If you're using the internet to run your business, you are vulnerable to cyber attacks. Unfortunately, this type of crime isn't a distant possibility; it's a present reality. Did you know that these cyber attacks cost businesses around $4.35 million on average in 2022? That's a lot of money! And about half of all Americans had their online accounts hacked in 2021.
Shockingly, many businesses don't have any insurance to protect themselves from these attacks. The cyber threat landscape is evolving rapidly, and traditional security measures may not suffice. That's why it's important to have a comprehensive cyber insurance policy—it's like a shield for your business in case of an online attack.
4 Types of Cybercrime, Explained
So, what do these attacks look like? We’ll break down the four most common cybercrimes— phishing, ransomware, malware, and social engineering— so you know what to watch out for to keep your business safe and secure.
Phishing: Phishing involves scammers pretending to be trusted entities to get sensitive information. In 2017, employment phishing scams surged during the job market crisis, demonstrating the adaptability of cybercriminals in exploiting vulnerable situations.
Ransomware: This type of cybercrime is precisely what it sounds like: hackers infiltrate your computer system, gain access to crucial files, and then demand a ransom for their return. This threat isn't limited to small businesses; even large corporations can fall victim. For instance, McDonald's faced this ordeal when a hacker group called Snatch, linked to Russia, claimed they stole 500 GB of data from the McDonald's Corporation's Chicago headquarters.
Malware: Malware is harmful software that's meant to steal your information, mess up your computer, or let hackers get into your system without you knowing. Even the most robust security systems can find themselves vulnerable to these attacks. In early 2021, Microsoft disclosed the discovery of exploits targeting on-premises Microsoft Exchange Server, allowing attackers to breach email accounts and implant malware. Tens of thousands of organizations worldwide were affected, showcasing the significant impact of malware attacks on businesses' operations and security.
Social Engineering: Social engineering is similar to phishing but involves impersonating someone you know to manipulate you into giving sensitive information or account access. The worst part is that scammers can leverage AI to make their fraud even more convincing. Take this deepfake attack on a UK energy company for example. In March 2019, the CEO was contacted by a caller who perfectly mimicked his boss's voice. The conversation was so convincing that the CEO transferred $243,000 to what he believed was a legitimate "Hungarian supplier", only to discover later that the bank account belonged to a scammer.
Cyber Insurance vs. Data Breach Insurance
Now that you understand how cyber attacks can infiltrate any company, big or small, let’s discuss prevention methods. Cyber insurance and data breach insurance are two excellent ways to ensure that you protect yourself, not only against cybercrimes that directly impact you, but also those that can affect your vendors or customers.
Data breach insurance provides first-party coverage, which means it covers losses resulting from attacks that directly impact your company or consumers. This type of policy can protect you in the case of business interruption, loss of data, or ransom payments, allowing your business to continue running even in the worst-case scenario.
Cyber insurance policies offer third-party coverage which protects against legal claims and financial liabilities from cyber incidents. It includes legal defense costs, settlements, regulatory fines, and damages to affected parties. This coverage can protect your business from potential legal and financial repercussions, reinforcing your security measures.
Who Needs Cyber Insurance?
If your business uses computers or the internet to store important data, then you need cyber insurance. You may already have a general liability insurance policy, but those typically don’t cover cyber attacks—which makes cyber insurance a crucial part of your company’s cyber risk management strategy.
Start Your Cyber Insurance Quote Today
Running a business is hard enough without worrying about cybercriminals stealing your valuable assets. At Zinc, we've got your back, offering cyber insurance that's as tough as the Zinc element itself. Our dedication to protecting your digital assets will ensure your peace of mind. Reach out to us today for a personalized quote and let us help safeguard your business against phishing, ransomware, malware, and other cyber risks.
