It’s not if it will happen, it’s when!
Cyber attacks are ranked as the second greatest risk for businesses to be concerned about over the next 10 years, according to the World Economic Forum Global Risks Report 2020.
The world wide web has been around since 1989. As it continues to grow and change, so have businesses and the way data is handled through the internet. Instead of just physical security threats, we now have to deal with cyber vulnerabilities.
According to Juniper research, cyber crimes have cost $2 trillion in 2019 and Forbes has estimated that it will cost roughly $6 trillion in damages by 2021. Some companies are investing in cyber-security, but it’s not always enough. Companies need to be protecting themselves by training employees about avoiding online scams, not clicking on links and knowledge of ransomware attacks. Data breaches and cyber attacks are growing each year and have been costing businesses major dollars in losses.
Small businesses are not exempt from cyber attacks. In fact, according to Accenture, 43% of cyber attacks are aimed at small businesses but only 14% are prepared to defend themselves. It was mentioned that these occurrences are costing businesses $200,000 on average. The average cost of a small business data breach is $86,500, according to the internet security firm Kaspersky Labs and 60% of those affected will be out of business in 6 months.
Some additional interesting statistics provided by Fundera include:
- There was a 424% increase in new small business cyber breaches last year.
- Healthcare is the industry that’s most at-risk for cyber attacks, followed by manufacturing, financial & banking services, government, education and transportation.
- Only 22% of small businesses encrypt their databases.
- The median small business received 94% of its detected malware by email.
- 54% of small businesses don’t have a plan in place for reacting to cyber attacks.
What happens to the data?
Hackers are not usually the ones who commit identity theft. After they break in and download credit card (or personal) information, they sell it for about $5 to $20 apiece on the black market.
It’s hard to envision a world without the internet and we take so many internet-enabled things for granted. Most of us have mobile phones, and anything from laptops, routers and your Smart TV, to security cameras, smart locks, thermostats, toys and even your car can be compromised by hackers because they exchange information wirelessly.
Cyber liability insurance protects you financially from various threats against your computer and your business. It can help you recoup losses as a result of data breach including first-party liability, third party liability, media liability, full limit coverage for notification, credit monitoring, and computer forensic expense (breach management), plus breach costs, business interruption and contingent business interruption, restoration of data post-breach, fines and penalties (PCI, HIPAA, State and Federal) and free risk management.
A GNP Brokerage professional can go over what is needed to properly protect your business from cyber liability risks and repercussions.