In 2015, cyber crime became the most prevalent criminal offence in the United Kingdom, affecting around 8 million people. Despite this, nearly half of UK businesses do not believe they will be a target as they may deem themselves ‘too small’ to be a valuable target. After all, when multi-national companies have so publicly found themselves subject to an attack, why bother with a local I.T company or solicitors office? Industry research however notes that more than 7 out of 10 cyber attacks target businesses with fewer than 100 employees.
On average, the cost to a small/medium sized business following a breach is between £75,000 – £311,000. What is not included within these costs are those incurred in rebuilding the damaged reputation and trust of a brand following an attack. One high-profile telecommunications company recently announced within their financial results that a security breach saw them lose 95,000 customers and £60m in revenue following the theft of 150,000 customer details. How many years and millions of pounds will need to be spent before those losses have been recovered? Cyber liability insurers may be able to be extended cover to include loss of gross profits following reputational harm as a consequence of a loss.
On a more positive note, it is believed 4 out of 5 cyber attacks can be prevented by undertaking basic security measures. For more information on cyber security and liability insurance cover, contact Brownhill Insurance Group. Our commercial team can guide you through the needs suitable for your business, with cover starting from £250.00 upwards.
The most common forms of cyber threats:
Ransomware: A malicious piece of software that locks all of the data a company’s computer systems that can only be unlocked after paying a ransom – generally between £250-1,000 or more. In early June the University of Calgary paid over £10,000 to restore data and emails that were held to ransom.
Hacking: A criminal will attempt to exploit a vulnerability within company security to access its data. This will usually take the shape of banking or card details belonging to a customer of the client.
Denial-of-service attack: A company’s website is overwhelmed by a high-volume of data being pushed to its servers, which can interrupt systems from a matter of hours to weeks at a time.
CEO fraud: A cyber criminal posing as a senior person within the company, by hacking an email account, will instruct someone with financial authority to transfer money as a matter of urgency to a specified account. According to the FBI, this has cost businesses across the globe more than £1.4 billion in the last 24 months.