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While You Were Off This Weekend, Hackers Breached An Insurance Company

Erie Insurance confirmed a network outage triggered by an “information security event” discovered on Saturday, June 7, 2025. The company’s cybersecurity team, which was working over the weekend, was able to detect the breach.

What’s Happening

  • Erie’s systems were shut down to contain the threat 
  • Customer portals are offline—no logins, claims, or documents 
  • Third-party cybersecurity experts are investigating 
  • Law enforcement has been notified 
  • The full impact is still being assessed 

Red Flags for Customers

Erie has warned it will not contact customers for payments during the outage—a sign attackers may use this moment to launch phishing scams. 

 

Protect yourself: 

 

  • Don’t click links or respond to messages claiming to be from Erie 
  • File claims via your local agent or by calling: 
    • 800-367-3743 (Claims) 
    • 800-458-0811 (Customer Care) 

Compliance & Legal Risks

Erie is now facing significant regulatory scrutiny:

 

  • A Form 8-K filing was submitted to the SEC, confirming the material nature of the incident 
  • State insurance regulators and privacy enforcement agencies may initiate further inquiries 

 

Potential regulatory violations may include:

 

  • FTC Safeguards Rule for inadequate security controls 
  • NY DFS Regulation if they serviced NY Customers 
  • State privacy laws such as California’s CCPA or New York’s SHIELD Act 
  • HIPAA compliance issues if any health policy data was involved 
  • PCI DSS risks if payment data systems were compromised 

 

These violations could result in multi-million-dollar fines, legal actions, and long-term company damage. 

NY DFS Regulation

What You Would Have To Do If You Were Erie

One vulnerability can lead to a company-wide audit and breach investigation. 

You can expect:

 

  • Weeks of downtime as systems are sorted and scoured  
  • Thousands to tens of thousands of dollars in breach investigation costs 
  • Multiple pages of audit information requests that must be filled in a timely manner to regulatory bodies 
  • Regulatory fines and penalties for all compliance violations which can apply multiple times if your agency falls under multiple regulatory bodies 
  • Remediation of any missed cybersecurity and technical security controls including implementation costs 
  • Notification to all customers that their data has been compromised 
  • Provide up to 3 years on average of credit monitoring services to all customers for free to them (at a rate of up $100-200 avg. per person per month for you) 
  • Reputational damage with your customers  

Stay Ahead of the Threat

Motiva Networks helps businesses secure their systems before it’s too late. 
 Our CEO, Walter, is a Certified Compliance Instructor ready to assess your risks. 

👉 Schedule your free Cybersecurity Review today:

Your Call with Walter Today
Walter-Contreras

Walter Contreras

Walter Contreras has over 25 years of experience in information technology, including cybersecurity, with a focus on the Insurance Industry. As both a computer scientist and a graduate of the Columbia University Business School’s Executive MBA program, Walter understands how the world’s digital transformation is impacting small and medium businesses. His mission is to deploy information technology to protect and empower entrepreneurs.

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