Cyber Fraud & Cyber Insurance

In today’s world, technology is vital in order to conduct business. However, this very same technology can also leave your business vulnerable to very costly security threats. Cybercriminals have become very sophisticated and the frequency of cyber crime is on the rise, as well as the financial consequences. It used to be easy to spot a fraudulent email: a massive windfall from a lottery you’ve never heard of, an inheritance from a long lost relative. Now, they are virtually impossible to spot.

According to the FBI, between October 2013 and May 2018, some $12.5 billion was lost worldwide due to funds being transferred following a type of scam called “business email compromise” (BEC). This involves the use of deception to manipulate individuals into carrying out a particular act, such as transferring money, handing over confidential information, or clicking on a malicious link. Any business that transfers funds electronically can be exposed to losses of this nature.

In Ireland, cybercrime is double global levels, with four out of ten organisations failing to assess the risks adequately. Many businesses feel they do not need cyber insurance because they believe they have good IT security in place, such as firewalls and anti-virus software. However, according to IBM, 95% of successful cyberattacks and incidents are the result of human error.

The first step for any business when protecting against cyber risks is to establish a partnership with a competent IT service provider that can provide secure hardware and software including backups, firewalls and virus software. Also, a good IT partner will provide staff training and advice.

Cyber insurance can act as an important tool to protect companies against cyber risks. In addition to compensation for losses, one of the most important benefits of cyber insurance is the emergency access it provides to specialist IT forensics, data security companies, top law firms and top PR firms. These supports can be invaluable to businesses as they try to deal with the anxiety of a cyber event.

Martin Insurance provide cyber insurance that includes cover for data breaches, cybercrime, cyber extortion, ransomware attacks, hacking, identity theft, systems business interruption and liability for content posted on own or third party sites or blogs. Premiums start as low as €500. If you would like a quotation, please call us on 049-4332944 or e-mail info@martininsurance.ie.

Disclaimer: The material contained is this article is for general information purposes only and does not constitute professional advice.