With the digitalization of business, cyber security has become a big part of the business world. The rising number of cyber attacks, specifically in the areas of banking, medicine, and e-commerce, just goes to show how vulnerable companies are. Well, according to this article in The Hindu, Indian businesses are subjected to over 3000 cyberattacks a week, only second to Taiwan firms. This looming threat landscape, however, leaves the company no choice but to protect its digital assets and customer data.
With these threats rising, the demand for cyber insurance to protect against financial and operational loss also rises. Cyber insurance is coverage that allows businesses to recover quickly and seamlessly from a data breach, ransomware, or other cybersecurity threats. Lawyers, informing customers, and getting the system back online are why it has become a key element in today’s business risk management plan.
What is a Cyber Security Threat?
Any attempt to destroy, steal, or gain unauthorized access to computer systems, networks, or data is a cyber security threats. This includes ransomware, phishing scams, malware, viruses, or hand-packing. It takes advantage of computer systems’ vulnerabilities for espionage, financial profit, or anarchy. It’s not even that businesses could, but they could have very severe consequences ranging from data breaches to complete shutdowns.
Not all cyber security threats come from lone hackers; they also include organized cybercrime groups, state-sponsored actors, and even insider threats. Although technology, constant connectivity, and partnerships have led to many efficiencies, they have also introduced points of failure and weaknesses to the increasingly frequent and sophisticated cyber attacks.
Cybersecurity is a crucial aspect of risk management. It is crucial not only to the security of confidential information but also to that of the digital infrastructure as a whole, and it is imperative that these threats be recognized for what they are and that appropriate measures be taken.
Types of Cyber Security Threats
- Phishing Attacks: Deceptive emails or messages that trick users into revealing sensitive information like passwords or financial details.
- Malware Attacks: These involve code designed to damage or illegally enter systems, and many times they cause the loss of information or even the crash of the system itself.
- Ransomware: Ransomware infects computers, encrypting files and refusing to decrypt them until a ransom is paid. It could easily put small businesses out of business.
- Data Breaches: This hacker deal that everyone talks about now involves hackers hacking into personal information and using it for identity theft or costing companies millions of dollars.
- Cyber Extortion: This is to threaten to beat up/hack into and take or disclose any personal information and then ask for money, not to do that.
- Identity Theft: It is stealing, illegal, using people’s names and business’s names for fraudulent use, and it hurts people and companies.
Top 10 Cyber Security Threats for Indian Businesses
The bad thing about all this digitalization is that it allows for more hackers and that stuff, which is, by the way, one of the few worries for almost every company in India. One of the best security blankets a business can get is cyber insurance because it allows a company to bounce back from financial and operational losses caused by a cyber attack. The following is a list of the ten most dangerous cyber security threats to Indian businesses and how to protect against them.
1. Social Engineering
Social engineering attacks are where they manipulate human behavior to get access to confidential information or systems. These include phishing, spoofing, baiting, and whaling (for executives).
Impact: It would be too easy to trick someone into giving out their password, bank account information, or even internal company information and then use that to rob or break into something.
2. Malware
Malware is the general category for all the “bad” software (viruses, ransomware, spyware, etc.). It can hack into operations, steal information, or just flat-out damage systems.
Impact: Loss of information, stolen money, and even businesses shut down because the systems are held hostage by ransomware.
Viruses, ransomware, spyware, and all these types of malware are created to cause disruption and chaos, steal information, and outright damage systems.
Impact: Or worse yet, if some ransomware program takes control of the systems, it could result in data loss or theft, loss of money, or a possible shutdown of all operations.
3. Insider Threats
Explanation: Insider threats are already employees, contractors, or business partners with access to the company’s systems. These threats can be either accidental or intentional.
Impact: People on the inside have the power to override all security measures and could potentially leak, steal, or change any information on the inside.
4. Advanced Persistent Threats (APTs)
APTs are extended, focused intrusions on computer systems in which someone gradually works their way into the system, usually to capture information or damage the operations.
Impact: APTs are scary because they can steal intellectual property or disrupt operations for the long term and never be detected immediately.
5. Ransomware
Ransomware infects a company with a virus that encrypts all its data and holds it for ransom in exchange for the decryption keys.
Impact: Companies can lose so much data that it could cost them millions of dollars or even cause them to close their doors for a while, and even if they do pay the ransom, there is still no promise that the data will be restored.
6. Phishing Attacks
Phishing attacks are attempts by attackers to masquerade as something they are not through email, text, or a web page and trick employees into disclosing confidential information.
Impact: Some employees even released usernames, passwords, and other vital information that allowed hackers to control the systems.
7. Distributed Denial of Service (DDoS) Attacks
DDoS is short for distributed denial of service, which occurs when a company’s servers or networks are flooded with internet traffic and its systems slow down or become unavailable.
Impact: If not, the companies would be out of business for a while, losing revenue and a good image with customers.
8. State-Sponsored Attacks
State-sponsored cyber attacks are those in which a group is backed by a government and used to infiltrate critical infrastructure, certain industries, or specific businesses for political or strategic purposes.
Impact: That breach could be catastrophic, resulting in loss of intellectual property, national security, or even an entire operational shutdown.
9. Third-Party Exposure
Many firms subcontract IT support, cloud storage, software management, and other services to another company. These third parties can introduce vulnerabilities.
Impact: For example, if a third-party vendor is compromised, attackers can access your data or systems through the “back door.”
10. Configuration Mistakes
Misconfigured systems like cloud servers that are not adequately secured can leave sensitive data open to invasion.
Impact: Misconfiguration can allow hackers to enter the company’s systems and cause data loss or breach.
The Role of Cyber Insurance: Definition and Importance
Cyber Insurance (also known as Cyber Security Insurance) is a type of coverage that pays for loss resulting from cyber incidents. It cushions the impact and allows one to cope with the aftermath with greater ease.
Why is Cyber Insurance Important?
Rising Cyber Threats: Electronic threats have also changed. The corporate world is much more susceptible to data leaks, malware, phishing schemes, etc.
- Complexity: Cyber risks are complicated and usually lie beyond the everyday experience of most financial and related professional services sector leaders. Specialists generally manage these risks.
- Financial Protection: A cyberattack can lead to significant financial losses. Well, duh, with cyber insurance, companies still get some of their money back.
- Reputation Management: A breach can damage a company’s reputation. Cyber insurance will cover most of the PR bullshit to keep trying to wipe the egg off of everyone’s faces.
- Compliance with Regulations: Every field has some laws that force companies to have cybersecurity. Cyber insurance can assist in maintaining compliance.
Choosing the Right Cyber Insurance Policy
When selecting a cyber insurance policy, one should remember the following:
- Coverage Options: There are also ones that cover everything: data breaches, network security, business interruption, blah blah blah. Tailor your policy to fit your business needs.
- Limitations and Exclusions: Understand each policy’s limitations and exclusions. Not all policies cover certain types of breaches or losses, so those need to be clarified at the beginning.
- Claim Process: Investigate the claims process. It’s easy and quick, and it will save you a lot of time and stress when cram time comes.
- Provider Reputation: Stick with a company that has been around and knows what it is doing in the cyber insurance world. And reviews and star ratings, and they treat claims well.
- Legal and Regulatory Support: Make sure that it covers legal defense and fines imposed by regulators because if there is a data breach, those can easily reach millions.
- Risk Assessment Services: Some even provide risk assessment as a service to pinpoint your business’s weak points and eliminate any possible risks.
- Cost vs. Coverage: Weigh the scales, the policy cost, and what it covers. A higher premium means better coverage and feeling more secure.
- Industry-Specific Needs: Certain industries may have unique risks. Your policy should reflect your business’s specific hazards.
- Policy Limits: As long as their policy limits are as high, your business’s liability could be exposed. Higher limits can offer more protection.
- Reinsurance Options: Consider some reinsurance agreements that offer much more security in case of significant losses.
What kind of businesses would be suitable for cyber insurance?
So many different types of businesses could extensively utilize cyber insurance. Here are some examples:
- E-commerce Platforms
- Financial Services
- Healthcare Providers
- Educational Institutions
- Retail Stores
- Hospitality Businesses
- Technology Companies
- Legal Firms
- Insurance Agencies
- Manufacturing Companies
- Real Estate Firms
- Consulting Services
- Non-Profit Organizations
- Government Agencies
- Telecommunications
- Media and Entertainment
Mitigata – Your Partner in Cyber Insurance for Businesses
In today’s world, where cyberspace constantly changes and threats appear every second, Mitigata is here to help you determine exactly what type of cyber insurance you need. Our client-focused, data-driven approach will allow you to compare coverage and make an informed choice at each step of the way.
Ready to secure your business? Call now and get an estimate on our cyber insurance and ultimately save your company’s future.