Business Cyber Insurance: The Biggest Cyber Risks for Your Business

Did you know that your online presence could inadvertently harm your finances and that of your customers, costing your business money and impacting its reputation and relationships? Business cyber insurance from DialDirect could help you avoid this. Discover what protection it can offer and how to select the best cyber insurance for your needs.

What is cyber risk?

In today's world, businesses know that having an online presence is a necessity. A website or online shop encourages customers to trust your business and answers their questions about your offerings. It also allows them to communicate with you or make an online purchase.

Unfortunately, as online platforms grow in popularity, so does the number of criminals looking to make money through illegal means. They're constantly looking for ways to exploit businesses and customers using various intelligent techniques. If your business has an online presence or relies on software and technology in its interactions or processes, you could face a cyber risk. This could involve loss, disruption or damage to your finances or reputation. It frequently involves criminals using your business credentials or systems to access customers' financial information.

It's a common assumption that cyber crime is reserved for high-earning, well-established businesses. This couldn't be further from the truth. Last year alone[1], the South African economy lost over R2 billion to cyber crime, with South Africa producing the third-highest number of cyber crime victims worldwide. We also experience more ransomware and business email attacks than any other African country.

4 of the biggest cyber risks currently facing businesses

Here are four of the most common forms of cyber crime your business could face:

1. Phishing

Phishing is when a customer receives an email or SMS that appears identical to one from a trusted source. This email usually contains an instruction or link to a web page or form prompting someone to share their banking details or other important information. While this is often sent to customers by criminals pretending to represent a business, it can also target business employees or vendors and suppliers.

2. Malware

Malware is malicious software delivered under false pretences with a specific goal in mind. Criminals disguise malware as harmless email attachments or links to software updates or useful applications. When clicked, it downloads the malware onto the computer. This can steal data from the computer, give it a virus that cripples it or infect computers on the same network. This can occur without any notifications or disturbances until it's too late.

3. Ransomware

Ransomware is a form of malware that, once downloaded on a computer, takes all or some of its files hostage, by encrypting them and requesting a ransom from the business in exchange for a key to decrypt it. Ransomware threats usually have a time-limited deadline and can quickly spread throughout a computer network, locking its users out of it before they know what is happening. Should the business fail or refuse to pay the requested ransom, the criminals will delete the files in question.

4. Data breaches

These are executed by criminals who take advantage of a business's online vulnerabilities to access information such as banking details or proprietary data. They can sell this information, use it or demand a ransom for its return. Breaches can take place via deliberate theft or sophisticated cyberattacks or a criminal accessing a stolen device or unsecured wifi network. Some data breaches are accidental, such as when an employee leaks information due to carelessness or human error.

5. Insider threats

A current or past employee can threaten a business by using their access privileges or insider knowledge to access, steal or share confidential information. They can do this to harm a business for revenge purposes or access information a competitor would pay for. As insider threats are familiar with how the business operates and can avoid raising obvious red flags, this form of cyber crime can be challenging to detect and address.

Top industries targeted by cyber crime

Your business doesn't have to be an industry behemoth or process large transactions to catch a cyber criminal's attention. E-commerce, retail, banking and finance businesses have access to financial data. Healthcare and medical organisations are also targets, as they manage records with sensitive information. Suppose your business frequently works with government departments. In that case, your business could be seen as a gateway to accessing sensitive information — especially if it can be used to cripple a major public service or entity. Finally, businesses like universities, artists or designers that deal with valuable intellectual property can be vulnerable to attack.

How business cyber insurance can protect your business

From the outside, cyber crime can seem challenging to understand and, therefore, difficult to protect your business against. DialDirect has noted the growing threat this form of crime is to businesses and has done the hard work, so you are protected. Our business cyber insurance will cover the fees associated with any legal action or case your business faces due to a cyber crime and, where possible, help you recover it. If the crime leads to any of your hardware or systems getting damaged, we'll help restore that too. We'll also notify all the parties affected by the cyber crime and help them to protect themselves from further attempts. Discover more about Common business risks faced by entrepreneurs and businesses today. 

Get a business cyber insurance quote from Dialdirect

No two businesses will face the same level and type of cyber crime. That’s why it's best to speak directly to Dialdirect to get an accurate business cyber insurance cost estimate and get the best cyber insurance for your needs. Why not contact us today to get the cyber crime cover process started?

Sources:

[1] Mail & Guardian: Higher levels of awareness are needed to combat festive season cybercrime 

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.