A hacker group known as Scattered Spider, which recently targeted retail companies in the U.S. and U.K., is now focusing on the insurance industry. This development raises concerns for home and auto insurance policyholders.
Since April, Scattered Spider has been attacking retailers. In June, attackers linked to the group shifted their focus to insurance companies. According to the Google Threat Intelligence Group (GTIG), this group tends to target one sector at a time.
GTIG warned insurance firms to be alert. They said hackers might try to trick help desk and call center workers through social engineering schemes.
The warning follows a cyberattack on Erie Insurance, based in Pennsylvania, on June 7. This attack caused a network outage that stopped customers from reaching the company or filing claims. Erie Insurance is cooperating with law enforcement but has not confirmed that Scattered Spider was behind the attack.
Philadelphia Insurance also experienced a system outage on June 11. Their phones, email, and online services were down, affecting customer communication.
These outages mean many policyholders could face delays. They might find it hard to file claims, fix billing problems, or buy new policies if the attacks continue.
Hackers could also target policyholders directly. David Fong, vice president of information security at Insurify, warns people to be careful with unexpected emails, texts, or calls that claim to be from insurance companies.
Hackers might try to use your policy details to pressure you into giving out sensitive information, such as Social Security numbers or credit card data. They may threaten to cancel your policy if you do not comply.
Fong advises that real insurance companies follow strict rules. They must give customers advance notice—usually 30 days—before increasing premiums or changing policies. Insurers also have to warn customers before canceling or refusing to renew car or home insurance.
With the rise of artificial intelligence, cyberattacks are expected to become more frequent and sophisticated. Fong says insurers will need to boost their cybersecurity and improve how they communicate safely with customers.
Policyholders should stay alert for phishing attempts and suspicious messages. If you receive an urgent or threatening request, do not respond directly. Instead, go to your insurer’s official website and use the contact information listed there to confirm.
