Why Nonprofits Are Easy Targets for Card-Testing and How to Protect Your Organization

The ability for donors to go online and contribute to their favorite nonprofit has become a straightforward and easy way to support an organization. During the Covid-19 pandemic, many nonprofits have moved their fundraising campaigns online, allowing supporters to make donations via their debit or credit cards. Even though online contributions have been a solution for organizations to stay financially afloat, it has also presented opportunities for cyber criminals who continue to view nonprofits as easy and vulnerable targets. Because of this, card-testing fraud has become a major problem for organizations.

What is Card-Testing Fraud?

Card-testing is a fraud strategy used to validate a stolen debit or credit card. While using a stolen credit card, cybercriminals go onto a nonprofits website and make small, unalarming donations to "test" the payment method's authenticity. Once the information is validated, it can be sold on the black market or used by criminals to make fraudulent purchases.

Why Nonprofits?

Cybercriminals target nonprofits because they assume it will be like taking candy from a baby. Why? Because organizations might not have strict and up-to-date cybersecurity that large corporations would have. Also, nonprofits accept donations that don't include an actual exchange of products or services. Gifting or donation checkout platforms are generally very basic and typically don’t include the same types of security measures as online merchants. The best line of defense against card-testing fraud is a multilevel approach that includes some or all of the following measures.

Set a minimum donation amount. Cybercriminals test credit cards by processing transactions of $10 or less. The simple act of setting a minimum amount can help to deter a cybercriminal who may be testing dozens of credit card numbers.

Add additional security technologies. Online technologies added to donation pages and websites can help to improve the security of a donor’s transactions. For example, use a CAPTCHA feature to verify that the person submitting the donation is a human instead of a computer running a script of credit cards.

Require an address or ZIP code. Requiring the donor to include a physical address or a ZIP code when contributing online can help verify the cardholder's identity.

Educate staff and volunteers. Education and training for staff and volunteers on cybersecurity strategies, best practices, and modern protocols are crucial for organizations. This should include internal policies for how to report suspicious online activities and potential fraudulent offenses, such as card-testing, that could cause serious reputational and financial damage to the organization.

Mitigate the risks. It's impossible to eliminate the risk of a cyberattack or fraudulent activity, and not all nonprofits are able to implement the strategies above. Today, it's more critical than ever for nonprofits to obtain a cybersecurity insurance policy to help mitigate the threatening online landscape organizations face.

Online fraud comes in many different forms and despite safeguards and preventative measures, anyone can unknowingly fall victim to a cybercrime. As more nonprofits modernize their websites and opt for virtual fundraising events, it's important for organizations to understand how cybersecurity insurance can help protect your donors while also mitigating the organization's risk exposure.

At Hawley & Associates we pride ourselves on our unique approach to insurance. We ask the right questions and dig a little deeper in determining your cyber security risks and exposures and show you how Cyber Liability Insurance can help protect your mission from fraudulent activity and cyber threats. Contact us today to learn more about our risk mitigation and cyber insurance solutions.

 

April Fool's Day - How Did It Start Anyways?

"Everything is funny, as long as it’s happening to someone else."– Will Rogers

April Fools' Day (sometimes called All Fool's Day) is one of the most widely recognized non-religious holidays in the Western world. How the custom of playing practical jokes or pranks on April 1 came about is still a bit hazy.

There are many theories out there, with one dating back to the 1500's, when the Julian calendar was replaced by the Gregorian.  Those who forgot (or even refused) to observe the change and attempted to celebrate New Year's (previously celebrated on the 1st of April) on the original date were teased as "April fools."

There are no 'official' rules, but superstition says the joking period must end at noon on the 1st of April.  Anyone pulling a prank after this time is considered to be a ‘fool’ themselves because they don’t know the 'rules', or have failed to follow them.

Happy pranking!

Nonprofits—Third Largest Workforce in U.S.

Nonprofits play a vital role in the social and economic well-being of the United States.  According to an April 2018 report by Johns Hopkins Center for Civil Society Studies, titled “Nonprofits: America’s Third Largest Workforce", there are 11.9 million nonprofit jobs in the U.S., making the nonprofit sector the third largest employer in the country. Only two other industries -retail trade (15.7 million) and manufacturing (12.3 million) account for a larger workforce.

While nonprofit workers are employed in a wide variety of fields, 54.3% of nonprofit workers are employed in the health field- encompassing hospitals, clinics and home health services, followed by education (15.6 percent), social assistance (12.1 percent), other services (6.7 percent), arts and recreation (2.5 percent), and professional services (2.2 percent).

Employment is just one factor in determining the importance of the nonprofit to the U.S. economy. Tracking and charting economic trends is imperative in assisting the nonprofit sector with increasing challenges - on both a local and federal level.  Their ability to respond to these challenges has been greatly restricted by a lack of information and data in their sector and how it relates to other industries. 

The John Hopkins Nonprofit Economic Data Project (NED), in collaboration with other local and federal agencies is collecting and providing vital data related to and for the nonprofit sector.

How One Agent Adopted a Niche within a Niche – As published by the Insurance Journal – Feb. 2019

Hawley & Associates is in existence for just one reason; to provide specialized insurance solutions for the nonprofit and social service community.  It has always been and will continue to be our sole focus!

We would like to share a wonderful article recently published by the Insurance Journal about the founding of Hawley & Associates, our niche market and the roots of our unique mission.

We would like to thank our clients for allowing our mission to empower your mission!

Read Full Article

Source: Insurance Journal, February 4^th, 2019 | Volume 97 No. 3

Hawley & Associates' 1st Qtr.2017 Newsletter...Hot Off The Press!

It's here!  Please enjoy the 2017 -  1st Qtr. 2017 Newsletter!

Spring Has Sprung! Check Out Hawley & Associates 1st Qtr. Newsletter!

Check Out Hawley & Associates 1st Qtr. Newsletter!  Click on link below!!

http://archive.constantcontact.com/fs143/1114254466215/archive/1116842621608.html

Wayne F. Hawley - December 12, 1934 to March 13, 2014

Hawley & Associates Sponsors ORPHANS OVERSEAS "Evening of Hope" Gala

Hawley & Associates strongly believes in the industry we serve and were proud to sponsor this year's Annual Orphans Overseas Fundraiser, held in Portland, OR.

 

Their annual "Evening of Hope" is a gala dinner and auction supporting the Orphans Overseas projects on behalf of vulnerable women and children around the world.

 
They are a non-profit organization and for 22 years they have worked around the world supporting orphan care initiatives, rescue care for abandoned infants, support programs, domestic & intercountry adoption, and orphanage education projects.

Property Maintenance Is Great Risk Management!

Did you know that property damage resulting from poor maintenance is not covered by property insurance?

Many organizations find out the hard way that their insurance policy does not cover damages resulting from poor building maintenance.

Could This Happen To You?
 
After many days of heavy rain, you discover water damage to your ceiling and carpet. You instinctively file a property damage claim, fully expecting the damage to be covered by your insurance policy. It is later revealed that the damage was caused by debris (i.e. leaves, branches, etc.) that had been collecting in the roof drains.  This resulted in the water puddling on the roof instead of running off and down the drain system.

The claim was denied due to poor maintenance of your roof and your organization is now responsible for the total cost of repairs!


An Ounce of Prevention Is Worth a Pound Of Cure

You have worked hard to build your organization and your mission. That is why it's so important to protect that mission! Having insurance coverage is just one part of that protection.  It is important to do your part and maintain your property and assets.  Create a maintenance check list and stick to it!  Once again....an ounce of prevention is worth a pound of cure!

Got Insurance? Phil Hawley, CEO of Hawley & Associates interviewed on Voice America Radio!

Phil Hawley, President of Hawley & Associates was interviewed on Voice America Radio on the "Your Adoption Coach" show with Kelly Ellison. Airtime was March 1st, 2014.

Phil discusses about how critical it is for adoption agencies or foster care agencies to have insurance coverage if something should go wrong. At Hawley and Associates, we specialize in providing customized insurance coverage to adoption agencies and social services agencies around the country.

Phil also talked about the importance of being covered and why it's important. If you are an adoptive parent looking for an agency, he talks about how to get your questions answered and how to be sure your agency is covered, not with just insurance, but the right insurance.

Phil takes us on a journey by sharing his personal story and how Hawley & Associates is dedicated in helping these agencies in their mission by protecting their mission.

Listen to the show now!

 

 

Great Connections At The NATSAP Convention in Las Vegas

Hawley & Associates' president, Phil Hawley and Sr. Account Manager, Cari Maciolek are working hard at the NATSAP (The National Association of Therapeutic Schools and Programs) convention this week in Las Vegas! So far, it has been a great turn out and wonderful to see so many people gather for such a great mission.

They have already met some incredible people and have learned of some exceptional programs centering around in-patient, out-patient addiction treatment, residential treatment, at risk youth services, therapeutic schools, and the like. 

Hawley & Associates' specialty, of course, is providing custom insurance products for these unique organizations.  Our access to specialty markets makes us an ideal pair and we are excited to see how we can help find these organizations the perfect coverage for their needs.  We have already make some great connections.   

If you are attending the conference this year, we would love for you to stop by and say hello! Don't forget about our drawing for the  40" Samsung flat screen TV.  :-)   

Hawley & Associates Attending NATSAP Annual Conference In Nevada

Hawley & Associates is excited to be a part of the NATSAP (National Association of Therapuetic Schools and Programs) Annual Conference in Nevada this week!  The NATSAP Annual Conference is specifically designed for mental health and health professionals of all levels. Conference attendees will include program/clinic owners, executive directors, administrators, therapists, educators, educational consultants, social workers, psychiatrists, psychologists, guidance counselors, and others impacting this ever growing industry. 

Hawley & Associates is proud to provide specialized insurance services for these types of organizations including: Residential Treatment Centers, At Risk Youth Services, Wilderness Programs, In-Patient and Out-Patient Addiction Treatment Centers, among many more. It takes exceptional knowledge of the insurance industry in order to provide exceptional coverage and service to these ever-changing, ever-growing organizations.  It's our passion...it is what we do!

If you are attending the conference, we look forward to seeing there!  Be sure to come by our booth and say 'hi' and enter our raffle for a Samsung flat screen TV!

Russia's Ban on US Adoptions Is Still Holding Firm

Russia's ban on US adoptions is still holding firm.  Here is a very interesting article regarding the ban and how it has affected some US families, looking to reunite and adopt Russian children that have won their hearts.

http://www.komonews.com/news/national/Russias-ban-on-adoptions-by-Americans-holds-firm-241029971.html

Hawley & Associates Is Very Proud of Our SEATTLE SEAHAWKS!

How could we resist not blogging about this?!  Hawley & Associates is proud to be part of the 12th MAN!  Go Seahawks!

At Hawley & Associates, we are all about teamwork!  You and your non-profit are on the front-line everyday doing what you do best, serving the children, families and communities in which we live.  Let Hawley & Associates be part of your team by providing your organization with the right insurance coverage at the most affortable price.  Our knowledge of the industry, our passion for social service and child welfare and access to specialty markets set us apart from the rest.

Hawley & Associates would like to team up and help you make 2014 a "winning season"!

   

The Season For Giving is... ALL YEAR LONG!

Hawley & Associates is proud to provide insurance services for many wonderful social services and child welfare organizations throughout the country who are dedicated to giving back to the people in our communities, and SOUTHEAST YOUTH AND FAMILY SERVICES is no exception! 

Founded in 1974, Southeast Youth is a non-profit social service agency, who's mission is to assist children, youth and families in the Seattle area in achieving safe, self-sufficient, stable and sustainable lives.  They achieve their mission by providing counseling, educational, social and life skills programs for children, youth and their families.

They are located in the Columbia City area of Seattle and serve people from all racial and ethnic backgrounds and various income levels, with the majority of families being low income people of color. 

This past Christmas, Hawley & Associates was honored to participated in Southeast Youth's annual holiday giving program. It's simple purpose is to bring a little Christmas joy to local kids who might not otherwise have a Christmas.  With no hesitation, we put on our "Hawley" santa hats and elf booties and went to work!  We hope we were able to help make Christmas just a little brighter for a few local kids.        

Thank you, Southeast Youth for the exceptional work that you do and for making a difference in so many lives, not only during the holidays...but, ALL YEAR LONG! 

Check Out Our New Quarterly Newsletter!

Click on the link below to view our new newsletter!

http://archive.constantcontact.com/fs143/1114254466215/archive/1115661743961.html

Cyber Liability Insurance for Your Non-Profit / For-Profit Business

Yet another cyber-security breach. This time, effecting Adobe Systems, Inc. and 38 million customers. It just reminds all of us on how delicate our infrastructure really is. If this were to happen to your organization, would you know what to do? Would you be prepared? Would your insurance policy cover losses incurred because of the Internet?

More and more businesses are electing to add Cyber Liability insurance to their general and employment liability policies. A good Cyber Liability policy can pick up where your General Liability policy leaves off. This type of coverage may help cover things like public relations, the cost of notifying customers of the breach, regulatory fines or penalties and even cash in hand to keep your company running until things are “business as usual”.

Hawley & Associates takes pride in assisting Social Service and Child Welfare agencies (i.e. Adoption Agencies, Foster Care, Residential Treatment Centers, Group Homes, Educational Institutes, Non-Profit/For-Profits and more!) around the world by analyzing their risks and creating a Cyber Liability policy to meet their needs and budget.

Hawley & Associates Sponsors the 2013 WACAP Children’s Hope Gala & Auction

Hawley & Associates was a sponsor at this years World Association for Children and Parents (WACAP) Children’s Hope Gala & Auction at The Four Seasons Hotel in Seattle, WA. on November 16th, 2013.

WACAP is one of the largest and most experienced international nonprofit adoption and child assistance agencies in the United States. They exceeded their fundraising goals, bringing in over a quarter of million dollars to help find adoptive families for children in need!

Hawley & Associates is proud of our relationship with WACAP and are in awe of the wonderful work that they do! WACAP is just one of many adoption, foster care and social service organizations in which we are honored to provide their insurance coverage. Our true mission is to find these organizations the best coverage at the most affordable price so they can continue to do what they do…finding children their ‘forever homes'.

What to consider when thinking about Mergers, Acquisitions & Transitions when your insurance is on a claims-made policy

If your organization is going through any of changes mentioned here, we want to emphasize the importance of obtaining an Extended Reporting Period (ERP) endorsement. You will often hear this referred to as a “Tail” and it applies to certain liability policies, such as Directors & Officers (D&O) and Professional. The purpose of the ERP is to extend the time you can report a claim after you have discontinued your policy. Otherwise, you might not have coverage for a claim reported after the end of your policy. The ERP length of time will vary by insurance company, often from 1 year to 5 years, however, in some cases you may be able to secure an unlimited time period.


Generally, insurance companies provide Professional Liability, as well as D&O on a Claims Made form, so you will need to check with your Broker to be sure. If your coverage is on an Occurrence form, you won’t have to worry about an ERP.


So if your organization is merging or being acquired by another organization or your closing down your operations you may not automatically be covered and an ERP endorsement could be necessary. Don’t dismiss the importance of purchasing an ERP. There are many circumstances where directors & officers, including executive directors, could be drawn into litigation, even years after operations have been discontinued. You don’t want to find out after the fact, that you have no insurance coverage because you didn't purchase an Extended Reporting Period.


If you have any questions or would like to discuss your situation further, please do not hesitate to give us a call. We are here to assist you with your insurance needs and concerns.

Directors & Officers Liability vs. Professional Liability

Directors and Officers (D&O) insurance is often confused with Professional Liability, the two are not synonymous. They cover different circumstances and it is important to evaluate whether you need one or the other …or both!

D&O Liability protects your organization’s directors, officers or senior executives from lawsuits and judgments that arise due to poor management decisions committed in good faith. Which may include employment practices.

Professional Liability insurance could be defined as liability for the failure to use the degree of skill expected of a person in a certain field. Also known as negligence, malpractice or errors and omissions.