It is a common misconception that cyber crime only affects large corporations when in fact, this is an area that is catching a lot of businesses and high net worth individuals out.
Cyber crime costs the UK economy around £11 billion a year and it is on the rise; cyber criminals are finding more sophisticated ways of targeting our accounts and information.
Previously when we thought of crime we would think of burglary. We are all aware of the importance of protecting our material assets, however crime has evolved and we need to seriously consider the risks and look to protect ourselves.
If your business uses, sends or stores electronic data, you are at risk. Whether it be your own data or your customers information, if hackers were to gain access to this you could soon encounter significant issues. The common cyber crimes are:
- Malware – A malicious software installed in your system via phishing scams. Once installed the hacker can spy on online activities and steal private data.
- Ransomware – This is a form of malware that attacks your computer system and locks you out of your own data. The hacker will then demand a ransom payment in exchange for your data.
- Hacking – this is where the hackers access part or all of your computer system with the aim of accessing important data. They then threaten to post this on the dark web unless you meet their demands.
Whilst IT security is extremely important in trying to prevent this type of attack, there is something that you can do to protect yourself and your business should you become a victim of cyber crime.
Cyber Insurance can offer cover to protect reputational costs if data or electronic systems have been lost, damaged, stolen or corrupted. Cover includes the cost of investigating a cyber crime, recovering data lost in a security breach and the restoration of computer systems, loss of income incurred if your business has to shut down as a result of the breach, extortion payments demanded by hackers, and notification costs in the case you are required to notify third parties affected including damages and settlements and the cost of legally defending yourself against claims of a GDPR breach.
If you do not currently have this level of protection for your business, we advise to get in touch with your Insurance Broker and request a quotation. Our team can be reached on 01302 341 344 or 0114 243 9914.
By Claire Thompson ACII – Senior Commercial Account Handler