ERI’s John Shegerian Points to Hardware Hacking as Reason for Cyber Insurance Boom

Business Wire

NEW YORK--(BUSINESS WIRE)-- Citing a recent “All Things Considered” story broadcast by NPR detailing a dramatic surge in cyber insurance policies for businesses, John Shegerian, Co-Founder and Executive Chairman of ERI, the nation’s leading fully integrated IT and electronics asset disposition provider and cybersecurity-focused hardware destruction company, has called the situation a “natural and responsible reaction to the rapidly growing threat of hacking and data mining.”

The NPR story claimed that US insurance companies are currently writing more than 1000 cyber insurance policies each day. Hack victims and experts interviewed for the story focused on online cyber attacks and the need for changed behavior. Shegerian agrees with the sentiment, adding that an additional area that is equally dangerous and often overlooked is the hacking of hardware and devices. To fully combat the threat of a breach, he argues, it has become urgently important to account for data on discarded hardware as well.

“When a device is responsibly recycled here in the US, part of that process should always include complete, physical data destruction,” said Shegerian. “Guaranteed data destruction is key. Some companies believe their data is being wiped when they drop devices off for recycling and that is not always the case. Also, unethical and illegal shipping of e-waste abroad has become an additional layer to the hardware security issue because it leads to the wholesale liquidation of the privacy of the corporations and individuals of the United States. Recycling these devices is important, but it must be done the right way.”

Shegerian noted that ERI currently provides the only nationwide solution certified at the highest level by all leading environmental and data security oversight organizations offering guaranteed data destruction for consumer electronics devices, e-waste, and hardware.

ERI is the largest fully integrated IT and electronics asset disposition provider and cybersecurity-focused hardware destruction company in the United States. ERI is certified at the highest level by all leading environmental and data security oversight organizations to de-manufacture, recycle, and refurbish every type of electronic device in an environmentally responsible manner. ERI has the capacity to process more than a billion pounds of electronic waste annually at its eight certified locations, serving every zip code in the United States. ERI’s mission is to protect organizations, people and the environment. For more information about e-waste recycling and ERI, call 1-800-ERI-DIRECT or visit https://eridirect.com.