What Is cybercrime and cybercrime protection?
Protecting your business, your reputation, and your assets is more important than ever in today’s technologically advanced world. Criminals and hackers are at their highest level ever as cyber criminals know no boundaries. We explain these cybercrimes, how cybercrime protection works and why it is important for every business to implement this for the protection of your business’s reputation and assets.
“Consumer Data Privacy Act. Today Data privacy is a 21st Century issue of civil rights, civil liberties, and human rights and the U.S. has no policy to protect our most sensitive personal information. 70 percent of Americans believe that their personal data is less secure now than it was five years ago. In fact, over a year period, 45 percent of Americans have had their personal information compromised in a data breach with limited to no accountability for those responsible. In this article, we will discuss cybercrimes and cyber liability insurance.
Domestic Concern In the absence of a federal policy, states are developing their own privacy laws, including California with the passage of its privacy legislation in 2018 and other states are following suit. In addition, a patchwork of state standards will only lead to confusion for consumers and small businesses.” For more details, head to the consumer data privacy bill fact sheet.
Since 2018, the FBI recorded over 300,000 and an average of 900 reported cases daily. Meanwhile back in 2019, IC3 received over 400,000 and nearly 1,400 reports every day. And over the course of 2020, 155.8 million individuals were affected by having their data exposed.
There is a lot of available insurance coverage available for everyone, but there are other companies/stores that are not aware that they are exposing their business and their clients/customers. Recently, laws are being legislated as cybercrime protection to require all businesses, especially the ones that had experienced data protection breaches even though the information was not used in any fraudulent activity. Usually, these cases require the business to replace the card or the account number of the customer which costs $250. Including an option of a year of credit watch services.
A few cybercrime protection reminders:
When you are setting up a new business you might be relying too much on computers, laptops, or any gadgets that use cloud systems to store information about your business, like company plans and any future clients or customers, and even your employee’s information. These may seem to make your businesses run easier. Remember that these are the targets of any cybercriminals. Understand what the risks are and how to protect your business in vitality.
What are the common Cyber Crime Risks?
1. Ransomware or Cyber Extortion
this is malicious software that attempts to attach to your browsing. Also, this will attempt to steal your data and hold it for ransom to release an unlock code.
a. Most of this malware is attached to emails.
b. Businesses should make their employees aware of this threat. In addition, computers in your businesses need to have anti-virus software that can detect this threat, making sure that all software on your computer businesses is up to date. And also, data storage is done in a proper manner.
an attempt to capture/steal sensitive information from your clients/customers like bank records and important financial records. This threat can be in the form of an email that may appear legitimate with actual company logos. Also, there are samples of spear phishing that attack the COE directly by pretending to be a CFO and demanding immediate payment for certain resources.
a. Keep an open eye on this kind of email. In addition, if you or any member of your employee received any malicious emails immediately, report them to the IT security team and do not open any unknown company emails.
b. Ensure spam filters are active on your email clients.
3. Data Leakage
Even if it seems that cybercrimes appear to be more business-centered attacks. Also, it is very critical to comprehend the extent of breaches. The use of smartphones and mobile tablets has been the main source of communication. This has been the easiest way to store information and data. The easy usage and portability make it as well easier for thieves to take advantage of.
a. Due to this, employees that keep pertinent information should always create a passcode that no one would easily be able to guess.
b. Turn on the GPS tracking system in case the mobile gadget gets misplaced or lost. This feature would allow the owner to trace or locate the missing gadget. Use software encryption in storage gadgets.
c. Keep your mobile gadgets in your bags or keep an eye on them the whole time.
IT systems from either criminals or even rival companies are usually tempted by this method. Usually, the primary attacks are more on financial records and other personal information. But recently, even companies with business plans and intellectual properties are being hacked too.
a. The primary method to fight this is to create an infrastructure like firewalls.
b. Creating limited access to people depending on their security levels
5. Corporate Espionage
In all kinds of businesses/companies, it is unfortunate that there are employees who participate in this kind of crime.
- We can make sure we help the business by creating security levels. Giving / getting information depends on your position. Make sure vital and high-level information would not be leaked to other employees not related to the project.
- Educate employees/members to report any suspicious action of an employee.
Here are a few basic tips to make sure you and your business do not fall victim:
- Always change your passwords. Set it to expire on a certain timeframe so the system will force you to change it.
- Create passwords that are complex for anyone to guess. DO NOT USE YOUR BIRTHDAYS.
- Call your financial institution immediately if you have lost an ATM card or credit card.
- Only send communication to those who are inside the project.
- Report any suspicious actions/emails or communication to the appropriate and secured channel.
Cybercrime Protection in the Digital World Today
Surprisingly, cybercrime protection can totally make changes in businesses. Cyber Liability Insurance is a policy that is specifically designed to help and assist businesses in covering their losses. Financial aids in covering business interruption. This also covers fines and penalties associated with data breaches. These are a few of the reasons why you should acquire one.
- A lot of the policies available will help the business by paying for the business interruption which greatly helps the business. They will also cover the cost of notifying the customers down to hiring a public relations team to help the business through the ordeal.
- Coverage even data storage on services such as Cloud Storage. As secure as it may sound, these are as well prone to data breaches and the business is still liable for it and making you responsible for it as well.
Most businesses would assume that they can pin the blame on third-party providers like these. But a lot of Insurance companies now provide and offer Electronic Crime and Fraud coverage with of course limitations. These kinds of coverage can be additional fix-ins on your existing policies, this can cover customer notification and/or recovery of hacked data.
Is your company using the following? Computers or Laptops. Email Clients such as Gmail or Outlook. A production that can be controlled by a mobile device or laptop. Inventories are available with the touch of your hand. If your answer is yes to on or to all of these… Your company is totally at risk.
Before You Go
Here are some important items to look for before you sign up for any Insurance Policy regarding Cyber Liability. We have 7 Key Elements that you might want to review on your policies.
- Forensic Expenses – This item will hire an outsider or a third-party investigator to track down the criminals for you and your business.
- Legal Expenses – Due to breaches, you will need a legal representation that will help you determine the state or federal notification requirement breaches. And of course, a lawyer to represent you and help you with any legal proceedings.
- Notification Expenses – This will cover anything that you use in notifying your clients, business partners, and customers. The policy should include, postages, paper printing, and call centers to help you disseminate the information.
- Regulatory Fines and Penalties – This will help you in covering any penalties the state will declare.
- Credit Monitoring – This should include IT Theft assistance too. Even though you will not be legally required, having this sort of offering will provide an extra mile for your business and repair burnt bridges.
- Public Relations – What happened will do a lot of damage to your business. This third-party PR team will help manage how the media frenzy and restore the reputation of your company.
- Liability and Defense Costs – It’s not uncommon for class-action lawsuits to be filed against you following a breach. You will need legal representation which can be of your own choice or appointed by the carrier. Either way, coverage is available for these costs.
A lot of the Cyber Liability Insurance available now have a few of these under one policy, there are a few that have this but only add-ons to your existing policy. However, the cost, coverage, triggers, limits, and deductibles may vary depending on what policy you signed up for. We hope you learned. a lot about cybercrime protection and cyber liability insurance.
For you to learn more about what are available policies and kind of coverage for this kind of issue. You can review what is available here.
Contact us at Advantage Insurance Solutions here in Denver, CO for more information.