The risk of cybercrime to businesses isn’t going away. And there are many cyber-attacks which may affect your businesses in 2020.
In fact, just days into the new year, travel money business Travelex was reported to have suffered a significant cyber-attack. With the impact of the cyber-attack still ongoing.
Hackers are currently holding them ransom, demanding the company pay £4.6m before they will unlock their systems. Hackers also claim to have downloaded significant amounts of sensitive customer data from the company.
The key message going into 2020 has to be don’t be complacent when it comes to cybercrime. The FSB reports that small businesses face almost 10,000 cyber-attacks daily. With the average costs of an attack at £1,300.
These figures show that cybercrime isn’t just a risk of large corporations. Whilst these may make the news, SME’s are just as at risk of a cyber-attack.
Cyber-attacks which may impact your business in 2020:
Ransomware is a common technique used by cyber criminals. It involves the use of malicious software (malware). The malware will typically block a business’s access to their systems or encrypt their data. Cyber criminals will then demand payment (ransom) before giving access back to the victim.
An example of ransomware would be the Wannacry attack which affected the NHS back in 2017.
It is thought that ransomware attacks may be more likely to be targeted at businesses than individuals in today’s environment given the potential for significant sums of money to be paid out.
Phishing attacks have been a common form of cyber-attack for a while now.
They typically utilise email as a method in which to get unsuspecting employees or users to disclose access information or gain sensitive business information.
But they continue to become more sophisticated in order to overcome security software businesses are putting in place. This makes them more difficult to spot and for employees to recognise what are and aren’t genuine requests.
This is an interesting article which looks at 10 types of phishing attacks and scams.
Internet of Things (IoT)
With an increase in the number of smart devices in the home and businesses which are internet connected (IoT) we are likely to see an increase in these types of attacks. Many of the devices may not have security installed as standard, creating a natural vulnerability for cyber criminals to attack. In fact, figures suggest that cyber-attacks on IoT devices increased 300% in 2019.
Ensuring that you know which devices are connected to your network will be vital in 2020, as will ensuring that you keep any firmware up to date in order to reduce your risk of one of these types of attack.
Will cyber insurance be important in 2020?
With the increased risk of cybercrime comes a need to protect your business sufficiently. Of course, key areas will be ensuring that you have the correct technical solutions in place to protect against attacks – firewalls, anti-virus software, keeping any systems updated etc. And having a strong training programme in place to train employees on how to spot potential attacks and to speak up if they think something is suspicious.
Yet despite the increased risk and SME’s making use of cloud-based solutions, connected devices and generally moving towards digitisation, uptake of cyber insurance is considered too low by the Association of British Insurance (ABI). With a recent report suggesting that just 11% of businesses have a specific cyber insurance policy in place.
Cyber liability insurance can provide valuable protection against cyber-attacks in many different ways:
- Cyber business interruption – loss of income would be covered if you suffer interruption to the running of your business as the result of a cyber attack
- Ransomware – in the event a hacker holds your systems ransom, cyber insurance would cover the ransom costs and provide support in managing the situation
- Hacker damage – insurance could help you fix any damage caused by hackers during a cyber-attack
- Crisis containment
GDPR places more onus on businesses to demonstrate control and protection over data that they own. Not having adequate procedures in place to protect against cybercrime could see businesses facing significant fines as well as suffering reputational loss, loss of customers and loss of revenues. So yes, at Anthony Jones we do believe that cyber insurance will only become more important in 2020. And as a broker we will be working hard with all of our customers to help them understand the role cyber insurance could play in their business.
At Anthony Jones we always reiterate to our customers that cyber- crime isn’t confined to big business. SME’s must be aware of the risks as the figures show that they are just as much of a target as large corporations. We can work with you to understand potential risks you may face as well as working to put in place cyber insurance cover to protect against these risks. Chat to us today for more information on 0208 290 9080 or email us at email@example.com.