You need to keep every part of your business safe, not just your physical location, right? Every business puts locks on the doors when they close their store or service center for the night in order to prevent criminals from gaining access and stealing their merchandise, tools, and other goods. It’s the same thing with the information on your company’s computers. All of those invoices, personal customer information, payment methods, bank accounts, and other things are what cyber criminals look for when they hack into your system.
So, you need to keep your confidential information locked up well and properly protected, and have a cyber-liability insurance policy, just in case.
Types of Cyber Crime
The most commonly thought of types of cyber crime include ransomware and information theft, which are the top two on this list. However, there are several other crimes that fall into this category, such as:
Ransomware – This occurs when someone in your organization clicks on a link that they shouldn’t. That link, usually disguised to look legitimate, allows cyber criminals into your computer system where they can hold it hostage for money, hence the term ransomware. Usually, once you pay them, you’ll regain access to your computers.
Information Theft – A hacker who gets into your business’ computer system can gain access to as much information as possible, using anti-encryption keys to remove the protections on your customer’s information. They then sell these names, addresses, credit card numbers, and more on the dark web.
Wire Fraud – Wire fraud doesn’t necessarily sound like a cybercrime, but it can be. If a hacker gains access to the bank accounts that you use and your computer system, they can contact your bank and have money from your business accounts wired to themselves.
Invoice Fraud – Similar to wire fraud, a hacker sends plausible-looking invoices to your company’s accounts payable person, and since it looks legit, they pay it. However, rather than sending the money to a legitimate vendor, a cyber-criminal is making off with your hard-earned money.
Social Engineering – Sometimes, clever hackers can get to know your company through someone on the inside who doesn’t realize that they’re speaking to a criminal. The criminal can then talk the employee into giving them access to information, like passwords, banking info, customer details, and other things that the criminal can then use to steal your company’s funds.
Benefits of Cyber Liability Coverage
While you may not be able to stop hackers in their tracks, only discovering the damage that they’ve wreaked after they exit your computer systems, you can protect your company with cyber liability coverage. These insurance policies can pay for many things, including rebuilding a new, fully protected system, helping recover your finances after paying a ransom or suffering from a wire fraud incident, and just about everything else that goes wrong should your business get hacked.
Have Questions? Contact Charlotte Insurance
Want to learn more about cyber liability coverage for small businesses? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.