In today's digital age, businesses rely heavily on technology to manage their operations, communicate with customers, and store sensitive data. However, with the rise of cyber threats such as hacking, data breaches, and malware or ransomware attacks, businesses are increasingly vulnerable to cybercrime. As a business owner, it's crucial to protect your business from cyber threats with the right insurance coverage.
Cyber insurance is a type of insurance that provides coverage for businesses in the event of a cyber-attack or data breach. Cyber insurance policies can cover a range of costs, including:
As a business owner, you may think that your business is too small to be targeted by cyber criminals. However, the reality is that cyber threats are increasing in frequency and sophistication, and no business is immune. Here are some reasons why your business needs cyber insurance:
A cyber-attack or data breach can be costly for your business. Cyber insurance can help cover these costs and provide financial protection for your business:
Depending on your industry, your business may be required to comply with specific regulations related to data security and privacy. Cyber insurance can help ensure that you meet these requirements and avoid penalties for non-compliance. Some regulated industries include:
Knowing that your business is protected in the event of a cyber-attack or data breach can give you peace of mind and allow you to focus on running your business.
Cyber attacks come in many forms, and it's essential for businesses to be aware of the most common types of attacks. Some common types of attacks include:
A cyber criminal may send an email to an employee that appears to be from a legitimate source, such as a bank or a company IT department. The email may ask the employee to click on a link and enter their login credentials, which the cyber criminal can then use to gain access to sensitive information.
Deceptive phishing: Cyber criminals send emails that appear to be from a trusted source and ask the recipient to click on a link or download an attachment that steals their login credentials or installs malware.
Spear phishing: Cyber criminals send personalized messages to a targeted victim from a trusted source, such as a colleague or business partner, that contain a request for sensitive information or a link to a fake website.
Whaling: A type of spear phishing that targets high-level executives and requests sensitive information, such as financial data or login credentials.
Clone phishing: Cyber criminals create a fake email that appears to be a legitimate message the victim has previously received, containing a link or attachment that steals their login credentials.
Smishing: A type of phishing attack that uses text messages, where cyber criminals send a text message that appears to be from a legitimate source and ask the recipient to click on a link or provide sensitive information.
Malware can be introduced into a business's systems through a variety of methods, such as downloading a malicious attachment or visiting a compromised website. Once the malware is installed, it can allow the cyber criminal to steal sensitive data, such as credit card numbers or personal information.
Trojan horses: Malicious programs that trick users into installing them and give cyber criminals access to sensitive information.
Spyware: Malware that secretly monitors a victim's computer activity, allowing cyber criminals to steal sensitive information.
Adware: Malware that displays unwanted ads or pop-ups on a victim's computer, often leading them to click on malicious links.
Fileless malware: Malware that operates in a computer's RAM or system resources, making it difficult to detect and remove, and allowing cyber criminals to steal sensitive information.
A cyber criminal may use ransomware to encrypt a business's data, making it inaccessible to the business. The cyber criminal will then demand a ransom payment in exchange for the decryption key that will restore access to the data. Backing up data regularly can keep data losses to a minimum.
It's important for businesses to be aware of these types of cyber attacks and take steps to protect themselves, such as implementing strong security protocols, regularly backing up data, and educating employees on how to spot and avoid potential threats.
Many small business owners believe that only larger companies are the target of cyber attacks. This is not the case. While larger businesses are still a target for cybercriminals, small businesses are commonly targeted.
Small businesses are commonly targeted with social engineering attacks because they often have fewer resources to dedicate to cybersecurity measures and training for their employees. Social engineering attacks are a type of cyber attack that relies on tricking individuals into divulging sensitive information or taking actions that compromise security.
Cyber criminals can come up with incredibly sophisticated ruses to steal from businesses. One example is a small bakery that received an email order of $20,000 from a large conference centre on the Friday before a long weekend. The owner of the bakery was a little taken aback by the order and called the person on record for the conference. The person who answered the phone stated that they had just left for the weekend, but assured the business owner that that in fact was the contact information for the organizer.
Not wanting to miss out out on this large order volume, the bakery worked all weekend and depleted many key supplies to make it happen. A delivery van showed up first thing Monday morning to pickup the order. The team loaded up the order, signed the in transit slip, and celebrated a job well done.
The accounting firm for the bakery invoiced the conference centre, but they denied ever having made the order. After some back and forth between the two parties, they had finally determined what had happened.
A cyber criminal had investigated and researched both businesses incredibly thoroughly. They knew who would be responsible for ordering. They knew that person wouldn't be around that day before a long weekend. They knew the bakery would be motivated to fulfill the order. They knew that the delivery van ruse would work. Every step of the way, the cyber criminal knew what was to come.
This situation left the bakery out thousands of dollars in supplies and staff hours with no way to pay or even recuperate costs. A cyber insurance policy can help cover the costs of social engineering attacks in addition to malware attacks.
When selecting a cyber insurance policy for your business in Alberta, it's important to consider several factors. These include:
In today's digital world, cyber threats are a real risk for businesses of all sizes. As a business owner in Alberta, it's crucial to protect your business with the right insurance coverage. Cyber insurance can provide financial protection, compliance with regulations, and peace of mind. When choosing a cyber insurance policy, consider the coverage limits, deductible, exclusions, and reputation of the insurance provider to ensure you get the right coverage for your business needs.
Get in touch with the cyber insurance experts at Armour Insurance.