Association of Progressive Rental Organizations

RTO a Target for Cyberthreats and Ransomware

Some industries have more difficulty tightening cyber-loss controls than others. For that reason, cybercriminals are targeting “nontraditional” industries with historically weak controls. Ransomware attacks often focus on companies that will be immediately impacted by the disruption. Rent-to-own companies can be targeted because of their limited awareness of cyber risks and their lack of cybersecurity. Let’s change that.

Cyberthreats are increasing for all organizations, but many owners and operators don’t realize they must implement prevention and mitigation tactics tailored for their needs. In other words, one size does not fit all. An incident response plan for a one-store company, for example, might be fundamentally different than for a 15+-store chain.

In the first quarter of 2020, ransomware attacks increased by 148% month-over-month, and the upward trend is continuing,1 including steady increases in cyberattacks and ransoms demanded by hackers. In 2021, malicious emails were up by 600%, and the largest ransomware payout was a world-record $40 million, made by an insurance company.2

As a result, insurance underwriters are taking a more thorough and technical look at an organization’s cyber exposures and loss controls.3 Organizations with poor cyber controls will likely experience higher premiums and reduced insurance capacity, or higher self-insured risk, assuming insurance carriers are willing to take on the risk. Those with average risk profiles may face higher premiums, as well as retention and policy exclusions. Some RTO businesses will have no choice but to tighten their cyber-loss controls and improve their risk profiles before insurance companies will consider taking them on as clients.

How cybercriminals infiltrate their victims can vary from one industry to the next. Therefore, it’s critically important to develop cyber risk-management strategies and post-event solutions that are appropriate for your company’s infrastructure and needs. Standard or “off-the-shelf” cyber policies have several inherent coverage gaps, which can mean uninsured losses for many organizations. These weaknesses can become especially pronounced in our current hard cyber insurance market.

RTO companies can mitigate the effects of the hardened cyber market:

  • Explore strategic resources and risk-management tools – like the E-risk Hub and Answerlytics™ proprietary cyber solution offered by APRO associate member USI Insurance Services LLC;
  • Engage in a cyber risk-management process, which focuses the conversation on your reality and not other general data; and
  • Ask your cybersecurity insurance provider questions about limits, claims impact, and cyber underwriting results through customized benchmarking tools for your organization.

To learn more about RTO industry-specific cyber solutions designed to protect your business from ransomware and other cyberattacks, contact Macenzi Holmes-Morton at macenzi.holmesmorton@usi.com or call (404) 441-9769.

1 VMware Carbon Black
2 Business Insider, 2021
3 USI’s 2020-2021 Commercial Property & Casualty Market Outlook
4 CyberTalk.org, 2021
5 Palo Alto Networks
6 The Wall Street Journal

This article is sponsored content and was written with the support of USI Insurance Services LLC. To have your company featured in an article, please email us at advertising@rtohq.org.

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Mike Lewis

Mike Lewis is a Premier Rental Purchase franchisee with multiple stores and currently serves as Vice President of Operations. With 33 years of experience in the rent-to-own industry, he has spent the past 20 years working closely with franchisee owners and previously spent 12 years in Corporate RTO, gaining a strong foundation in the business.

For the past five years, Mike has been sharing his knowledge by teaching managers and franchisees at the company’s Training Center.

Outside of work, he enjoys time with his family, kids, and grandkids, and appreciates the simple things in life – especially riding his Harley Davidson with the sun on his face. If you know, you know!

Lauren Talicska

Arona Corporation dba Arona Home Essentials

Lauren Talicska is an experienced multi-channel marketing specialist and the Vice President of Marketing & Communications at Arona Home Essentials. She has found her home in the RTO community, supporting stores in branding, growth, and increasing traffic.

You may recognize Lauren as a former RTO vendor, including her time as a partner for Nationwide RentDirect, or her previous participation in the APRO Vendor Advisory Committee. Lauren calls Columbus, Ohio, home and spends her workday crafting and executing marketing promotions from inception to realization, all while supporting the branding and social media needs of all the Arona stores in 12 states (plus Puerto Rico!).

Charles Smitherman

APRO

Charles Smitherman, JD, PhD, CAE, became CEO of APRO in 2023, bringing years of legal and executive experience in the rent-to-own industry. 

Prior to joining the association, Charles served as COO, General Counsel, and Vice President of PTS Financial Services, where he played an active role in the rent-to-own industry by representing his company through PTS’s club program offering with APRO member dealers. Charles is an attorney with two decades of experience across a wide variety of areas, including RTO, consumer financial services, antitrust, corporate law, mergers and acquisitions, litigation, franchise law, and privacy law. Following law school at the University of Georgia, Charles earned a Master of Legal Studies and PhD in Law from the University of Oxford in England.

Charles is credentialed as a Certified Association Executive (CAE) with the American Society of Association Executives, a Certified Franchise Executive (CFE) with the International Franchise Association, and a Certified Information Privacy Professional (CIPP/US) and Certified Information Privacy Manager (CIPM) through the International Association of Privacy Professionals. As APRO’s sixth CEO in its 45-year history, he brings a collaborative, member-focused approach to association leadership, emphasizing transparency, advocacy, and value creation. Outside of work, Charles is an active ultra runner and open water swimmer.

Mike Kays

Ashley Furniture Industries

As VP of Rental Sales for Ashley Furniture Industries, Mike thrives on building relationships with our RTO industry veterans, and helping businesses grow through new product, new marketing, and new supply chain options.

Mike works to leverage a wide breadth of relationships and influence, intimate knowledge of market trends, and unique knowledge of what RTO dealers need from a supplier to be successful.

The saying goes that a high tide raises all boats, and our goal is to leverage the world’s largest furniture manufacturer to drive the continued growth of the RTO industry and all the suppliers.

Mike Tissot

Countryside Rentals Inc., dba Rent-2-Own

Mike grew up in the rent-to-own industry under the guidance of his father, former APRO President and RTO legend Darrell Tissot. For nearly 25 years, Mike’s innovative leadership has helped expand the family business to more than 40 stores across Ohio and Kentucky while also shaping the industry as a whole.

He has served as President of the Ohio Rental Dealers Association, an APRO board member and Treasurer, and President and Treasurer of the TRIB Group. His contributions have earned him the APRO President’s Award of Excellence and the title of APRO Rental Dealer of the Year.

Outside of RTO, Mike enjoys time at the lake house or in Orange Beach, Alabama, with his girlfriend, Angela Strong McCool. A passionate Cincinnati Reds fan, he rarely misses a game, whether watching or listening alongside his parents. He also takes every opportunity to visit Arizona, where his daughter is currently attending Arizona State University.