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Extent of Cyber Attacks in Australia revealed.

Apr 27, 2017

According to the current Insurance Business article, a recent survey was conducted by the Australian Cyber Security Centre (ACSC). They surveyed 113 organisations, 90% of which claimed to have experienced some form of attempted or successful data security compromise during the 2015-16 financial year.

This highlights the need for Cyber Insurance.

Cyber Liability Insurance is designed to provide cover for liability to a business caused by a data breach in which the customers’ personal information, (such as credit card numbers), is exposed or stolen by a hacker or other criminal who has gained access to the business’s electronic network.

“The cyber threat to Australian organisations is undeniable, unrelenting and continues to grow. If an organisation is connected to the internet, it is vulnerable. The incidents in the public eye are just the tip of the iceberg.” (From The Australian Cyber Security Centre Threat Report 2015)

The Survey found that the respondents experienced numerous malicious cyber threats on a daily basis, with spear phishing emails alone affecting organisations up to “hundreds of times a day,” ZDNet reported.

The report aimed to understand how prepared Australian organisations are in the face of the growing cyber threat, the ACSC said, noting that experiencing a cyber incident is not a matter of “if”, but “when” and “what type”.

The survey also found:

  • 86% of respondents faced attempts to compromise the confidentiality, integrity, or availability of their network data or system, with 58% experiencing at least one incident that successfully compromised data and/or systems.
  • Of the compromises experienced, 42% were due to malware, 42% due to phishing, and 19% were caused by distributed denial-of-service (DdoS) attacks.
  • Attempted or successful compromises caused tangible impacts to 60% of the organisations.

“Given that only 2% of organisations reported having completely outsourced IT functions, these figures suggest organisations are not adequately focusing on monitoring networks and detecting potentially malicious activity,” the ACSC report said.

A Cyber Liability Insurance policy provides:

  • Data liability which covers the financial consequences of losing data and can cover the cost of restoring, recollecting or recreating data after a leak or breach.
  • Privacy and crisis management cover which provides cover for costs related to the management of an incident, to repair reputations, the investigation and the remediation. It also includes legal costs, court attendance and fines that might be incurred.
  • Business Interruption which covers the loss of profit due to an interruption to the business following a cyber breach.
  • Extortion liability which provides cover for losses caused by extortion (or threat of) including ransom payments and the professional fees incurred in dealing with the extortion.
  • Cyber insurance also provides: Third-party damages caused by denial of access, costs related to data on third-party suppliers and costs related to the theft of data on third-party systems. It can also include specific defacement of website and intellectual property rights infringement.
If you would like to discuss Cyber Insurance today, contact your Insurance Adviser at AustBrokers Comsure who can help you through the risks you currently face and the level of cover required. Phone: 1800 122 194 , Email.

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