Why You Should Care about the Impact of Cyber Crime
Cyber-attacks and data breaches are becoming more and more common these days, with over 155 million people recently affected. With cyber crime impacting Baltimore individuals and businesses every single day, let’s look at some different ways cyber-attacks affect people and how a cyber crime insurance policy can help protect your privacy and assets.
Did you know that your stolen data can be sold online? Your financial and social media data can be bought on the dark web for just $15 to $80. While cyber-attacks can be a security threat, according to Verizon’s 2020 annual data breach report, 86% of cyber-attacks are financially motivated.
Cybercriminals target all kinds of data—from business security breaches to personal information such as Social Security Numbers, bank account information, addresses, and more. This can lead to ransomware and identity theft. For example, a buyer could file fraudulent tax returns using your information, or use your sensitive information to extort you.
A report by the Internet Crime Complaint Center (IC3) showed that cyber crime almost doubled in 2020. The costs of a ransomware attack can range anywhere from a few hundred to millions of dollars, depending on what was attacked or stolen. Managing the crisis of a cyber attack can get expensive with public relations, damaged customer acquisition rates, and litigation costs to cover.
There are two main types of losses people experience from cyber attacks:
- First Party Losses. This includes loss or damage of data, cyber extortion, crisis management, and data recovery expenses, etc.
- Third-Party Losses. These are indirect losses from liability to third parties as a result of being a victim of a cyber crime.
Cyber-attacks may not be a question of ‘if’ as much as ‘when.’ In the event that you become a victim of a cyber attack, being insured can help you mitigate your losses.
Cybercrime affects all industries and businesses of all sizes. You might think that small businesses aren’t at risk of being attacked, but the National Cyber Security Alliance found that 1 in 5 small businesses experience cyber crime, and 60% of them are unable to recover and go out of business in the next six months.
Common cybersecurity incidents are a result of hackers and malware, but also lost devices, and employee mistakes. Cybercrime insurance can help you offset all these risks to improve your cybersecurity. Proactive cybersecurity can help you find potential risks and strengthen your network quickly and efficiently.
Traditional insurance policies are not enough to cover you in the case of a cyber-attack. General liability, and errors and omissions (E&O) insurance don’t cover all the aspects of potential cyber crime attacks. With the risk of both external attacks and internal failures, a combination of preventive and mitigative measures are necessary to protect businesses from cyber-attacks.
At Luray Insurance of Baltimore, we understand the risks Maryland business owners face on a daily basis from cyber crime, ransomware attacks and much more. Our Cyber Crime Insurance provides complete coverage for businesses so you can be covered on all fronts. Request a quote or call us at 410-602-2636 to learn more.