In this digital world, cyber risk is the fastest growing threat to businesses, large or small. Accordingly, organisations need to make themselves cyber resilient. One of the ways to do this is to have effective insurance in place. Mitigating cyber risk is so vitally important it’s now a top agenda item for the Australian Federal Government and ASIC. But small to medium sized businesses need to take heed too. Cyber risk affects all businesses of any size, and in any industry sector.
Quite simply, if your organisation is connected to the Internet, it’s vulnerable.
A cyber-attack is a deliberate act through cyber space to manipulate, destruct, deny, degrade or destroy computers or networks or in the information in them with the intention of seriously compromising national security, stability or prosperity. (Steadfast Oct 2015)
Attackers are getting better, faster and are accelerating more quickly than the defenders. An attack can result in network loss which can lead to loss of income plus expenses that are incurred to maintain your operation such as payroll, loss of revenue etc. The ripple effect goes on and on and the damage can be great. It’s not that much different to a business being destroyed by fire which obviously causes major interruption and likely shut down for a period of time. If you have insurance protecting you against incidences such as fire, you should think carefully about investing in cyber insurance.
Here’s an example of a cyber theft situation (just one of many) which resulted in an insurance claim. A fraudster was able to access the computer system of a supplier of goods, resulting in a loss to the insured. The fraudster used that access to create fake documents which were provided to the insured, who was duped into paying money to the fraudster.
In another claim, an Australian company was purchasing goods from a supplier in India. A fraudster hacked into the Indian company’s system and generated an invoice directed to the Australian company in the amount of US$260,000. The Australian company was expecting an invoice from the Indian company in that amount so paid the invoice in good faith. All of the details in the invoice were correct except that the fraudster had inserted his or her bank account number.
Other cyber issues can occur when a business’ computers are infiltrated by a virus that’s either new or one the business isn’t protected against. The possibilities and the risks are endless.
Have a chat to your Phoenix Insurance Broker about cyber insurance and protecting your business today. Call 9387 7399 or email us on firstname.lastname@example.org