Data breaches have increasingly become a concern for consumers in the U.S. Nevertheless, the consequences of data breaches can affect rural telecom cooperative policyholders differently than their urban and metropolitan counterparts. When an insurance or telecommunications organization that processes sensitive personal data experiences a data breach, individuals in smaller or underserved areas can experience different risks and challenges, regarding protecting oneself (e.g. disclosing the information to a third party) than those in more urban areas.
Recently, Telcom Insurance Group disclosed a Data Breach incident whereby the personal information, which included names and social security numbers, was accessed by an unauthorized party from the organization's systems. The information disclosed in this breach event illustrates how alarming and troubling data breach events could be to policyholders linked with rural telecom cooperatives and community-based providers.
Limited Access to Support Resources
Those policyholders living in rural locations often have less local resources after a breach has occurred. Cybersecurity guidance, legal assistance, or even credit monitoring services may be limited in availability when compared to larger metropolitan areas. These limitations can also delay the adoption of a response action (typing of 'freeze credit' or confirming identity theft), which can only exacerbate the vulnerability.
Greater Dependence on Local Carriers
Rural residents often rely on cooperative telecom organizations as their primary communications and digital service provider. There are times when switching providers or obtaining support may not be an option after someone has had information compromised due to limited availability or higher dependence on one service structure.
Higher Fraud Targeting Risks
Cybercriminals frequently exploit smaller demographic areas where verification processes may not be subject to the same rigor. Acquiring sufficient information to cross reference an identity can lend itself to unique types of fraud, whether financial fraud, government benefit fraud, or impersonating the subject. A social security number and date of birth are often sufficient identifiers for either of these types of fraud, both of which could lend higher risks to the carrier.
The Economic Impact is More Severe
Unforeseen financial strain stemming from an incident of identity theft could have dire consequences for residents of less densely populated, economically stagnant areas. Policyholders residing in rural areas may be more seriously impacted over time, more specifically, if that identity theft has compromised access to credit, loans, or tax records.
Trust and Community Impact
Members of cooperative telecommunications organizations often have a relationship based on community relationships grounded in trust. A violation of that trust can undermine confidence not only in the organization that has been breached, but also in the local community ecosystem that depends on mutual accountability and community partnership.
Why Awareness Matters
Awareness of the multifaceted hardships that affect rural policyholders positions an organization to better appreciate the importance of open communication and prompt notice after any a data exposure event. Timely awareness allows individuals to consider protective measures like, or changes to monitoring their credit, requesting credit fraud alerts, and otherwise verifying their identity.
As cyber attacks continue to evolve, the cyber security practices of community-based telecommunications and insurance organizations needs to be strengthened with regard to supporting their consumers with the utmost need, whom rely on their services.
