Cyber crime: How bad can it be?
If you’ve ever thought “cybercrime? It could never happen to my business”, then you may want to read on.
Even though you might not consider your business to be tech-based, if it uses a computer, collects personal data or operates a website then it could be exposed to potential risks including viruses, hacking and Denial of Service attacks.
With 74% of small businesses having experienced a security breach in the last 12 months*, cyber security has become a key consideration for businesses of all sizes.
What are they?
The frequency of data breaches – the theft, loss or mistaken release of private information – is on the rise. Small and medium-sized businesses with fewer resources are particularly vulnerable.
Data breaches can be the result of cyber crimes, or even put down to employee mistakes. In the case of a malicious attack, perpetrators are not necessarily interested in the size of the business they are targeting – just because you are an SME does not mean you are not of interest to hackers. In fact, small organisations make tempting targets due to their store of niche customer data and likely lack of preparation for a breach.
Data losses can also be caused by simple mistakes. A surprisingly large proportion (over 50%) of data breaches are caused by insiders. Be security-conscious with laptops and smart phones, and make sure employees are aware of best practice when handling data, posting to social media and clicking on email links.
What would the impact of an attack be?
Aside from inconvenience and interruption of business, the cost of data loss can be considerable.
The average cost of the worst cyber breaches to a small business is reportedly £75,000-£311,000*, with losses stemming from business interruption as well as costs incurred by providing compensation for customers or paying regulatory fines.
Simply managing the crisis can incur reputational damage, as well as other financial expenses such as notifying all those affected, setting up credit monitoring and implementing continuing service advice facilities.
What can I do?
Having Cyber Insurance in place can reduce the potential financial impact on your business. With premiums ranging from £250 upwards, policies can cover costs of dealing with data breaches and cyber liability claims as well as business interruption losses, hardware corruption and even advice from IT, legal and media relations experts.
Get in touch with Insure Risk today to see how your business could benefit. A formal quotation can be obtained by completing a brief proposal form.
* Source: Information security breaches survey 2015, Department for Business, Innovation & Skills, June 2015