Business Cyber Risks: A Comprehensive Guide

In today’s uncertain times, cyberattacks are becoming more and more common. While they are dangerous on a personal level, they can damage a business if proper steps aren’t taken to protect against them. Understanding what cyber risks are and the different ways a company can be proactive against them are key factors in keeping your company safe and operating securely.

Hackers

Hackers cost companies millions of dollars each year. Data breaches and other forms of cyberattacks can result in class action lawsuits and substantial financial pay-outs if customer lists or financial systems are breached. This type of cyberattack can cause clients to lose faith in your company and take their business elsewhere. Not only do you lose customers, but you also lose potential sales when the word gets out that you failed to protect your systems. Hackers are everywhere. It is essential to work with a competent IT professional to stay up to date on what methods are being used and how to prevent hackers from accessing your company’s information.

Hacktivism

Hacktivism occurs when a third party, foreign or domestic, hacks into your system and retrieves client files and other important information. This can include sales information, company identification numbers, Social Security numbers, and employee/customer records. It can have a devastating impact on not only your company but also anyone you do business with. Confidential information must be treated as an asset and insured as such.

Extortion

Extortion through accessing confidential information and isolating so that it can’t be retrieved is a criminal offense. It can also be extremely costly if the files or data is not recovered. This type of cyberattack can halt business operations and prevent the company from maintaining its reputation. Having the right security measures will help protect your company’s financial security and retrieve the information and prevent this type of breach from happening again.

Employee Targeting Through Spear Phishing

Employees may be targeted through a scheme called spear phishing. This type of cyberattack usually takes the form of an email and is similar to bank fraud. The email looks similar to an invoice. Once it is opened, a virus attaches itself to the company’s banking information and can then forward it to almost anyone worldwide. Security measures can also be easily disabled. It is essential that all employees be trained to recognize suspicious emails and report those they feel are suspicious.

Human/Employee Error

Human or employee error is one of the most common cyber risks. Losing a phone, laptop, or other electronic devices leaves your company vulnerable to anyone who can break the access code. Two-step authentication is one of the best ways to prevent this type of cyberattack from affecting your business. This is another area in which properly training your employee on cybersecurity is essential. Teaching them proper security protocols will help them to be more protective of not only their company property but also their personal property.

With these tips, you can properly secure your company and its sensitive information. If you need advice or have questions about how to secure and protect your assets with cyber liability insurance, contact the experts at Knight Insurance Services. We understand the devastating impact cyber risks can have on your business and will help you get the right coverage.

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