Security Breaches and Cyber Crime Insurance

Crimes against businesses are generally on the increase, whether it is employees stealing high-end goods out of the warehouse, or criminals breaking in at night and stealing computers and other expensive office supplies and products. Then there is, of course, the growing threat related to cyber crime and thieves hacking into, and accessing, pertinent data, both personal, as well as business records.

Small and medium-sized businesses are becoming more vulnerable to cyber crime as their online financial transaction rates increase. Cyber crime insurance is the best way to deal with this growing, and ever-changing issue.

More and more, smaller organizations are becoming a common target of cyber criminals for a number of reasons. Companies of this size tend to have fewer safeguards or internal protocols to protect against these types of attacks, and they generally do not invest in employee training or company policies for cyber protection. Unfortunately, even if policies are put into place, many smaller companies tend to lack the resources to enforce those policies.

Cyber attacks occur in many different ways

The most common methods of cyber attack remain phishing (we have all joked about those emails from the Nigerian prince who needs help distributing finances); viruses attached to unsecured or unknown downloads; and open Wi-Fi accounts that are quite easy to access. Additionally, a new method called “spear phishing” is becoming a hacker favorite: these solicitations appear to come from a “trusted source” and request social security and/or credit card numbers, and other sensitive information.

Nearly all companies should now invest in a cyber crime insurance policy. These policies have come about as a way of protecting against crimes related to computer hacks and the loss of private and personal information that is garnered in order to sell the information for a profit. These acts cause damage to the individuals whose information has been stolen, and also damages the reputations of those companies caught up in this web of criminal activity.

Accordingly, when breaches occur, policyholders can now received the help they need from their insurer because they have taken the time to invest in cyber crime insurance and can rest assured that it will provide some much needed relief.