Cybercriminals LOVE Your Small Business June 10, 2019 Share Here's how you can stop them Times sure are different. Remember when the biggest security threat to a small business was a robbery? You took security measures to prevent break-ins and physical theft by implementing locks, cameras and alarm systems. While that’s certainly smart to do, there’s a quickly evolving security threat you need to take action against: cyberattacks Cybercrime by the Numbers 60% of Small businesses shut down within six months of a cyberattack. (U.S. National Cyber Security Alliance) Approximately 1 in 40 small businesses are at risk of a cyberattack. (Symantec) 62% of all cyberattacks are on small and mid-sized businesses. (IBM) In 2015, cyberattacks amounted to $1,070,711,522 in reported losses. (U.S. Department of Justice) Types of Cyberattacks Those statistics are scary, especially if you think about them in terms of your own business. Even scarier? The ever-growing variety of methods cyber criminals use to compromise your network and data. Here are some common ones: Computer attack Cyber extortion Data compromise Identity theft The Big Picture To further illustrate the severity of cybercrimes, Hartford Steam Boiler put together examples of different cyberattacks and their potential costs to your business. Computer Attack/Data Compromise An employee installed peer-to-peer file sharing software on a company computer. Identity thieves manipulated the software to access client records. After consulting with an attorney, the insured learned that he was obligated to notify his clients of the breach. Total Cost of Computer System Remediation and Data Breach Notification: $70,000 Cyber Extortion While trying to balance the books, a business owner received a strange pop-up on his laptop. A ransomware virus locked the system until an extortion demand of $600 was paid. After consulting with the insurance carrier, the insured decided to pay the demand to unlock the system. Total Cost of Extortion and System Remediation: $2,400 Data Compromise A burglar broke into an accountant’s office and stole a computer with clients’ tax records. The insured’s clients were in four states, and he needed assistance in meeting the various state law notification requirements. Clients were urged to contact their banks and place fraud alerts on their credit files. Total Cost of notification and Services: $28,000 Insurance Coverage Matters The smartest way to protect your business from these stressful, costly claims is by investing in cyber insurance coverage. While there are many different types of cyber insurance on the market, GuideOne offers a comprehensive solution for small businesses, Cyber Suite Coverage. Designed with you in mind, Cyber Suite provides comprehensive coverage in one package. Here’s a sampling of what’s included: Data Compromise Response Expense Coverage Computer Attack Coverage Cyber Extortion Coverage Data Compromise Liability Coverage Network Security Liability Coverage Identity Recovery Coverage Access to TechQ, a complimentary diagnostics service Access to eRiskHub®, a risk management portal Be sure to ask your agent about the importance of cyber insurance. To learn more, contact us anytime. For a complete statement of terms, conditions, coverages and exclusions, please see the policy contract. Claims examples are for illustration purposes only. Do no reproduce or post online, in whole or in part, without written permission. Filed under Small Business Nonprofit Tags Cyber Security Crime & Violence Prevention © 2022 The GuideOne Center for Risk Management, LLC. All rights reserved. This material is for informational purposes only. It is not intended to give specific legal or risk management advice, nor are any suggested checklists or action plans intended to include or address all possible risk management exposures or solutions. You are encouraged to retain your own expert consultants and legal advisors in order to develop a risk management plan specific to your own activities.