Cybersecurity Insurance in the ARM Industry: What You Need to Know


ACA International’s subsidiary Collectors Insurance Agency provides cybersecurity resources and compliance tips.

11/3/2021 10:00

Since the COVID-19 pandemic made working from home commonplace in the last year and a half, the topic of cybersecurity—especially within the accounts receiavable management (ARM) industry—has generated a lot of buzz.

While data breaches targeting large companies and institutions may be receiving the majority of the public attention, companies of all sizes are at risk, says Tim Dressen, ACA’s communications consultant, in an article for the November/December edition of Collector magazine.

One of the biggest potential vulnerabilities for many collection agencies is the use of outdated technology. Upgrading systems is time-consuming and expensive, but using legacy systems carries increased security risks, Dressen reports.

It’s critical to make sure your cyber liability insurance is current, and coverage is easy and affordable for ACA members. A cyber liability insurance policy is designed to protect you from lost income and cover defense fees your business may be required to pay as a result of a data breach, ACA International previously reported.

Collectors Insurance Agency (CIA), a subsidiary of ACA, provides members exclusive access to risk management products and services tailored to each members’ specific needs.

While some agencies may have employees back in the office, there are still a good number working from home. In the event a data breach happens, what should collection agencies do and how can cybersecurity insurance from CIA help?

CIA’s sales manager Dereck Tessmer shares their major tips to combat this problem.

“The exposure of employees at home or working remote is that you are not always aware of what security measures are in place,” Tessmer said. “Multi Factor Authentication (MFA) is a must-have if you have remote workers,” Tessmer said. “In the event of a data breach, or if a breach is thought to have occurred, you would need to notify all those individuals of the breach, as well as provide credit monitoring services. These are often the first dollar expenses that our members would incur, and a major benefit of having a cyber policy in place.”

When a policy is in place, you will want to reach out to your carrier as soon as you become aware of the breach, Tessmer explained.

“A benefit of having coverage is the carriers know the notification requirements and the steps needed to be done to stay compliant with the different requirements by each individual state,” he said.“The carriers also have relationships with the credit monitoring companies’ notification companies.”

In addition to tips and helpful advice in the case of data breaches, CIA also provided a comprehensive guide from the carrier Cyber Risk Aware with tips to avoid online phishing and internet scams.

The guide cites the major causes of security incidents involving phishing, malware and ransomware downloads, wire fraud, and weak password security, among others.

“We are here for our members. Everything we do is in the interest of them, and we are continually putting their needs before ours,” Tessmer said. “We are not here to just sell a policy, but make sure we are meeting our members’ needs.”

Debt collection agencies also must consider state and federal laws when deciding whether to allow employees to make collection calls from home or other remote locations.

Other resources online include a comprehensive library of information, tips and resources from the Cybersecuirty & Infrastructure Secuirty Agency with everything from protecting against ransomware, malware and phishing attacks to dealing with cyberbullies and staying safe on social networking sites.

Contact Sales Manager Dereck Tessmer at [email protected] or (952) 259-4224 for resources and information on the CIA cyber liability and executive risks policies. 

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