Cyber risk facts you should know
3 minute read
As our world becomes increasingly digital, the importance of strong cybersecurity measures has never been higher. Unfortunately, for many small businesses, dealing with the threat of a cyber attack is often an afterthought. IBC’s 2023 Cyber Security Survey found that 62% of small businesses believe their business is too small to be targeted by cyber criminals. However, cyber criminals don’t discriminate based on company size; in fact, small businesses are often targeted because they may have fewer defenses in place. According to Identity Theft Resource Center’s 2023 Business Impact Report, 73% of owners or leaders of SMBs experienced a data breach or a cyber attack in 2023.
You may be wondering, what can you do to be better prepared for a cyber attack against your business? Here are a few important cyber risk facts that can help your business counteract these digital threats.
You should backup all of your data regularly.
During a ransomware attack, a hacker installs a virus on your computer to encrypt your data. In order to get your data back, they demand a sum of money. If you regularly backup your data, you can be less concerned about this since you can restore to your latest backup.
However, if your last backup was a while ago, there’s a chance you’ll be locked out of your system and unable to access vital data, disrupting your business operations. To avoid paying the ransom, ensure your backups are frequent and up-to-date, so you can restore your data without significant loss.
There are many free and simple ways to backup your data. Here are some guidelines to keep in mind:
Using cloud storage has a few advantages over local storage. For example, if your external hard drive is damaged in any way, you may not be able to access your data.
Some of the applications you use might already be backed up in the cloud (for example, if you use Google Workspace), so identify the data that requires a separate backup.
Take time to organize your documents, so it’s easier to ensure you’re backing up everything you need.
Regular backups can turn potentially devastating cyber attacks into manageable setbacks, allowing you to restore your systems quickly and efficiently. For more helpful tips, visit the Norton Security website.
All customer data needs to be protected, not just financial information.
Even though businesses may be more likely to protect customer data of a financial nature, the reality is that all customer data is worth protecting equally. This is because hackers don’t need financial information to seriously damage a person’s finances. A small customer database is still a hacker’s goldmine.
If a cybercriminal obtains credit card information, how long is their window of opportunity to use it for illegal activity? While it could take a month or two for customers and companies to realize a card was compromised, odds are the card gets cancelled quickly and has a relatively short shelf life. However, what if that same hacker got access to names, emails, and home addresses, then checked online sources such as social media sites to gather enough personal information to commit identity theft? That kind of crime can take victims years to recover from.
Scenarios like the one above highlight some of the reasons that businesses have been hit with class-action lawsuits after their data was breached, even though none of the compromised information was finance related.
Class-action lawsuits aren’t the only bad thing that can happen to hacked businesses.
If a business’ customer data gets leaked to the public and the customers impacted decide not to file a class action suit, it doesn’t mean the business is in the clear.
Cyberattacks can severely damage a company’s reputation, regardless of legal action. Existing and potential customers may distance themselves from the hacked business as a precaution. Enlisting reputation-management professionals to handle the crisis can be a significant cost, and they aren’t the only pros you’d need to hire either. Recovering your compromised data from the cyber criminals and restoring it to your systems isn’t something you’ll want to do alone. Since it may take a while to get a business back up and running after a cyberattack, the amount of potential revenue lost during that process can quickly add up.
While lawsuits are a risk to businesses that have undergone a cyber attack, they aren’t necessarily the only one, as other risks can be quite problematic as well.
If you store electronic data, cyber risk insurance is important to have.
The reason cyber insurance is worth considering is because it can help a business with every nightmare scenario mentioned above. In the event that you forget to backup your data and fall victim to a cyber attack, insurance can help you deal with the financial costs. If you need to hire a reputation-management professional after your business gets hacked, insurance can also help you cover these expenses.
With TruShield, you also have access to support services provided by CyberScout, a leading data risk management service provider. This service includes consultation on proactive measures to protect your business from cyber threats, as well as reactive assistance should you suffer a breach through services such as crisis management, notification assistance, and media relations consulting.
Protect your business with TruShield Insurance
The reality is that any business, regardless of their size or resources, can be a few mouse clicks from getting cyber attacked. If you’d like to learn more about cyber risk insurance, visit our cyber risk insurance page today!
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information. Terms, conditions and exclusions apply to coverage. See policy for details.
