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Cybercrime on the rise

Prevention is a challenge but you can insure the risk.

Did you know that 80% of CEO’s in Australia rate cybersecurity as a major priority?

Even though Australia’s unemployment rate is increasing as a whole, the demand for I.T. experts is rapidly increasing and is predicted to continue through 2018.

Cybersecurity specialists are among those in high demand, which can be linked directly to the increase in cybercrime. The ACSC (Australian Cyber Security Centre) identified that from 2016 to 2017 there were 47,000 cyber security incidents — a 15 per cent increase on the previous year.

Cyber Security Minister Dan Tehan told the National Press Club in October 2017, “business is booming for cyber criminals.

The days of the cyber threat being deployed by a hooded computer geek in a basement are over,” he said.

“Sophisticated organised criminal networks are taking control and franchising their business model.”

The ACSC found one area of focus for criminals was business email compromise through phishing emails, specifically targeting those in the SME space.

Over the course of 2016-17, reports to the ACSC indicated losses of over $20 million related to business email compromises.

This high cost is alarming, driving many business owners to purchase cyber risk insurance in order to protect their companies from loss of revenue, damage to equipment and reputational issues, which are just some of the damaging concerns with cybercrime.

It’s important to note that a cyber risk insurance policy is not included in a business insurance policy, and depending on what cyber risk policy you chose, they generally cover the following:

  • Response management – forensic services, assistance to repair company and individual reputations, breach response advisors and associated notification costs.
  • Financial consequences of lost or misappropriated customer or employee data.
  • Costs and expenses of data protection regulator’s investigation and fines.
  • The cost of restoring, recollecting or recreating data.
  • Damages and defence costs incurred in connection with a breach of a third party’s intellectual property rights, or negligence in connection with electronic content.

With many different options available, the cost to cover your business if something goes wrong may seem daunting.

Insurance premium funding can help you in these circumstances and provides the following benefits:

  • Allows you to utilise your cash flow to invest in vital parts of your business
  • Consolidate multiple premiums under one loan
  • Avoids the need to pay large annual premiums in one hit

If you’re looking to free up your cash flow and have premium business insurance, or you simply want to know more, contact us here.