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Am I at risk of a cyber attack and more importantly am I covered?

Article, October 6, 2020
Cyber insurance covering in case of a cyber attack

With more and more business using the ‘digital world’ to run their business, it is now becoming important for businesses to understand the risks of being online. The biggest issue regarding cyber-attacks is we never know when they may affect business, how they will affect your business and the financial implications they may have on your business.

It is a myth that cyber-criminals do not target small businesses and therefore it is important to understand what a cyber-attack is, the types of attacks that could occur and the measures you could take to safeguard your business.

Cyber-attacks amongst small business are increasing each year. The latest figures from GOV.UKshow that 46% of UK business and charities reported a Cyber-attack during the year. 32% of these businesses reported that they experienced an attack at least once a week. The cost of these attacks can vary but on average cost business £3,200.

With the ongoing issue that cyber-attacks are varying in nature, it is ever more difficult for businesses to be prepared for these breaches. Since 2017 there was a 14% rise in phishing attacks and a 17% fall in viruses or other malware.

The negative impacts that these cyber-attacks had on these businesses varied, but 1 in 5 experiences losing money or data, with a staggering 2 in 5 reporting the attack negatively impacted on their business through wider business disruption or staff time being diverted.

Possible attacks on your business

Malware

Malware is malicious software that infects your computer, such as viruses, Trojan horses, spyware, adware and ransomware. This malicious software can alter or delete files as well as reformat your hard drive. Moreover, sensitive data being stolen, sending emails on your behalf and even taking over your computer altogether.

Phishing

Phishing is a method cyber-criminal use to produce fake emails, text messages and websites created to like they are from your business and look authentic. They are produced to attempt to steal personal and financial information.

Denial of Service attack

A Denial of Service (DDoS) attack is when a malicious user contacts a website or user over and over again; thus, increasing the volume of traffic to a website or server causing it to slow down for legitimate users or sometimes where the website or server shuts down completely.

SQL injection

Structured Query Language is the language used to communicate with a database. SQL injection takes advantage of this database vulnerability by allowing cyber-criminals to embed harmful code or access data within the database.

Data interception or theft

This is the most common breach of your data and is mostly caused by a company’s employees. This is where a cyber-criminal will intercept conversations, transactions and the transfer of data from the company.

A significant majority of businesses realised they were less prepared than they had hoped. In many cases, that lack of preparation will not have been around companies’ digital defences, but upon their employees. Cyber insurance will cover you for any unfortunate attack on the business to ensure you return to 'business as usual' as quick as possible.

It is important that small businesses prioritize the need for effective actions they can take to significantly reduce the likelihood of a cyber-attack and businesses should seek further information or advice on the best way forward to prevent such a thing from happening.

Businesses need a 24-hour response system that allows rapid action, including notification of those affected after an attack, as well as cleansing the system of malware. Often referred to as business continuity, resilience is about the long-term protection of revenue, and includes communication to clients about resumption of business, rapid restart planning, and pre-planning to find alternative routes to market in the event of a complete shutdown.

Your cover will ensure you are prepared to tackle any cyber-attack, should it happen and, ensure you receive the support you need and don’t bear the financial burden to put it right.

If you have any questions or queries about the above call and speak to one of our experienced staff.
02476 354569

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