Cybercrime rates are the highest they’ve ever been, and experts don’t expect that to change anytime soon. Companies are expected to not only try and reduce the frequency of cybercrime in their organization but prepare to respond to cybercrime events that are inevitable. The 2020 Internet Crime Report revealed that in the past 5 years there has been an average of 440,000 complaints and that the number grew by 330,000 in 2020. Those 5 years combined have resulted in a total loss of $13.3 Billion.
The past decade has exponentially increased the world's radar on cybersecurity threats and vulnerabilities. These years have shifted society into a primarily digital where business, social, and financial matters are typically handled through some form of an online platform. In the past two years alone, due to the pandemic, the few areas of life that remained physical are primarily digital now as well. A report by Purplesec for 2021 claimed that cybercrime has increased 600% since the start of the pandemic. While insurance agencies and those prone to threats have had a keen awareness of the rising risk, the government is also stepping up and claiming some responsibility in providing protection to the general public.
Is Cyber Insurance Worth the Investment?
Cyber-attacks have become a top threat to businesses both big and small in the last decade. Social engineering schemes, malware, and ransomware have all seen a significant uptick, especially since the start of the pandemic. According to the Identity Theft Resource Center, 2021 has already hit a record high for cyberattacks, exceeding the total amount in 2020 by more than 17%. So, with cyber threats (and the cost to mitigate them) skyrocketing, its time to consider investing in Cyber Insurance to protect your business.
When businesses think of ways that poor cyber security can lose them money, they often think of hackers breaching their systems. It’s easy to picture this as a pitched battle between the cyber criminals storming the castle walls, and the defenders seeking to repel them. Unfortunately, some cyber incidents and privacy breaches occur not through the concerted efforts of the bad guys; instead they happen due to simple mistakes and negligence by a company’s own employees.