacked and customer information has been com- promised. Chances are organizations of that size probably have better security measures in place than you do. Does that make you feel a bit uneasy? Hopefully the answer to that question is a resounding "Yes!" As reported by Forbes, "In 2015 the British insurance company Lloyd's estimated that cyber-attacks cost busi- nesses as much as $400 billion a year, which includes direct damage plus post-attack disruption to the normal course of business." The jewelry industry is no different than any other industry - businesses are increasingly relying on the internet for advertising, branding and sales. Virtually everyone has this risk exposure, yet very few have the security and insur- ance protection that they need. Perhaps this is due to a limited understanding of the internet and how it works. Forbes further reports that, "Large banks, retailers, and federal agencies make the headlines when they are hacked - but all businesses are at risk. According to Microsoft, 20% of small to mid-sized businesses have been cyber-crime targets." Access to the internet represents a vulnerability - some- one can get through it if they have the necessary knowledge, skills and equipment. While it is regular practice in our business to engage consultants to advise us with regard to physical security issues, for some reason we do not extend that same engagement to our World Wide Web activities. Our customer's details being stolen leaves us liable for the damage that it may cause to the very people that we need to keep our businesses thriving. Hackers could get in and out of your database and you wouldn't even know it. Consider what would happen if you were hacked for details, such as buying patterns, the goods that they have bought from you, the prices paid for those goods, etc. Think about the ramifi cations if a hacker changed your invoices and diverted thousands of dollars to a bank account other than yours. If you were able to fi gure this out by the time that happens your money is long gone. As a jeweler the damage is done and you may not survive such a fi nancial loss. It is imperative that we engage experts in the same way that we do for accounting and legal advice. In addition to such professional consultants, the prudent business person will also consult with their insurance advi- sors to purchase protection; not only for the fi nancial losses that could occur, but for the liability associated with the wrongful dissemination of client information. One last thought from Forbes: from 2013 to 2015 the cyber-crime costs quadrupled, and it looks like there will be another quadrupling from 2015 to 2019. Clearly it is time to contact your insurance advisor to discuss protection for your business from this criminal epidemic. About Jewelers unBLOCKed™ Jewelers unBLOCKed™, offered by CED 1976 LLC, is the national exclusive Managing General Underwriter for multinational A++ rated insurance companies in the jewelers block and luxury space. JUB provides proprietary customized insurance coverage to meet the challenges of the jewelry industry. Solutions are developed for retailers, designers, wholesalers, manufacturers and refi ners. Our services include the underwriting and issuance of industry leading jewelers block policies. In addition Jewelers unBLOCKed™ also pro- vides bespoke insurance programs for the private client and collector. For more information, please visit www.jewelers-unblocked.com. Cyber Treats for Jewelers The Virtual Crime Epidemic BY PATRICIA K. LOW, PRESIDENT/CEO OF JEWELERS UNBLOCKED ™

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