Incidents of cybercrime are on the increase. We’d like to forewarn you about the most likely types of cyber-attack which could impact your vaping business during 2020.
At the start of this year, travel money business Travelex was reported to have suffered a significant cyber-attack. While they were back online by the end of January, their business was significantly disrupted by the hackers.
It’s important that all business owners take the threat posed by cybercrime seriously – attacks take place every day and all types of businesses are targeted. The FSB reports that small businesses face almost 10,000 cyber-attacks daily. The costs associated with an attack are significant too at around £1,300 on average.
Cybercrime doesn’t just affect large corporations. While these may be the attacks that make the news, SME’s are just as at risk of a cyber-attack.
Potential types of cyber-attacks which could impact your vaping business in 2020:
Ransomware attacks are common. They involve malicious software, called malware, which usually blocks a business’s access to their systems or encrypts their data. Cyber criminals then hold the business to ransom, demanding payment in return for access to systems and data again.
The Wannacry attack which affected the NHS back in 2017. is an example of a ransomware attack.
It is believed that ransomware attacks may be more likely to be targeted at businesses than individuals because of the potential for significant sums of money to be paid out.
Phishing attacks have been around for a while. They typically involve an email being sent to get unsuspecting employees or users to disclose access information or give away sensitive business information.
They are becoming ever more sophisticated to overcome the security software that businesses put in place. This means they are more difficult to spot and for employees to realise they are not genuine requests.
To find out more, you can read this article which looks at 10 types of phishing attacks and scams.
Internet of Things (IoT)
The number of smart devices in businesses which are internet connected (IoT) is increasing, meaning it’s likely there will be an increase in these types of attacks. Many devices don’t have security installed as standard and this creates a natural vulnerability for cyber criminals to attack. In fact, figures suggest that cyber-attacks on IoT devices increased 300% in 2019.
It’s important that you know which devices are connected to your network and also that you keep any firmware up to date in order to reduce your risk of one of these types of attack.
How important will Cyber Insurance be in 2020?
With the increased risk of cybercrime comes a need to protect your vaping business sufficiently. It’s important that you have the correct technical solutions in place to protect against attacks – firewalls, anti-virus software and keeping any systems updated. You should also train employees on how to spot potential attacks and encourage them to speak up if they think something is suspicious.
Even with the increased risk, uptake of cyber insurance is thought to be too low by the Association of British Insurance (ABI). A recent report suggests that just 11% of businesses have cyber insurance in place.
Cyber liability insurance can provide valuable protection against cyber-attacks in a number of different ways:
- Cyber business interruption – loss of income would be covered if you were to suffer interruption to the running of your vaping business because of a cyber attack
- Ransomware – if a hacker held your systems to ransom, cyber insurance would cover the ransom costs and provide support in managing the situation
- Hacker damage – insurance to help you fix any damage caused by hackers during a cyber-attack
- Crisis containment
With the introduction of GDPR there is more onus on businesses to demonstrate control and protection over data that they own. Not having adequate procedures in place to protect against cybercrime could see businesses facing significant fines as well as suffering reputational loss, loss of customers and loss of revenues.
Anthony Jones believe that cyber insurance will only become more important in 2020. As a broker we are working hard with all our customers to help them understand the role cyber insurance could play in their business.
At Anthony Jones we know that cybercrime isn’t confined to big business. Single unit vape shops need to be aware of the risks as the figures show that they are just as much of a target as larger vaping businesses. We can work with you to understand potential risks you may face as well as working to put in place cyber insurance cover to protect against these risks. Chat to us today for more information on 0208 290 9080 or email us at email@example.com.