With people all over the country sheltering in place to slow the spread of COVID-19, Americans are spending a higher percentage of their time online. We are looking to connect and entertain ourselves and sites like Facebook, Netflix and YouTube are seeing record numbers of visitors. With businesses closed, more people are working remotely than ever before. Businesses and schools forced to operate online are reliant upon Google Meets, Zoom meetings, Microsoft Teams and Google Classroom. The down side to the rapid increase in telework and internet usage, is that cyber vulnerabilities for hackers to exploit have also increased. As a result, cyber crime and cyber attacks are on the rise.
Cyber Crime Has Increased
Cyber crime is the fastest growing type of crime in the United States and has risen steadily year after year. However, the increase in internet usage during the coronavirus crisis, has escalated cyber crime at an alarming rate. “Prior to the COVID-19 pandemic about 1,000 complaints were received daily by the FBI’s Internet Crime Complaint Center (IC3). The FBI’s Cyber Division is now receiving between 3,000 and 4,000 cybersecurity complaints each day.” * Hackers are having field day and are using malicious emails highlighting coronavirus in order to trick people into clicking dangerous links.
Different Types of Cyber Crime
Different types of cyber crime evolve daily as cyber criminals find new and more sophisticated ways to deceive people and businesses. Some of the most common types of Cyber crime include:
- Fraud
- Hacking
- Identity Theft
- Scamming
- DDos Attacks
- Ransomware
- Computer Viruses
- Botnets
- Spamming
- Phishing
- Cyber Stalking
- Software Piracy
The Cost of Cyber Attacks for Small Businesses
Despite increases in cyber crime, many businesses have not purchased cyber liability insurance coverage and don’t consider it a priority. A recent survey by Spiceworks found that,“62 percent of organizations lack cyber insurance. Organizations without cyber insurance cited coverage was not a priority (41%).”**
Cyber attacks are growing in both frequency and sophistication and they’re costing businesses more than ever before. “Forty-three percent of cyber attacks are aimed at small businesses, but only 14% are prepared to defend themselves, according to Accenture. These incidents now cost businesses of all sizes $200,000 on average.”***Most experts agree that it is no longer a question of “if” a business will fall victim to a cyber attack or data breach but when.
Cyber Liability Insurance Can Help Protect Your Business
For most small business owners, one cyber attack could mean financial ruin. An important step any business owner can take to protect their business is to add Cyber Liability Insurance to their existing Business Insurance Package.
How do you know how much cyber insurance your business needs? The business insurance experts at McSweeney & Ricci Insurance will provide your business with a complete risk assessment, and will advise you on the proper levels of cyber liability insurance coverage for your specific needs. Together, we’ll build an effective cybersecurity plan that helps you manage and mitigate risk.
McSweeney & Ricci can also provide you with personal home cyber insurance which is an endorsement that can be added onto your existing home insurance or renters insurance policy that can protect you if you personally fall victim to cyber fraud or identity theft.
For customized cyber fraud protection to protect your business, submit for a complimentary Cyber Liability Insurance Quote from our website or connect with us by calling (844)501-1359.
Sources:
* “FBI sees spike in cyber crime reports during coronavirus pandemic” thehill.com By Maggie Miller 04/16/20
** Msspalert.com “Cybersecurity research-cyber insurance adoption” by Dan Kobialka 01/29/19
*** cnbc.com “Cyberattacks cost small companies 200k putting many out of business.”Published 10/13/19 Updated Mon, 03/ 9/20 by Scott Steinberg
