October is Cyber Security Awareness Month. Does your business have a Cyber Policy? If not, you may want to consider this valuable coverage. Contrary to popular belief, big businesses aren’t the only targets for hackers…
While widely-reported hack attacks often involve big companies, small companies are also very much at risk, and generally do not have the financial resources to get back on track after an attack. To help put things in perspective:
- Almost 50% of small businesses have experienced a cyber attack.
- More than 70% of hackers target small businesses.
- As much as 60% of hacked small and medium-sized businesses go out of business after six months.
This is because the implementation of small-business cyber security measures are far less complex than that of a larger organization, making it much easier for a hacker to infiltrate their systems. However, even companies with tight cyber security measures are still susceptible to attacks via social engineering and employee phishing. These tactics account for Evolve’s #1 and #2 cyber claims: ransomware and funds transfer fraud via social engineering.
What happens in a Ransomware attack?
Hackers get businesses to download Ransomware viruses by tricking employees into clicking on phishing emails or exploiting software security vulnerabilities. Once downloaded, Ransomware's objective is to lock up proprietary data, including backups and even cloud data. The hacker then demands a crypto-currency payment to unlock the data within a time window or destroy all the data.
What happens in a Funds Transfer Fraud attack?
Hackers manipulate senior executive officers, employees, or clients with the intention of tricking the business or their client into wiring money into the hacker's bank account. Successful unauthorized Funds Transfer Fraud hacking methods consist of stealing login credentials via phishing or key-logging malware, financial data manipulation, and corporate identity theft.
Reasons to Consider a Cyber Policy:
- Cyber crime is the fastest growing crime in the world, but most attacks are often not covered by standard property or crime policies. Cyber insurance can provide comprehensive crime coverage for a wide range of electronic perils that are increasingly threatening the financial resources of today’s businesses.
- Systems are critical to operating your day to day business but their downtime is not covered by standard business interruption insurance. Cyber insurance can provide coverage for loss of profits associated with a systems outage that is caused by a “non physical” peril like a computer virus or denial of service attack.
- Data is one of your most important assets yet it usually is not covered by standard property insurance policies. A cyber policy can provide comprehensive coverage for data restoration and rectification in the event of a loss up to the full policy limits.
- Complying with breach notification laws costs time and money. Cyber policies can provide coverage for the costs associated with providing a breach notice, even if it is not legally required, in order to protect your brand and reputation.
- Social media usage is at an all-time high and claims are on the rise. Cyber insurance can help provide coverage for claims arising from leaked information, defamatory statements or copyright infringement.
- Portable devices increases the risk of a loss or theft. A laptop left on a train, an iPad stolen in a restaurant, or a USB stick going missing are all good examples. Cyber insurance can help cover the costs associated with a data breach should a portable device be lost, stolen or fall victim to a virus.
Information Provided by: Evolve MGA, one of our premier Cyber Liability carriers. To find their latest articles visit Evolve Weekly Hack Attacks.
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