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Cyber Crime – Will you be a victim?

Sep 23, 2014

Within a few years, Cyber insurance will likely be as standard a product such as public liability. Many organisations currently have a much greater exposure to Cyber Crime than any other risks.

If you look at a lot of industries, the current risk of a cyber incident is around 12%. The risk of a building burning down is less than 0.5%. Research has also found that 45% of Australian SMEs surveyed in April 2013 had experienced a targeted electronic attack within the past 12 months, and of those 21% had been attacked three or more times. (Source McAfee)

Having Cyber Insurance is now a part of a Directors and Officers’ responsibility.

As we are increasingly relying on new technologies:- cloud computing, mobile devices, digital wallets etc., the regulatory environment will become more demanding and complex.

The biggest exposures currently lie in the Financial Services, Healthcare and Retail industries and it is vital companies now seek this insurance cover.

EBay, Target, Sony PlayStation, Adobe, Catch of the Day and Domino’s are few of the companies who have been major victims of Cyber Crime so far.

Are you exposed?

  • Do you transact business or generate revenue via electronic means?
  • Do you outsource your storage?
  • Do you process or share confidential information with third party service providers?
  • Do you have business operations that would be impacted by a service disruption?
  • Do you publish a lot of electronic content?
  • Do you use technology for a competitive advantage?

What are the threats?

  • Using outdated software or firmware.
  • Human errors (including employee negligence, lost devices, social engineering, misdirected emails, inadvertent disclosure of passwords).
  • Attacks perpetrated by hackers/malicious acts by employees.
  • Security breaches at trusted third party service providers.

What are the costs?

  • Privacy/security breaches – obligations to notify/mitigate loss of others.
  • Digital asset replacement expenses – restoring & replacing data.
  • Loss of income due to interruptions.
  • Third party claims alleging breaches of duty to protect information.
  • Threats of extortion.
  • Third party claims around content published: i.e. defamation and infringement of third party’s intellectual property.

To discuss more about your current exposures to Cyber Crime, please contact AustBrokers Comsure on 1800 122 194.

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