This year’s Parliamentary Review shows that cyber and financial crime in the UK is now estimated to cost every man, woman and child in excess of £100 per year! This figure will only increase and the global cost of this type of crime is predicted to be $2 trillion by 2019 which is a threefold increase since 2015.
We are strongly advising businesses of all sizes to consider cyber liability insurance.
In our blog series about the most common misunderstandings businesses tend to have about cyber insurance, this week we look at funds transfer fraud and system damage.
“WE DON’T COLLECT ANY SENSITIVE DATA, SO WE DON’T NEED CYBER INSURANCE…”
Cyber insurance is about much more than data breach and privacy risk.
In fact, two of the most common sources of cyber claims are funds transfer fraud and system damage or business interruption as a result of ransomware.
Funds transfer fraud is often carried out by criminals using fraudulent emails or conducting social engineering over the phone to request the transfer of funds from a legitimate account to their own.
In many cases, fraudsters will pose as a senior executive appearing to give urgent instructions to a junior employee, with emails branded to look legitimate.
Any business that transfers money electronically to and from a business bank account is susceptible to funds transfer fraud, and many of the victims of these losses hold next to no sensitive personal data.
In 2017 the WannaCry ransomware outbreak crippled many organisations within the manufacturing and logistics industries. These attacks did not involve the theft of data, but rather the freezing or damage of business-critical computer systems.
Another attack, NotPetya, is estimated to have cost businesses over £1 billion, and nearly all of that loss was due to operational disruption leading to large drops in turnover and the significant cost of rebuilding or replacing systems. The core exposure in both cases was not data breach but system business interruption and system damage.
Any business that relies on a computer system to operate, whether for business critical activities or simply electronic banking, has a very real cyber exposure.
For more information about cyber liability insurance and why your business needs it, please contact Yutree Insurance on 01638 660651.