ACCORDING to the UK’s National Police Reporting service Actionfraud, cyber crime now accounts for over half of all recorded crimes in the UK, which is presenting challenging risks for local businesses.
Andy Hall, Cyber Risk Insurance Specialist at BHIB Insurance Brokers, has seen a huge increase in demand for cyber insurance over the last two years.
“Payment transactions are currently one of the top targets for cyber criminals who see poor cyber security an easy target for hackers,” he said. “One common scam we have been seeing recently is where a Microsoft office email account is compromised and attackers will send customers and suppliers fake invoices asking for fees to be paid into a fraudulent account. We have seen a lot of local businesses targeted during 2019 and in most cases the banks may not refund losses of this nature.
“Most organisations we talk to have already been hacked but they don’t know it, yet. Most commonly we are seeing the `human error’ factor which invites the majority of all criminal attacks.”
BHIB Insurance Brokers recommend an effective cyber risk management strategy in order to reduce the risk impact. Actions for local businesses can include:
* Cyber security training for all staff. Ensure procedures are recorded, followed and refreshed regularly.
* Ensure two-step authentication is implemented on systems used and always use secure communications.
* Avoid using generic mailbox accounts for payment administration.
* Use a recognised payment gateway for payments.
* Physical network controls/malware protection.
* Make sure data is regularly backed up.
* Keep software and security patches updated.
* Have a comprehensive incident management plan.
A cyber incident can be very disruptive and expensive to fix, leading to the loss of data, as well as major disruption to the running of a business. Below are BHIB’s Top 9 cyber crime and data security risk considerations and where cyber insurance could assist your business**:
* Human errors
* Advice on what to do when you can’t access your systems
* Stolen funds and money as a result of cyber crime
* Money stolen from your customers as a result of cyber crime
* Business interruption and reputational harm
* Forensics and data restoration
* General Data Protection Regulations (GDPR)
* Cyber liability, distress claims and group actions against you
* Public relations and brand reputation
For a free cyber risk review contact Andy Hall on 0116 2819152 or 0788 2499206 or email
** Subject to your policy terms and conditions