Computer Security Day 2018: the stories of two scams30th November 2018
Cyber security has become a key risk to businesses of all sizes, with cyber attacks having become regular headline news, particularly in recent years.
Virtually all businesses now collect and store personal information about customers, employees and others. The frequency of data breaches is on the rise, and not just for big businesses. Small and medium-sized businesses with fewer data security resources are particularly vulnerable and, though they may not make the headlines, the potential financial cost and reputational impact of a cyber incident can be crippling for an SME.
Today marks Computer Security Day 2018. Computer Security Day started to raise awareness about computer security back in 1988 when computers were just beginning to become commonplace. This has never been more important than now, so to do our bit to raise awareness of the potential damage cyber attacks can cause, we’re sharing two case studies of claims worked on through our Computer Insurance product that have saved businesses thousands;
Fraudsters phishing scam could have cost business thousands
In this instance, an insured was contacted by a person purporting to be from their bank, warning of a security issue on the bank’s software and potential fraudulent activity on their business accounts. Appearing to be from the bank’s support number, the caller provided further reassurance by offering personal information about the insured.
Convinced the call was genuine, the insured was duped into accessing the business bank accounts and allowing the caller to see the log in details and security information via connection to the PC. The fraudsters then continued dialogue with the insured whilst unauthorised transactions were made.
A separate (genuine) call was received from the insured’s bank alerting another colleague about fraudulent activity on their accounts and told them to terminate all calls and activities urgently.
Although the bank managed to stop a few of the fraudulent transactions, a number had already been completed; resulting in a significant amount of money being withdrawn from the insured’s accounts.
The PC used to log into the bank accounts was immediately disconnected and subsequently reformatted by a specialist I.T. company.
Once notified, the insurer immediately arranged an urgent conference call with IT forensics and loss adjusters. IT forensics examined the hard drive but were unable to trace the fraudsters. However, as part of our cyber claims support, we were able to provide recommendations on how they could protect themselves from future cyber-crime attacks.
Claim cost £49,900. Specialists fee £1,575.60 (met by insurer). Total cost of claim £51,475.60.
Malware virus spreads through warehouse company’s computers
An employee of a warehouse and logistics company inadvertently clicked on a business-related email which contained malware. The malware quickly began to encrypt the employee’s computer and then spread to the network, affecting a number of servers. Files were rendered inaccessible and back-ups also contained encrypted data.
An initial ransom of £4,500 was demanded, with an additional £5,000 per day until payment was received. Deciding not to pay the ransom, the insured quickly replaced the affected servers; enabling them to mitigate business interruption and loss of customers. However, in replacing the servers, some of the data remained encrypted. The insured contacted the insurer to report the loss.
An expert data recovery company was deployed to recover the encrypted data (nearly 400,000 files in total). They also provided recommendations to the insured on future server protection safety measures.
Claim cost £11,785.00 which comprised of £8,035.00 data recovery, £2,815.00 ransomware and £750.00 for server migration. Loss adjuster fees of £3,603.60 were also met.
Protect your business from a data breach in 10 steps
Are you confident that you would be able to identify a fraudulent phone call or business-related email? How would your business cope should somebody fall victim to one of these attacks?
For more information on protection measures, view our 10 steps to help prevent a data breach.
To discuss Cyber Insurance with one of our experts, get in touch with your NMU Development Underwriter.