Cyber Threats and How You Can Protect Your Business with Cyber Insurance
No matter the size of your business, it is vulnerable to data breaches and cyberattacks. If you use a computer, operate an e-commerce store or even keep any customer data electronically, your business is at risk of a cyberattack or data breach.
This is a true statement based on evidence gathered over the years of many cyberattacks on businesses and organizations. Cyber experts continue to warn of the impending attack on IT systems and how these systems are vulnerable to be exploited by cybercriminals.
As information technology advances and becomes more secure, cybercriminals are becoming more sophisticated in their attacks. This is overwhelming IT administrators as they try to keep one step ahead of cyber threats to avoid data breaches and cyberattacks, as a disruption of this kind can severely affect and even cripple the operations of a business.
It is alarming to note that even though cyber experts have been warning about cyber threats for several years, many organizations are not equipped to defend themselves from a cyberattack. A survey from IDG Research Services found that nearly 80 per cent of senior IT and IT security leaders believe their organizations lack sufficient protection against cyberattacks despite increased IT security investments. Even with the additional investments made in 2020 due to the pandemic and remote work challenges, these IT leaders still believe they are not fully protected.
According to Dice, the average cost of a data breach in 2020 was $3.86 million and what is more startling is that cybercrime will cost the world $10.5 trillion annually by 2025, according to Cybersecurity Ventures.
The magnitude of these statistics is difficult to grasp due to the significant cost of data breaches and cybercrime.
So, in what areas are businesses most vulnerable?
Top Cyber Threats
With the massive transition over to remote work and the substantial reliance on technology to provide services while accomplishing work-related activities, cybersecurity has become increasingly important.
Here are some of the areas that businesses can be exploited in a cyberattack and data breaches:
Phishing is one of the easiest attacks that a hacker can conduct and accounts for more than 80 per cent of reported security incidents. It occurs when a hacker tricks someone into providing sensitive information or accessing malware by using a false identity. This can happen through email, social media accounts, and more. In 2020, malware attacks increased by 358 per cent.
In addition to the methods use in phishing above, a new form of phishing sometimes referred to as “smishing,” occurs through SMS text messages. The attack only happens after the link within the text message is opened. While emails are typically able to identify a phishing scam and filter it out, text messages with bad links can still come through, which makes this type of attack very difficult to control.
These scams occur when a PDF attachment in an email or messaging platform contains a link to malware or ransomware. Scammers know people are more likely to open a PDF attachment than a website link, especially if it’s been labelled as a statement balance or press release.
Malware and Ransomware
Malware and ransomware can lead to hijacked software, frozen systems, and lost and stolen data. Businesses often keep data on servers that are connected to the internet, and all it takes is one crack in a company’s cybersecurity for hackers to attack and access that data. In 2020, there was a new ransomware victim every 10 seconds, according to InfosecurityMagazine.
Customer contact information, financial records, and identity records are all susceptible to hacking and theft when servers aren’t properly protected.
Credential stuffing aims to gain private access through the utilization of stolen login credentials. The most common occurrence of credential stuffing happens when the same login information is used for multiple websites and accounts.
Accidents happen. But when accidents contain confidential and sensitive information, company cybersecurity can be at risk. This type of threat is usually the result of human error rather than a hacker or malware issue.
How to Protect your Business
Ransomware and phishing will remain the primary cyber risks in 2021 and beyond. How can you protect your business from these cyber risks and others that we have highlighted?
1. Set up a Cyber Insurance Policy
If a data breach occurs or there is a cyberattack on your business, a cyber insurance policy can help you cover financial losses to your business and customers. These losses generally include expenses related to first parties and claims by third parties.
Business losses - The loss of revenue due to disruption of your business including network downtime, data loss recovery, managing the crisis, and business interruption.
Investigation expenses - The cost of covering a forensic audit of the data breach or attack by a third-party security firm.
Notification of customers and privacy issues - The cost of notifying affected customers of the data breach and monitoring of their credit information.
Extortion and legal issues - The hiring of negotiators and the paying of ransom for cyber extortion. The legal cost of the release of confidential information, intellectual property, settlements, and fines.
Contact Regional Insurance Services Inc. today to learn more about:
What is cyber insurance?
How you can protect your business
How much cyber insurance cost?
What cyber insurance covers
The top cyber insurance providers in Canada
Should small businesses take cyber insurance
Cyber insurance risks
And if cyber insurance is really worth it?
Our staff will work with you to explain all about cyber insurance and provide answers to your questions regarding cyber insurance in Ontario. We will also work on finding the right cyber insurance coverage at the right price for your business.
Tips to Protect Your Business from a Ransomware Attack
2. Set up a Disaster Recovery Plan
A disaster recovery plan (DRP) outlines a step-by-step plan to help you minimize the effects of a disaster, like a cyberattack or data breach, so that your business can get back to operating as quickly as possible. It includes what you will say to your customers and how you will communicate the incident to the media.
3. Have a Cybersecurity Workplace Culture
A cyberattack or data breach affects everyone in your organization or business. So, it is important to include them in your cybersecurity plans. Provide the necessary training to ensure that everyone adheres to strict data access and management procedures and be on the lookout for cyber threats as discussed above.
Sadly, cyberattacks and data breaches are here to stay. They will continue to increase while costing a significant amount of money in losses. The steps you take today to protect your business from the inevitable cyberattack or data breach will provide the coverage for such an attack and the peace of mind of knowing that if this should happen, you have the means to cover your losses and get back to operating your business quickly.
Contact us today to schedule your FREE complimentary cyber insurance consultation.
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