Australian small businesses targeted by cyber criminals
If you own a small to medium sized enterprise (SME) you may feel that your exposure to cyber risk is low, but a recent report released by the Australian Signals Directorate (ASD) clearly shows cyber criminals are increasingly targeting Australian SMEs, and the frequency and financial impact of attacks are rising1.
Cyber criminals see smaller organisations as low-hanging fruit because they often lack the resources necessary to invest in IT security or provide cyber security training.
Ultimately cyber criminals choose to target the most vulnerable companies, not just the most valuable.
The ASD reports that cyber-attacks on Australian businesses were reported every six minutes during 2022-231.
The average cost of a cyber-attack on a small business is $46,000, rising to $97,000 for a medium-sized business, an increase of 14% on the previous year1.
However, many attacks go unreported and quite often those figures are much higher.
Criminals launch cyber-attacks to manipulate, disrupt, or destroy digital networks, or the information stored on them, in the form of ransomware, theft of funds, identity theft, account or system lock-out, and phishing attempts.
The impacts can be devastating and include not just financial loss, but also operational disruption and damage to reputation.
Fortunately, Cyber Insurance can help to cover financial losses from a cyber-attack and help businesses identify, mitigate and manage cyber risks.
Insurers now offer competitive prices for cyber policies with a host of additional benefits including cyber risk assessments, online cyber threat monitoring and hotlines that offer advice 24/7.
Cyber policyholders also benefit from access to cyber incident response management teams when an attack occurs.
Specialists in areas such as IT forensics, crisis communications and legal & regulatory affairs are mobilised to help you understand the impact an attack will have on your business, what you need to do, who you need to notify and how you can prevent further damage.
Other Cyber Insurance coverage features include:
• incident response costs
• extortion costs
• business interruption
• data asset restoration
• 3rd party liability.
In summary, never underestimate the vulnerability of your business to a cyber-attack and the crippling impact an attack could have on your operation.
Cyber Insurance can help. Don’t wait until it’s too late, talk to a Gallagher broker today.
1 Australian Signals Directorate Cyber Threat Report 2022-23
[CONTRIBUTOR PROFILE]
This article has been prepared by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920).
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The team at the Warragul branch welcomes the opportunity to discuss a cyber policywith you in more detail and provide you with a no obligation quote on 03 5624 1000 or at warragul@ajg.com.au.
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