Cyber-attacks, the protection of one’s information on the world wide web and information storage are becoming real issues for both businesses and individuals in today’s world. Information is readily available through multiple sources, and the tracking software on our internet browsers, social mediums and on our mobile devices consolidates all of our information together. Artificial Intelligence and data online are being used by corporations to predict the clothing we will buy online, the websites we will visit, and those individuals who we may know on Facebook for example, understanding and documenting our likes, dislikes and those qualitative characteristics about us. As incredible as this may be, it can be dangerous, as all our information exists in some form online, even if you are ‘careful’. Furthermore, these social media platforms and the world wide web are vehicles and gateways for cyber-attacks. This is thus posing as an increasing target for cyber-attacks, and for hackers to steal our personal and business information. It is therefore becoming incredibly important to store and protect your information securely, whether on hard drives, servers or in the cloud. The need for cyber insurance is thus on the rise, and one might say that if your online information is unprotected and is not insured, you are being irresponsible.
According to Techopedia, a cyberattack can be defined as a “deliberate exploitation of computer systems, technology-dependent enterprises and networks” (Techopedia, 2019), and is achieved through hackers using malicious code to alter your device compromising your information. It is incredibly difficult to detect if a hacker is tampering with your computer, and if you do not know how to intervene, it may be impossible to stop the hacker. Examples of cyber crime include fraud, trafficking of intellectual property, identity theft, or holding wealthy individuals to ransom to return their information. These are real crimes with monstrous implications if one is not properly protected.
So how can one be protected against this type of 21st century crime? Through insurance, access authentication and the secure storage and consistent back-up of your computers’ information.
“Cyber insurance is a sub-category of general insurance that covers businesses and individuals against Internet-based liability and risks” (Goldphish, 2018), an insurance sub-category that is securing itself as a necessity insurance, like car, medical and home insurance. It is important to note that ‘cyber insurance cannot protect you from cybercrime’, but it will protect you and your business financially. This type of insurance has been around for more than a decade, but PwC have estimated the global cyber insurance market to hit more than $29 billion in the next 6 years (Goldphish, 2019), existing as both first-party and third-party coverage.
Personal information is readily available online, and cybercrime is increasing, however, governments and law enforcement seem to be coming to the party to assist in the protection of information and data through revised laws, including POPI and GDPR in Europe. These new laws coupled with new data protection software, consistent back-ups and information storage in secure clouds, and cyber insurance options, provides one with multiple options to protect their information and data.
Article by: Alexa Seligmann, New Product Development Manager at One Loyalty Rewards
Goldphish, 16 November 2018. Cyber Insurance and why you need it. https://www.itweb.co.za/content/4r1lyMRoVZ2qpmda
Michael Aaron Dennis, 20 Feb 2019. Cybercrime, Law. https://www.britannica.com/topic/cybercrime