Recent estimates put the cost of cyber crime at a staggering 600 billion per year, globally. This is a threat that's not constrained by borders or walls and it's one that can impact businesses all across the spectrum, from small mom-and-pop stores to large, multinational corporations.
Where The Real Risk Lies
The bulk of cyber risk falls primarily into one of the following categories:
- Human error
As you can see cyber crime is a multifaceted issue and the risk can lie both internally and externally. Now let's look at these categories in depth.
Human error is a significant cause of cyber risk. In fact, most cybersecurity threats come from within the company. Of these internal data breaches at least one-quarter are caused by the inadvertent actions of an employee. They weren't trying to steal information or help a competitor, they just made a mistake. A mistake that could cost you millions. Human error often involves something as simple as sending an email to the wrong address or losing a device that contains sensitive, work-related materials.
You need computers to run a business these days, even a small one. Those computers are usually full of information, information that could be very valuable to the right person. People who attempt to steal this information using computers, whether that be by directly taking control or remotely installing a virus that discreetly collects information (incomplete sentence). Hacking is responsible for billions of dollars in losses annually.
Social engineering in this context means something that involves an outside, generally malicious, party trying to trick an employee into giving them sensitive information. This often happens via email and you've probably seen some of these emails yourself. Someone from another country needs your bank account information to deposit millions of dollars or someone claiming to be a website administrator needs your password. Many of these emails are low-effort, but some can actually be quite clever. To protect against this threat it's important that you educate your employees about the common scams and how to avoid them.
Extortion is a tactic that predates information technology, but when used with the aid of a computer it can be quite effective. Hackers who practice extortion don't simply steal information, they hold it for ransom. Important data is encrypted, meaning you can no longer access it, and you are required to pay money to get it back. In most cases the encryption is sophisticated enough that you have little hope of retrieving it yourself. Either way, once you get the information back there is no guarantee that they won't simply save a copy and sell it.
Protect Your Business With Cyber Insurance
There are a variety of ways that your network infrastructure can be exploited(,) and even a business with fantastic cyber security could be blindsided by a particularly smart hacker or a particularly careless employee. Cyber insurance is designed to protect businesses from attacks like these and reduce the overall financial impact.
At Summerlin-Roberts we perform a personalized risk assessment to find out where your weaknesses lie and determine the best course of action to minimize risk. Please, contact us today to learn more about our cyber insurance policies and comprehensive cyber risk assessment.