“Oh sure, I have heard of cyber attacks but that’s not going to happen to me. I have my data protected. I don’t need a cyber policy. I am already paying plenty of premiums for all my other polices!”
As a senior claims advocate, I see the number of cyber attacks increasing every week as more clients call in to report that their information is being held for ransom. Unfortunately more times than not, clients find out there is no coverage on their current policies until after it is too late.
The head of mobile research from Prey, Inc.’s, Nicolas Poggi, compiled the below statistics.
- According to Small Business Trends, 43% of cyber attacks are aimed at small businesses.
- Panda Security discovered 230,000 new malware samples are being created daily.
- Approximately 1 million cyber attacks are attempted per day. (Carbon Black)
- Detection of a data breach will occur 197 days or over 6 months after the event. (ZD Net)
- BY 2021, it is estimated that damage from cybercrime will rise to $6 trillion. (CyberSecurity Ventures)
Scary statistics, right? So, what are some practical ways to protect yourself and your data? Below are some recommendations from Travelers.
- Be proactive:
- Back up your data
- Employee training to avoid falling prey to phishing
- Use and maintain security software
- Limit who has access to sensitive information
- Create a plan of action before the loss
- Buy insurance: Purchase a cyber insurance policy.
- Choose employees carefully: According to the 2016 Cyber Security Intelligence Index, 60% of all attacks are carried out by insiders.
Some other recommendations include using a virtual data room (VDR) when dealing with highly sensitive information (mergers and acquisition). Think of a VDR as an online room that is used in place of a physically secured room in order to share and review highly sensitive data. Another is utilizing a virtual private network when you are traveling or working remotely. With Wi-Fi access granted by almost any business, it creates a loophole for attackers to sneak in and create damage.
Interesting fact about June bugs is that the larva will feed underground up to 3 years prior to emerging. In the same way, there may be embedded issues with your system long before it is made evident. Let the June bug remind you to take action against those harmful computer bug before it becomes stink bugs because it will really stink when sensitive information falls into the wrong hands.
Ausustyn, A., Bauer, P., Duignan, B., Eldridge, A., Gregersen, E., Luebering, J.E., McKenna, A., …Zelazko, A. (1998). June beetle. In Encyclopedia Britannica. Retrieved from https://www.britannica.com/animal/June-beetle
Nwazor, Toby. (2017, January). Why your business absolutely needs a virtual data room. Accessed on May 28, 2019. Retrieved from https://www.entrepreneur.com/article/287709
Poggi, Nicolas. (2018 August). 24 Cybersecurity statistics that matter in 2019. Accessed on June 1, 2019. Retrieved from https://preyproject.com/blog/en/24-cybersecurity-statistics-that-matter-in-2019/
Travelers. 11 Steps to help protect your business from cyber extortion. Accessed May 30, 2019. Retrieved from https://www.travelers.com/resources/cyber-security/11-steps-to-help-protect-your-business-from-cyber-extortion
Author: Abigail Jenkins has worked in the insurance industry for almost 10 years. She has achieved numerous professional designations including Associate in General Insurance (AINS), Associate in Claims (AIC), Charted Property and Casualty Underwriter (CPCU), and is currently pursuing her Certified Insurance Counselor designation. She has worked both on the agency and carrier side which has provided her with working knowledge of risk management as well as claims handling experience,