News Summary
Philadelphia Insurance Companies is working to restore access to its internal systems after a significant network outage that began on June 9. The incident disrupted email, phone communications, and online platforms, prompting a shutdown to prevent data threats. A forensic investigation is ongoing, revealing similarities to a recent outage experienced by Erie Insurance. Analysts suspect a connection to a known threat actor, raising concerns over cybersecurity in the insurance sector as both companies implement measures to protect their systems and customers.
Philadelphia – Philadelphia Insurance Companies has begun the process of restoring access to its internal systems following a significant network outage that started the weekend of June 9. This outage affected email, phone communications, and online platforms, leaving employees unable to perform essential functions. Limited access has been restored, allowing employees to regain the ability to use key systems, including email services.
The company implemented a shutdown of its systems as a precautionary measure to contain a potential threat and safeguard its data. Philadelphia Insurance has confirmed that the incident was not related to a ransomware attack, emphasizing that no systems were encrypted during the outage. However, the company noted that a full return to normal operations will take time, even with the gradual restoration of access.
Technical teams have been actively engaged since the occurrence of the initial alert regarding suspicious activity. A forensic investigation is currently underway to determine the exact nature and extent of the incident. The disruption led to a significant interruption in services, but customers could still file claims through phone lines and receive service via regional agent networks, ensuring that core policyholder functions continued largely unaffected.
The timing of the incident coincides with a similar network disruption experienced by Erie Insurance, which began on June 7. This similarity has raised alarms among cybersecurity analysts, prompting investigations into the possibility of coordinated attacks targeting both insurers. Reports indicate that unauthorized access was the main cause of both companies’ system shutdowns, leading to concerns about the integrity of their systems.
Experts have highlighted that the incidents may be connected to a known threat actor called Scattered Spider, also known as UNC3944. This group is known for its sophisticated social engineering tactics, often impersonating employees to bypass multifactor authentication and gain unauthorized access to systems. The growing susceptibility of the insurance sector to targeted cyberattacks has provoked apprehension among industry observers, as attackers adapt their techniques to exploit new vulnerabilities.
In light of these incidents, both Philadelphia and Erie Insurance have issued warnings to their customers regarding potential email and phone scams that may arise as a result of the breaches. Erie Insurance reported the cyber incident to the U.S. Securities and Exchange Commission on June 11 and has since implemented additional security measures to protect against future threats, assuring its customers that there is no ongoing threat from the attackers.
The incidents at both insurance companies underscore the increasing risks faced by the insurance sector. Analysts suggest that the potential number of individuals affected by these breaches could reach millions due to the extensive customer data managed by both organizations. Concerns about data theft are prevalent, as cybercriminals could utilize stolen information for malicious activities, such as identity theft.
Industry experts recommend that insurance companies develop well-defined incident response plans and conduct routine testing of their security measures. Ongoing education for employees regarding the identification of suspicious activities is also crucial for strengthening overall cybersecurity resilience in the sector.
Both Philadelphia Insurance and Erie Insurance are taking proactive steps to reinforce their systems and mitigate the risks of future cyber threats. The ongoing investigation and restoration efforts highlight the critical importance of cybersecurity in today’s increasingly digital world.
Deeper Dive: News & Info About This Topic
HERE Resources
Service Disruptions Hit Philadelphia and Erie Insurance
Additional Resources
- Insurance Business
- Wikipedia: Cybersecurity
- Go Erie
- Google Search: cybersecurity insurance outage
- Reuters
- Google Scholar: cybersecurity incidents
- CyberScoop
- Encyclopedia Britannica: cybersecurity
