In a world of data breaches and hacks, cyber security is important for everyone with an online presence, more so for businesses with the responsibility to protect customers. Brand trust is one of the main factors customers consider when buying a product or commissioning a service. In today’s hyperconnected world, word of mouth from a happy consumer can have a great impact on the success of a business, and a negative review resulting from poor cyber security practices can impact the trust factor you want for your business.
Who should be concerned about cybercrime?
In today’s digital world, all organisations, big or small, including SMEs, are at risk of a cyberattack. The following five industries are more susceptible to cyberattacks:
- Small businesses are at greater risk of phishing and malware attacks simply because they don’t have the resources to install cyber security.
- Cyberattacks have also increased in the healthcare sector since the COVID-19 pandemic, where security breaches have resulted in the denial of service and in ransomware.
- Because they store highly sensitive information, government agencies are also targeted by cyber criminals and ransomware makes up most cyberattacks on government agencies.
- Financial institutions, with mobile banking apps, are at greater risk of cybercrime such as server attacks and data theft where hackers use malicious codes to infiltrate servers and steal financial information and money.
- With the increased use of technology in teaching and learning, the education sector is also at risk of cyberattacks via spam and phishing emails.
Implications and risks of not having cyber insurance
How do I know if my business requires cyber insurance? The answer is simple. If you possess or have experienced any of the following, you are at risk of cyberattacks and you need cyber insurance:
Your business stores credit-card data: You could be exposed to security breaches in terms of your customers’ confidential information, running the risk of liabilities occurring from breach of their privacy.
Your business stores or processes sensitive third-party data: You could have contractual liability in the event that third-party data is leaked, in addition to harming the brand’s reputation.
Your business uses a transactional and interactive website/e-commerce platform: This means you could face regulatory penalties if a breach were to occur.
Your business uses a cloud service provider to store sensitive information: You could be held accountable for any information lost during a breach of the system.
Cyber security for your business. Why should you care?
Cyber security is important because it protects you and/or your company from potential cyberthreats, which are on the rise as we rely more on digital connections in our personal and professional lives. The advancement of technology has left many people vulnerable to crimes committed by cyber criminals, such as hacking, data theft and damage, and even industrial espionage.
Cyber security encompasses all technologies, methods and processes to defend computer systems from cyberattacks. Not only does cyber security bring peace of mind to you as the business owner, but it also adds that layer of protection your employees need when they’re working remotely.
Educating your employees on cyber security practises
As a business owner, besides attending to the cyber security needs of your business, one of the greatest things you can do is to equip your employees with knowledge. Onboarding a new cyber insurance policy is the perfect time to create knowledge and awareness for your teams.
Employees need to be able to:
- Understand your password philosophy and minimum requirements
- Recognise the signs of phishing.
- Look for signs of suspicious behaviour on their laptops and other devices.
- Monitor for unusual sounds on devices, such as clicks and unexplained static.
- Although IT departments can provide technical assistance, employees should be encouraged to take an active and empowered role in watching videos, attending seminars and attending awareness programmes set up by their organisations.
Why choose Santam’s cyber insurance?
As a business moves more towards e-commerce and an even greater online presence, it becomes increasingly important and more prudent to be protected from cyber criminals.
One great advantage of having cyber insurance is that it enables a business to bounce back from any business interruptions and financial loss incurred as a result of a cybercrime. Cyber insurance also helps with the practical side of getting IT experts to restore systems, recreate data and pre-empt new threats.
Cyberattacks without insurance can result in:
- Liability for accidental loss of data.
- Liability for loss of data and its consequences by deliberate, dishonest, negligent and fraudulent means.
- Accidental damage caused by computer-driven property or equipment.
- Loss or damage caused by failures or computer malfunction.
- Loss, damage, and liability caused by algorithmic errors and malfunction.
- Loss of intellectual property, reputation and business opportunities.
Knowledge is power when it comes to matters of cyber security. Equip yourself as a business and protect and empower your people with the peace of mind that comes from cyber insurance.
For more information on cyber insurance, please visit www.santam.co.za.