Safeguarding Your Business From AI-Fuelled Cybercrime
As cybercrime against businesses continues to skyrocket in Canada, the insurance industry urges Canadians toward protection and prevention from online breaches, ransomware, fraud, and scams. Today, the use of Artificial Intelligence (AI) in Business Email Compromise (BEC) phishing attacks leaves businesses particularly vulnerable, warns Jack Brooks, Head of BOXX Hackbusters and virtual Chief Information Security Officer at BOXX Insurance.
Investing in more advanced cybersecurity defences for computers, networks, and cloud services to prevent threats will be key, he advises. Consider engaging expert cyber incident responders to contain and recover from attacks, such as Cyberboxx Businessโ dedicated cyber incident responders. While prevention is the goal, unforeseen things do happen โ having adequate cyber insurance is an essential part of your businessโs digital safety.
What is a BEC hustle?
In a BEC hustle, cybercrooks exploit publicly available information to target various roles in businesses, governments, non-profits, and schools. Using machine learning and AI, hackers can identify prime targets and craft personalized emails by analyzing massive amounts of data from public info, social media, and past emails. This level of personalization makes fraudulent emails hard to detect, leading to significant financial losses. In 2023, the FBI reported US$2.9 billion in losses from BEC schemes.
4 Facts to Know
- Police-reported cybercrimes increased by almost 390% between 2014-2022, according to Statistics Canada.
- Over 74,000 cybercrimes are reported annually to police, but most such crimes go unreported.
- The estimated cost of cybercrime in 2023 was US$3.82 Billion
- The most common type of cybercrime reported in Canada in 2022 was fraud
Do You Need Business Cyber Insurance?
Given the growing reliance on digital infrastructure, every business, regardless of size, is a potential target for cyberattacks. A standalone business cyber insurance policy is crucial for protecting sensitive data, financial assets, and the overall reputation of your company. It provides coverage for losses that traditional business insurance does not, such as data breaches, cyber extortion, and business interruption caused by cyber incidents.
What Does Business Cyber Insurance Cover?
Business cyber insurance policies typically cover:
Data Breaches: Costs associated with data breaches, including notification, legal fees, and credit monitoring services for affected individuals. Cyber Extortion: Expenses related to cyber extortion threats, such as ransom payments and negotiations. Business Interruption: Financial losses due to business interruption resulting from a cyber incident. Data Restoration: Costs for restoring data that has been compromised or lost due to a cyberattack. Liability Coverage: Protection against lawsuits resulting from a data breach or cyber incident.
Top Tips to Safeguard Your Business
Train employees: Regularly train staff on how to spot phishing emails with education and simulation. Use Multi-Factor Authentication: MFA on all business accounts and employeesโ devices that access work systems, to add an extra layer of security beyond passwords.
Implement Strong Security Policies: Develop and enforce comprehensive cybersecurity policies that include preventing and responding to cyber threats. Regularly Update Software: Ensure all software and systems are up-to-date with the latest security patches to protect against vulnerabilities. Strengthen Email Filters: Invest in AI-powered tools to catch dodgy emails before they land in company inboxes. Authenticate Senders: Use protocols like SPF, DKIM, and DMARC to verify emails. Backup Data: Maintain regular backups of all critical data and ensure they are stored securely and separately from your primary systems. Conduct Regular Security Audits: Perform regular security audits to identify and address potential vulnerabilities in your IT infrastructure. Talk to Your Broker: Your broker will help find the best cyber insurance policy for your businessโs unique needs, and guide you on risk management.
A-kan insurance brokers are here to find the right protection for your business according to your unique needs. Talk to our broker today!