Cyber Crime- Combating the Most Popular Criminal Trend

The landscape for theft is no longer a physical scene of knifepoint in a dark alley, it’s now gone digital.

Cyber Crime is at an all-time high, and small businesses are the #1 target. There is an increasing shift of ransomware targeting smaller businesses rather than mega corporations because of their lack of security and lack of exposure.  Businesses with fewer than 100 employees get 350% more attacks than those larger enterprises. 46% of all cyber breaches impact business with fewer than 1,000 employees. 61% of small businesses were the target of Cyberattacks in 2021. Malware is the most common type of cyberattack aimed at small businesses. 

On a personal level, Florida is ranked 2^nd in the nation for identity theft and 3^rd in the nation for Cybercrime Victim with 41,000 victims in 2023 with an average loss of $21,000.

To combat this growing trend, please familiarize yourself with the techniques Cyber Criminals use to illicit your funds and information.

Types of Cyber Crime

1. Hacking: unauthorized access to computer systems or accounts, often with the intent to cause further damage and steal information for their own financial gain. Hackers will often try to get access to the software and customer information that small businesses have on file.
2. Phishing: Impersonating legitimate entities (companies or individuals) to truck users into revealing sensitive information. I’ve seen emails that look like they’re coming from business associates asking for sensitive payroll information in hopes of getting access to bank account information.
3. Malware: Spreading malicious software (viruses, worms, Trojans, ransomware within devices or networks. If you fall prey to one of these, your computer, software, and business operations will halt.
4. Corporate Identity Theft: Stealing corporate data (names, Tax ID #s, websites) to fraudulently assume someone’s identity. They can sign contracts, impersonate your website and try to assume your business entity.

Impacts and Examples of Cyber Crime

The most obvious impact of falling prey to cybercrime is financial. They can steal bank account information, credit card numbers, and loan information. They can ruin/freeze your bank account and credit score. On a business level, criminals could gain access to customer information and impersonate you, destroying the trust and loyalty based you’ve earned over the years.

COMBATING CYBER FRAUD

Cyber Insurance:

As insurance professionals, we always recommend having a backup plan if your security measures are enough to prevent cybercrime. Understand that it’s not just your assets and information on the line. Any customer information you have on file (credit cards, address, dob) are susceptible for being stolen. If this information gets into the wrong hands, your business will be responsible.  

• Business Cyber Insurance includes coverages such as:
• Legal consultation in the case of a breach or remediation
• Theft of bank funds, escrow funds, personal funds, and extortion (ransomware)
• Corporate Identity Theft and Fraudulent Communications
• Systems damage and reputation damage
• Business Interruption
• Regulatory Fines and Privacy Liability

Security Measures

The advice given may seem obvious, but most of the time, cybercrime happens from not following these basic rules.

• Install anti-viruses and firewalls to all your personal and business computers. Regularly update software to stay protected.
• Never click on vague emails from “friends” that want you to “check this out”.
• Always look at the from address when viewing an email.
• Make your password hard to guess and change it across different sites
• Avoid giving out your email to every website you visit or every store that asks.
• Never give out your banking information except through an encrypted websites and emails.
• Never send sensitive employee or customer information through email (unless it’s encrypted)
  • Social security information
  • DOB
  • Banking Information

The battlefield for combating theft may have shifted to the digital world, but there are plenty of weapons at our disposal to ensure our safety. If you are vigilant and have the right protection, your assets should be secure in the cyber world we now live in.

The content provided in this blog are purely for information purposes only and does not constitue professional, financial, medical, or legal advice from Norton Insurance of Florida. Whiel we strive to ensure accuracy, we reccommend consulting a qualified cyber security expert in regards to improving your own security. The reference links are not intended to endorse or solict businesses or goods. Please consult with your insurance agent regarding cyber insurance your particular business may need.