As times are changing, the world has slowly embraced the digital evolution. From bank transactions to company operation and client information, traditional function and way of doing things have been permanently replaced by the complex networking of the internet of things. But for all of the cyber users, there is a new advanced threat lurking in the shadows – cybercrime and ransomware. The Bangladesh Bank robbery is the most recent example. It took place in February 2016, when instructions to steal US$951 million from Bangladesh Bank were sent through a vicious malware, called WannaCry ransomware.
Emerging Threat or Existential Threat?
As more businesses are now dealing with customer data online, criminals of the cyber world are thriving in their new found playground, taking advantage of increasing volume of online activity, infiltrating networks through ransomware to obtain data such as credit card numbers, passwords, or Social Security numbers. When this happens, the company they steal from can be held liable for the data breach, putting all industries in the world at an immediate existential risk.
An urgency for precautionary measures
This is where cyber risk insurance, or cyber insurance comes in good use. Cyber Risk Insurance can protect your business by paying for a legal defense, court-ordered compensation to affected customers, and other related expenses when your business is faced with a data breach or other cyber security incident.
Online criminal activity has steadily increased in the last decade, and celebrities are not the only victims, as security firms are regularly struggling to keep up with hacking activities. Despite all efforts, breaches do happen.
- In January 2014, as many as 110 million Target customer records were compromised.
- In August 2014, the New York Times reported that Russian hackers had gathered more than a billion Internet passwords.
- As of 2015, Kaspersky Lab found that the average small-business data breach cost $38,000.
But is Cyber Insurance for you?
Though you may think that your small business makes a minor, uninviting target for criminal activity, the opposite can actually be true. Small businesses can be subject to the same security bugs as multi-national corporations and be vulnerable for far longer, because they often lack dedicated IT teams to fix holes. Especially in Bangladesh, where foreign cyber criminals often prey on vulnerable and unaware users, employing advanced techniques unheard in developing nations. Clients, consumers and companies are at an obvious risk.
Cyber insurance, may not block an impending breach, but can prepare a company against lawsuits and payables in compensation. It is imperative to obtain cyber insurance, and to implement proper security policies and endpoint security software. This will not only ensure risk minimization but also help in filing insurance claim in case of an attack.
Green Delta Insurance Company is working to design a tailored cyber insurance policy just for Bangladesh Market. While this product is not quite ready yet, this should be a much sought after insurance policy given the rise in online workspace and cyber-attacks. Such an insurance can be the difference in being safe or being sorry.