Why the Risk Is Increasing
The risk of falling victim to a cyber crime is a serious and growing threat for businesses worldwide. Any company, regardless of size, that uses the internet or smartphones in its business operations is vulnerable.
There are several factors that have led to an increase in cyber crime:
-Constant changes to technology-based systems, which create new vulnerabilities that can be exploited by cyber
criminals
-Global interconnectivity of businesses through the internet
-Increased reliance by businesses on third-party vendors and systems to handle computer-based operations, such
as cloud computing services that use remote servers on the internet, rather than local servers, for data storage and
processing.
To illustrate the factors that have led to an increase in cyber crime, let’s consider the misfortunes of the fictitious ABC
Widget Manufacturing Company.
-ABC relies on an overseas vendor to supply a critical component for its widgets. This vendor recently installed a
software update to its accounting system. Unfortunately, the code used to develop this update contained a flaw that
was exploited by hackers, who stole ABC’s sensitive financial information.
-An employee of another one of ABC’s vendors emails ABC’s customer service department. The email contains an
attachment that is infected with a virus. When an ABC employee attempts to open the attachment, the virus is
downloaded to ABC’s network server.
-ABC uses a cloud computing service to store its customer records. A data breach (the exposure of private
information to unauthorized third parties) occurs at the cloud facility that results in ABC’s customer data being
stolen.
To learn more about protecting your small business from cyber crimes through insurance contact us today: 877-277-9036
Source: Kaplan Learning