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Cybersecurity risks are not only growing in frequency, but they are also growing in complexity and severity, and complexity, placing cybersecurity risks at the top of the list of the biggest threats impacting businesses and organizations. Ransomware attacks and data breaches are happening at a heightened pace because cybercriminals are evolving their tactics while targeting vulnerable victims in an effort to stay steps ahead of today’s best risk-mitigation strategies.
The growing use of cyber insurance by businesses and organizations to protect themselves against cybercrime is in no way an outright solution to the problem. Businesses and organizations that rely solely on cyber insurance to rescue them in the event of a cyberattack could face substantial operational and financial risks.
In 2021, we have seen a series of significant cyber incidents, data breaches, and ransomware attacks. 2021 surveys and reports show the risk of cyber breaches is higher than ever, which comes as no surprise due to the rise of hybrid and remote working and its impact on IT security. As a result, there has been a corresponding increase in businesses and organizations taking out cybersecurity insurance policies.
Ransomware attacks account for a significant portion of cyber insurance claims filed in the United States. However, even if a victim’s cyber insurance policy covers ransomware(this is not a given), there is no guarantee that a cyber insurer will underwrite the full cost of a cyber incident. As a result, cyber insurance policies should not be relied upon to do so.
In the past, cyber insurance was considered an optional investment for businesses and organizations that did not have a significant amount of confidential and sensitive data. The rapid rise in cybercrime impacting all industries and businesses and organizations of all sizes have since proven that being prepared to protect operations against cyber threats is no longer optional.
It is crucial that businesses and organizations across all industries have a clear understanding of the risks presented by cyberattacks and ensure the proper investments are being made to manage each risk. Cyber insurance definitely has its place in this ever-growing battle against cybercrime, but cyber insurance should not be viewed as a substitute for effective preventative and detective controls.
There are several things you can do to make your business or organization as safe as possible. However, there will always be a risk that a new vulnerability will be discovered and quickly exploited by bad actors before the manufacturer identifies it and releases a patch that successfully addresses that vulnerability. This is a form of a zero-day vulnerability.
Another form of a zero-day vulnerability is the period between the detection of a new malware strain, the malware strain being characterized, and updates being created for anti-malware applications. During this period of time, the malware can continue to spread without being checked.
Another vulnerability that businesses and organization leaders should be aware of is employees. Employees need to receive cybersecurity awareness education and training. The most common cyber threats arrive by email, and employees are the recipients of those emails. The majority of data breaches occur through human error, and mistakes can still be made after cybersecurity awareness and training.
Cybersecurity continues to be a process of improvement. Despite how hard businesses and organizations try, there will always be risks. After obtaining cyber insurance, you cannot simply check a box that indicates you have addressed your cybersecurity needs. Obtaining cyber insurance does not mean you will have nothing to worry about. There will always be zero risks even when you have cyber insurance.
If your business or organization is attacked, covering the early costs could be a major issue. There could be a significant gap between your insurance claim and the receipt of funds from the insurer, which could ultimately disrupt your cash flow. Also, filing an insurance claim may not be as simple as one may think. Every cyber claim is not approved, and your cyber claim can be denied if the insurer determines that your business or organization did not do enough to prevent a cyber incident. Cyber insurance comes with a variety of requirements that need to be fully understood and implemented. Failing to maintain standards can have a damaging impact on a claim.
Not only should you not rely on cyber insurance alone to offer your business or organization the protection it needs against cybercrime, but you also should not rely on the government to rescue you in the event of a cyber incident. The Washington Post reported that the Federal Bureau of Investigation (FBI) admitted that it hid a decryption key for nearly three weeks that would have unlocked systems of several MSPs and thousands of businesses that were impacted by the REvil ransomware attack on Kaseya.
Ransomware attacks continue to be a major concern for businesses and organizations across the globe, generally causing significant disruptions including the loss of income, the loss of valuable resources, and reputational damage. In the case of the Kaseya ransomware attack and the Colonial Pipeline ransomware attack, the impact was felt by thousands of businesses and organizations.
Paying the requested ransom does not guarantee immediate success, as evident by the events that occurred after the Kaseya ransomware attack. Paying the ransom demand also does not prevent the bad actors from attacking the business or organization again. When bad actors find success after attacking a business or organization, there is always a chance more attacks will be made on that same organization. Getting ahead of the threat by implementing a prevention-first strategy for early detection will allow businesses and organizations to stop cybercrime before business operations and reputations are damaged.
Businesses and organizations must be vigilant about cyber threats. Effective cyber security measures are the best way to address cyber threats. Colorado Computer Support ensures your systems are up to date with the most up-to-date security patches and we will ensure you have the most effective physical security measures in place. We will minimize the risk that your business or organization’s sensitive and confidential information is accessed, used, modified, or deleted.
While cyber insurance can be a vital tool to helping your business or organization recover from a cyber incident, it should not take the place of strong and effective cybersecurity measures. Make sure you have a solid and robust backup and recovery system in place. If you have any questions or would like additional information about how you can better protect your business or organization, contact us today to schedule a consultation.