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Are You the Next Target for Cyber Criminals?

An increasing number of businesses are falling victim to cyber-attacks, hacks, or data breaches where sensitive information is lost or stolen. While certain business sectors such as transportation or logistics typically don’t store large quantities of data, others do. Exposure to cyber-crime poses a significant threat, with cyber-attacks on businesses – both large and small – becoming increasingly common.

How are you at risk?

Cyber criminals view the digital world as an opportunity to exploit companies and individuals. For instance, if you own a Motor Fleet or Haulage & Logistics business, your drivers are among your most important assets. However, their data is one of your biggest vulnerabilities because haulage and transport firms collect personal information. This can include driving licences, bank account details, National Insurance numbers, and employee medical records. In 2019, the introduction of smart tachographs enabled businesses to access and store even more valuable and sensitive data than before, including an increased level of personal information.1

How do cyber criminals target businesses?

A common cyber-attack is intercepting payments to suppliers and third parties. The cyber criminals impersonate third parties and even your own employees using authentic looking emails with the correct branding and content to access information or redirect payments. This is known as ‘email spoofing.’ Should your business fall victim of a cyber-crime like this, Cyber Insurance can enable you recoup funds lost to criminals.

As with many cyber-related incidents, human error often leads to data and financial loss. Given that cyber criminals use increasingly sophisticated methods to obtain funds, it is challenging to eliminate this risk entirely. Appropriate Cyber Insurance can assist in recovering funds under the cyber-crime section of the policy.

Legal obligations

If your company holds personal data, you have a legal obligation to keep it secure and prevent it from falling into the hands of cyber criminals. It’s important to ensure that all employees are aware of their responsibilities and understand what constitutes a data breach.

GDPR regulations

GDPR regulations require that certain personal data breaches are reported to the Information Commissioners Office (ICO) within 72 hours of becoming aware of the breach.2  You must also promptly inform anyone affected by the data breach unless doing so would compromise their rights and freedoms. Failure to comply with GDPR regulations can result in fines of up to £17.5 million or 4% of your annual worldwide turnover.2 Additionally, the ICO can issue penalty notices, assessment notices, warnings, and reprimands. Awareness of and compliance with GDPR regulations, including having a plan which incorporates appropriate Cyber Insurance, is crucial.

Why is Cyber Insurance important?

Your IT systems undoubtedly hold sensitive data, including customer details, financial records, tachograph history, and employee records. If this data is compromised, the consequences could significantly impact your business’s reputation and finances.

Standard insurance policies typically do not cover cyber incidents or cyber-attacks. If your business falls victim to cyber-crime, you, as the owner, could be responsible for covering the full costs of the fallout. These costs can include rebuilding your IT systems and data, paying fines, or even negotiating with cyber criminals to regain control of your data, IT systems, and business operations.

Protecting this data is of paramount importance. In the event of a public inquiry, you may be required to provide evidence and utilise the information you hold. The ICO website offers more information on the responsibilities of business owners regarding data protection.

How does Cyber Insurance protect you?

Cyber Insurance through Direct Corporate Risks protects you during and after a cyber incident. Coverage can include:

  • Costs associated with data or system damage.
  • Compensation for security breach-related losses, such as funds paid to fraudulent sources.
  • Legal and regulatory defence costs.
  • Access to specialist computer forensic support.

Our Cyber Insurance team assist with data breaches on a regular basis. Their experience in responding quickly and effectively help you make appropriate decisions and take fast action.

Our Cyber Insurance Claims team supports you throughout the response process, providing access to relevant legal and technical experts as needed. We manage expenses related to repairing data breaches, associated costs, and the process of notifying affected parties.

To talk to our Cyber Insurance team, contact us today.

Tel: 01277 844 360

Email: info@dicr.co.uk

  1. https://www.transportsfriend.org/tachograph-analysis/tachograph-history-background-use/#:~:text=The%20European%20Commission%20has%20revised,smart%20tachograph%20in%20June%202019.
  2. https://ico.org.uk/for-organisations/report-a-breach/personal-data-breach/personal-data-breaches-a-guide/
  3. https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/data-sharing-a-code-of-practice/enforcement-of-this-code/#:~:text=Tools%20at%20our%20disposal%20include,worldwide%20turnover%2C%20whichever%20is%20higher.

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