When cybersecurity comes to mind, many people think of foreign hackers trying to breach large corporations' networks. Everyone remembers the Russian attack on the Las Vegas Casinos last year. That cyber incident even took down reservation systems for the restaurants. The financial losses were large, and it wasn't just because of the ransom payments.
While those large scale cyber events certainly happen, cyber threats for small and medium-sized businesses are also increasing at a steady pace. Cybercriminals are getting more creative and more efficient in executing various scams to extract money from businesses just like yours. They know that extracting amounts that stay below the radar allows them to profit without as much risk as the big ransomware attacks that make the news. And they don't care if it means crippling your business in the process.
Gone are the days when cyber threats were only about manipulating invoices on your exchange server or hacking into your network to steal financial data. These days, criminals are finding innovative ways to obtain your banking information so that they can get to the accounts at your financial institution. A personal story will help you understand what this kind of digital threat might look like.
Last week, my wife received an envelope in the mail at her business. She runs a pediatric practice here in Dallas-Ft Worth. Inside the envelope was a paper invoice that was for a little over $500. For most medical offices this size of invoice is a very small amount. They wouldn't think twice about paying an invoice like this with very little investigation.
My wife's practice is not your normal practice though. She is a solopreneur who scrutinizes every bill whether it is big or small. When she saw a paper invoice, which she never receives, from a suspicious company in North Carolina, alarm bells went off in her head. When she looked at the line items and saw steri-strips and syringes, the bells transitioned to full blown alarm sirens. She knew that something was not right and began asking me questions. Fortunately, she did not attempt to send a check to cover the bill which is what the cyber criminals were looking for her to do.
Why, you ask? I'm glad that you did. If she had sent that check, the scammers would have had her bank's routing and account number. Think about that. With that information, they can initiate an EFT (electronic funds transfer) and drain the entire account. Fortunately, my wife didn't fall for this very low tech form of invoice manipulation.
This example highlights how cyber threats are using low tech methods to target businesses. They're not just looking for a quick $500; they're after your account details to cause much more damage. This kind of scam underscores the importance of having a robust cybersecurity insurance policy in place for your small to medium sized business. Believe it or not, your cyber insurance policies can cover you in such scenarios because it's considered a data security breach, even if the breach comes via paper to begin with.
Many commercial insurance companies will offer a low level of cyber insurance coverage on their business owner's policy. While this cyber policy doesn't offer robust levels of protection for your business, it is absolutely better than not carrying a cyber liability policy at all. It's important to consider a stand alone cyber liability insurance policy to make sure that you have adequate policy limits and comprehensive protection no matter what a bad actor throws your way. It can cover low tech paper threats as well as more sophisticated cyber attacks that you're likely dreaming up in your mind.
If you're not concerned about the increase in cyberattacks on your business, it's time to take a closer look. Ignoring these threats increases your level of risk that could torpedo your future. Without a cyber insurance policy, it's only a matter of time before your business gets hit. The consequences of these cyber incidents, whether old school or new school can be devastating on your business.
At Insurance for Texans, we offer a range of options to protect businesses of all sizes, from small enterprises to large corporations with specific needs. We can even help you find coverage for those government contracts that require incredibly high levels of coverage. Click the button below to begin the process of getting cyber coverage that will protect you. Even from paper.
Let us help you secure your business's future with top-notch cybersecurity insurance.
Stay vigilant, Texas!