Rise In Cyber Crime

Growing trends of cyber crime in the UK
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Cyber crime has been making headlines for quite many years now, especially when large corporations are involved. The losses incurred as a result of cyber attacks are not just operational, but legal and reputational as well. However, a fundamental fact that doesn’t get reported upfront is that small and medium-sized business have equally been at the suffering end of the menace known as cyber crime.

Here’s a look at the latest statistics unveiled by the UK government (source: Cyber Security Breaches Survey 2017 by gov.uk)

  • A staggering 7 out of 10 large businesses were targets of cyber attacks in 2017.
  • If the records of 2015 and 2016 are compiled, two-thirds of SMEs have succumbed to cyber risks and lost revenue.
  • If we take into account all businesses across the UK, close to 50% have been victims of cyber crime in the past year.
  • While the losses suffered differ from business to business, the range was somewhere between 20,000 GBP to a staggering million GBP.
  • From the 91 million annual security breaches faced by IT giants like IBM, to the massive rise of phishing attacks faced by online financial service providers, no business is completely safe today.
  • Cyber Fraud in itself, accounts for 47% of UK’s total crimes as of today. As companies increasingly rely on internet-based services such as cloud computing and automation in general, this percentage is only expected to rise in the coming years.

Understanding the Nature of Cyber Risks

Remember, the size or scale of your business is of hardly any significance for hackers. Many experts are of the opinion that for cyber criminals a small business is actually big business because it is relatively easier to hack with no particular crisis management protocol in place. Even if your company operates at a local level, using just an email and a website, the probability of a cyber attack can never get ruled out.

To understand the nature of cyber risks, here are the top business models that are susceptible to the rising wave of cyber crime today.

  • Storage of sensitive customer data like name, address, phone number and bank details
  • Dependence on IT systems/cloud storage/websites for core business operations
  • Involved with Payment gateways, Point of Sales, Credit Cards, E-Wallets, etc

The above points seem to indicate that only certain business types such as e-commerce companies, credit card companies and online bankers require cyber insurance. But as you dive in a little deeper, you will realize that even traditional businesses such as a marketing firm, an architectural firm, a photo studio, etc. are at threat, because they store confidential client data with a privacy contract.

Top Cyber Crimes affecting businesses today

Not just within the UK, but across the world, businesses are becoming increasingly susceptible to cyber crime. Here’s a brief look at the top trouble-mongers in the cyber space:-

  • Direct System Attacks using existing loopholes
  • Malware Attacks
  • Identity Thefts
  • Service Denial Attacks
  • Phishing
  • Human Error leading to unauthorized access

Stay safe with Cyber Crime Insurance

Only through introspection and systematic risk analysis conducted by a cyber expert will tell you exactly which cyber risks your business is most vulnerable to. Once you have the complete list of potential risks that can threaten your business, the only logical way ahead would be to get cyber insurance.

A comprehensive, bespoke Cyber Crime Insurance Policy will not only safeguard your business against cyber crimes but will give you the peace of mind required to run your business with a free hand. My Cybersurance will be glad to assist you in this regard. Feel free to get in touch now!

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