Cyber risk in mirror is closer than it appears

By Chad Hemenway on August 6, 2015

We tend not to worry about anything unless there is a public problem. Action may be even slower.

But action came pretty darn quick when a pair of cybersecurity researchers took over a Jeep’s electronic systems. The Jeep was driven by a WIRED reporter and the story went haywire. I assume this audience has read the story and seen the video but if you haven’t, take a look.

What followed was a strange combination of: “Hey, that’s funny.” and “Hey, that’s downright terrifying.”

Because at first, it is kind of funny to watch a guy panic while he’s driving down the highway and the windshield wiper fluid squirts. And the radio gets turned up full blast to a some rap station. How cute.

Then the hackers, from a couch, remotely shut off the Jeep’s engine. They also demonstrate how they can cut the brakes.

Not funny.

Congrats to WIRED for doing this story in a way that went viral and gained the attention of federal lawmakers, who are now talking about legislation to regulate the security of vehicles’ electronic systems. Millions of vehicles exposed to this hacking danger are now being recalled. This is a good thing, since the cybersecurity researchers involved in the vehicle hacking have said they can do this to many, many other vehicles (it is said more than 470,000 vehicles are exposed to this cyber risk) and the hackers have been able to do this for a while.

These guys shattered doubt. And the WIRED reporter was brave enough to take the show on the road. Past stories on the possibility of car hacking were performed in controlled environments, like a parking lot. Who cares? No one can get hurt. We can’t visualize it. And other intrusions of vehicle systems involved hackers in the car with a laptop plugged into the dashboard.

But this WIRED story is a significantly important development because there is clearly now a public problem requiring action. This guy was on the highway and could not accelerate! An 18-wheeler was barreling toward him! That could have been my family! This could kill someone! $#@*!

This ethical hacking, although a tad dangerous, also exposed the public to cyber terms heard here often but have yet to make it to the dinner table on a regular basis, such as zero-day exploits, or more importantly, the Internet of Things.

It also points furthermore to how cyber risk can extend to other insurance lines of business such as product recall, auto liability and life.

Technology for technology sake; for convenience; bells and whistles. Cybersecurity must remain top of mind or issues like the ones exposed here will surface elsewhere.

Makes me long for the days of my 1973 Chevy Nova lacking power steering or power breaks. When I was lost I asked someone for direction, referred to a map or just enjoyed being lost. She’d stall at an intersection here and there but it was because I didn’t feather-push the gas pedal, not because some techy was cutting the trans from his living room.

Chad Hemenway is Managing Editor of Advisen News. He has more than 15 years of journalist experience at a variety of online, daily, and weekly publications. He has covered P&C insurance news since 2007, and he has experience writing about all P&C lines as well as regulation and litigation. Chad won a Jesse H. Neal Award for Best Single Article in 2014 for his coverage of the insurance implications of traumatic brain injuries and Best News Coverage in 2013 for coverage of Superstorm Sandy. Contact Chad at 212.897.4824 or [email protected].