Cybercrime – The Growing Threat and Need For Cybercrime Insurance

Cybercrime is a growing threat in today’s increasingly digital world, with hackers and other malicious actors seeking to exploit vulnerabilities in computer systems and steal sensitive information. As a result, more and more businesses and individuals are seeking protection against cybercrime through the purchase of cybercrime insurance.

Recently in the news was the exposure of the Russian Trickbot ransomware group. They were a notorious group of cyber criminals known for launching ransomware attacks on businesses and organizations. The US and UK governments joined forces to expose and punish seven key members of the group, including the leader, top hackers, financial masterminds, and lower-level members. The punishment for the members was swift and severe, with many sentenced to long prison terms and others fined and having their assets seized. The group was disbanded, and its members were brought to justice for their crimes, but not before they ruined thousands of businesses and stole millions of dollars from their innocent victims.

Here are some statistics on cybercrime in the United States:

  • In 2020, the average cost of a data breach was $8.64 million.
  • Nearly 60% of small businesses that suffer a cyber-attack go out of business within six months.
  • Ransomware attacks increased by 354% in 2020 compared to the previous year.
  • In 2020, 33% of all data breaches involved theft or loss of a device, such as a laptop or a smartphone.

Cybercrime insurance provides coverage against a wide range of threats, including data breaches, hacking attacks, and other types of cybercrime. This coverage can help businesses, and individuals recover from the financial losses and other consequences of a cyber-attack, including the costs of repairing systems, restoring data, and notifying affected individuals.

A small software company called CRT Innovations was hit hard by a cyber-attack. Hackers were able to steal sensitive information, such as employee and customer data, as well as intellectual property and confidential business information. The company was devastated, as the cost of the attack was astronomical. The company had to spend a large amount of money to notify customers, provide credit monitoring services, and hire public relations experts to mitigate the damage to its reputation. The cost of restoring the systems and data was also extremely high.

CRT Innovations was fortunate to have purchased cybercrime insurance before the attack occurred. The insurance policy provided coverage for all of the expenses incurred as a result of the cyber-attack, including notification costs, credit monitoring, public relations efforts, and restoration expenses.

Without cybercrime insurance, CRT Innovations would have had to bear the full cost of the attack, which could have potentially put the company out of business. Instead, the company was able to recover and continue operations, thanks to the protection provided by its insurance policy.

This story highlights the importance of cybercrime insurance for businesses. No one can predict when a cyber-attack will occur, and the cost of such an attack can be devastating. By purchasing cybercrime insurance, businesses can protect themselves against financial losses and ensure that they have the resources they need to recover from a cyber-attack.

In conclusion, given the growing threat of cybercrime and the potentially devastating financial consequences of a cyber-attack, it is important for businesses and individuals to consider obtaining proper cybercrime insurance coverage. By doing so, they can better protect themselves against the risks associated with cybercrime and ensure that they have the resources they need to recover from an attack.

Wigmore Insurance has the cybercrime coverage you need. Our agents understand what it takes to protect your business and will walk you through the entire process. Call us today at (714) 979-6543 for a free cybercrime insurance discussion and evaluation of your risk.

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