Cyber Insurance 101

Cyber Insurance provides financial relief from the costs associated with hack attacks, data breaches and system failures. 

There are over 1000 Cyber attacks reported to the FBI a day.  Every business has a cyber exposure. A ransomware attack and wire transfer fraud are two of the most common cyber insurance claims.  

Ransom Attack

Hackers get businesses to download Ransomware viruses by tricking employees into clicking on phishing emails or exploiting software security vulnerabilities. Once downloaded, the Ransomware’s program is designed to lock up data, including backups, and even cloud data. The hacker then will  typically demand a crypto-currency payment to unlock the data within a time window or destroy all the data. Most all of these attacks start with a phishing email. A phishing email is an email that is designed to trick an employee to click on a link, which will start the download of the virus design to infiltrate your computer system. Many of these emails are very sophisticated. There designs can be done extremely well and it can be easy to be fooled. Be very suspicious emails that look out of the ordinary. Often times the name of the sender does not match the actual email address. The more sophisticated hacks will come directly from a name that is known to you.

Wire Transfer Fraud

Hackers manipulate senior executive officers, employees, or clients with the intention of tricking the business or their client into wiring money into the hacker’s bank account. These are often created by Businesss Email Compromise (BEC). These scams have been the costliest type of Cybercrime in the US, according to the FBI. Successful unauthorized Funds Transfer Fraud hacking methods consist of stealing login credentials via phishing or key-logging malware, financial data manipulation, and corporate identity theft. Any business that is transferring money regularly is a target.  

Nearly all successful hack attacks target human error.  Mostly done through clicking on a phishing email link that installs the malware onto your computer system.  

Costs of Cyber Crime

Being extorted for money to get your computer system to again.  For a wire transfer fraud the potential loss of the transferred funds. Business Interruption from not being able to perform your business operation.  Reconstruction of your data or computer system. The cost of notifying your customers of the breach or attack.  Cost to replace damaged computer hardware.  Hiring a potential data breach attorney.  These are some of the more common costly expenses.  

According to the FBI from 2018 to 2020 there has been a 915% increase in phishing attacks.  If you do not have cyber insurance, we can offer you a free quote.  All we need is your business name, website address and your annual revenue.  That’s it.  If you have Cyber Insurance and would like a comparison and a review of your coverage, we can provide that for you.  Cyber Insurance is a very important coverage that your business needs.   

Cyber Liability Insurance Quote

For more information on Cyber Liability Insurance or to quote your business for Cyber Liability Insurance please fill out the short contact form listed below or call/text to (763)767-0522

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Are you ready to save time, aggravation, and money? The team at Ameriguard Insurance Agency is here and ready to make the process as painless as possible. We look forward to meeting you!

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