How can cyber threats affect Kiwi businesses?
How can cyber threats affect Kiwi businesses? | Insurance Business New Zealand
Cyber
How can cyber threats affect Kiwi businesses?
Kiwi insurer publishes hypothetical scenarios for different kinds of firms
As New Zealand businesses navigate an increasingly digital environment, AMI has published hypothetical scenarios for firms that may face sophisticated cyberattacks.
These attacks, targeting businesses of various sizes, can lead to severe repercussions including financial loss, reputational harm, and diminished customer trust.
Scenario 1: Ransomware Attack on a Small Retail Business
In Auckland, a small homeware retail business, AKL Retail, experienced a ransomware attack. The company’s website and customer database, containing personal data, were compromised. The attackers demanded $50,000 for decryption. Despite risks, the owner paid the ransom, regaining access but incurring substantial financial losses and reputational damage due to customer data exposure.
How AMI Cyber Insurance Could Assist – with a cyber insurance policy from AMI, AKL Retail would have had coverage for the ransom, negotiation costs, and business interruption losses. AMI’s CyberPlus policy also offers public relations cost coverage to mitigate reputational damage.
Scenario 2: Phishing Attack on a Mid-Sized Law Firm
Wellington-based XYZ Law fell victim to a phishing attack when an employee inadvertently opened a malicious email attachment. This breach resulted in the theft of sensitive client information. The law firm engaged a cybersecurity firm to recover the data and assess the damage extent.
How AMI Cyber Insurance Could Help – AMI’s cyber insurance would cover the costs of data recovery, system repairs, and potential ransom payments, subject to policy terms. The CyberPlus option would also cover public relations costs, assisting in reputation management.
Scenario 3: Invoice Scam on a Small Accounting Firm
XYZ Accounting, a Dunedin-based firm, was tricked into paying a fraudulent invoice due to email system infiltration by cybercriminals. The firm faced financial losses and concerns about further theft risks.
AMI’s Cyber Insurance Solutions – AMI’s Cyber Insurance policy would cover cybersecurity firm engagement costs and, with the CyberPlus policy’s Computer Crime optional extension, could cover the stolen amount.
Scenario 4: Malware Attack on a Medium-Sized Manufacturing Company
Christchurch’s XYZ Manufacturing experienced a malware attack due to unsafe software downloads by an employee. This breach risked financial and reputational damage and necessitated compliance with the New Zealand Privacy Act 2020.
AMI Cyber Insurance’s Role – AMI would provide coverage for cybersecurity firm costs, legal claims, fines, penalties, and loss mitigation, including PR support for reputation management under their CyberPlus policy.
Scenario 5: Invoice Scam on a Local Building Contractor
XYZ Construction in Auckland was defrauded through a manipulated invoice in an email scam. Discovering the deception late, the company faced financial losses and further security concerns.
The Protection Offered by AMI Cyber Insurance – AMI’s policy would cover data recovery, system repair costs, and public relations expenses under the CyberPlus option, helping XYZ Construction maintain operations and client relationships.
These scenarios underline the importance of robust cyber insurance in safeguarding businesses against the diverse and evolving threats in the digital landscape.
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