Over the 2020–21 financial year, over 67,500 cybercrime incidents were reported to the Australia Centre for Cyber Security (ACSC). This is an increase of nearly 13 per cent from the previous financial year, and equates to one cyber attack every 8 minutes compared to one every 10 minutes last financial year.
Cyber-attacks are an extremely lucrative form of criminal activity, which is fueling a dramatic increase in the number of attacks on Australian businesses of all sizes.
Cyber-attacks on a business can involve costs that arise due to:
Cyber-attacks can paralyse business systems, and cause mass loss of business records often rendering companies unable to operate. This can cause significant loss of income to your business.
Ransomware attacks often see business systems shutdown, with access only granted once the ransom payment is made. This can occur multiple times in one cyber incident, maximising the return for the perpetrator.
IT specialists may be required to restore data, this can be extremely costly, particularly if hardware is irreparable and requires replacement.
Specialist forensic investigators are often engaged to ascertain what happened, if data has been stolen and to identify perpetrators. This is a costly but necessary expense.
Compensation may be payable for any customers who suffer financially if their personal data is stolen in an attack.
If a third party launches legal action for damages incurred in an attack, you may need to engage legal services to defend yourself. This can amount to tens of thousands of dollars.
Privacy laws can see businesses fined up to $1.8m and individuals $360,000 if they fail to report a data breach to the Office of the Australian Information Commissioner.
If a cyber incident becomes public knowledge, it can be highly damaging for your brand. PR professionals are often required to manage the fallout and help you support customers who feel their personal data is not secure.
Cyber Insurance is designed to help protect your business from the financial impact of a computer hacking or a data breach. This risk exposure is not covered by a traditional business insurance policy.
Any business with a website or electronic records, or an IT system that connects to the internet is vulnerable. IT security systems are simply not enough in the digital era.
Like any vaccination, current antivirus software protects you from what is known, not what is not. That means SMEs need stronger protective measures to defend against everchanging and ever-present cyberattacks (Emergence).
First party losses
Third party losses
Additional expenses
Cyber Insurance can assist in coordinating a cyber-attack response and recovery, engaging specialists to help your business return to normal as soon as possible.
