Cybercrime; are you protected?

Cybercrime; are you protected?

October 1, 2018

Does your small business or charity rely on a computer system? Does it contain sensitive information, including personal data and banking details? If the answer is yes to any of the above, then you at risk of a cyber attack.

It’s important to be aware of these attacks. Maybe your organisation relies on a computer system to store valuable data, such as your customers’ addresses, employees’ pay-checks, trustees’ birthdays or patrons’ banking details. So it goes without saying that the computer should be well protected- but interestingly, despite this threat, the loss of data is one of the most uninsured risks. In this article, we will look at why cyber insurance is so important, what it covers and help you to better understand the dangers of cyber crime.

Cybercrime on the rise

According to a 2018 Survey by the PwC, CyberCrime is the most commonly experienced type of fraud—this is the first year it has overtaken asset theft as top fraud! But why the continual rise in Cybercrime? As technology continues to advance, hackers are creating more sophisticated methods of stealing information every year.

Let’s say you receive an email from an external provider. All looks to be in order- the logos are in the right place, it’s addressed to you, and seems like a trusted company. It also contains external links or attachments and the email encourages you to either click on one of these links, or download the files. Whilst you may be wary of this, other people such as your employees or trustees, may not be aware of the dangers. They follow the instructions of the email with good intentions, and in doing so... everyone gets locked out of the system—the only way to retrieve your personal files is to pay a hefty amount. This type of Cybercrime is part of a Phishing-scam that installed ransomware, and is one of the many types of methods used by criminals.

Cyber Insurance- how will it benefit me?

Cyber Insurance means that you will be more prepared, should a cyber attack happen to you. From the first indication of an attack, insurers will step in right away to give the best professional advice throughout the process. Even without an attack, their advice extends to a range of circumstances- whether you need tips on protecting data or support when wondering what to do if you are recovering from attack- insurers will be on hand to help you.

But, when you are at risk of losing your valuable information and finances, you need more than just someone by your side. Many Cyber Insurance policies also cover the costs of the following:

  • If someone wants to make costly legal action-- any costs due to legal defence action will be covered and appropriate advice given.
  • After an attack, recovering your data from a backup can be expensive. Cyber Insurance means that you don’t have to worry about this.
  • Some policies can pay the ransom needed to recover your files and data, like in the example above.
  • If your systems are hacked and compromised, you may lose valuable customers or volunteers. Some cyber insurance policies can help with this loss, and/or give vital advice about the situation.

What to do next

We highly recommend that every small-business and charity take out Cyber Insurance. Your work, important to yourself and to society, is also vulnerable to this type of crime. Taking out Cyber Insurance means that your resilience to any cyber threats increases. Every organisation is unique, with a range of requirements. Whether you have a vast system of computers or only use one, we’ll be happy to discuss with you the most appropriate cover and policies available to you.

 

 

Sources: 

https://www.pwc.co.uk/

https://www.ncsc.gov.uk/charity

https://www.hiscox.co.uk/business-insurance/cyber-and-data-insurance

https://www.ecclesiastical.com/images/charity-cyber-guide.pdf

https://www.pwc.co.uk/services/forensic-services/insights/global-economic-crime-survey-2018---uk-findings.html