While most people associate cyber-crimes with data breaches at big corporations like the recent Qantas hacking, the reality is that AI scams in business are on the rise. The top three industries currently being targeted are Professional, Scientific and Technical Services (17%), Retail Trade (10%), and Media & IT (9%).
Among these threats, ransomware stands out as the biggest single risk for businesses of all sizes. It requires minimal technical expertise, is relatively low cost for cyber criminals to deploy, and can cause significant operational and financial disruption for management.
Why are scams getting harder to spot?
Thanks to artificial intelligence, scammers can now mimic voices, replicate logos, and create incredibly convincing emails or text messages. It’s not uncommon to hear of someone transferring money to what they thought was a legitimate request – only to find out it was a scam.
Some of the most common threats right now include:
– Fake invoices or payment redirects targeting small business owners;
– Personal identity theft via hacked email or social accounts;
– Ransomware attacks locking people out of their own devices or IT systems; and
– Deepfake video or voice scams impersonating staff, family or executives.
Impacts to your business & Customers
Impacts include the time and effort in notifying customers and authorities of the crime, and costs related to potentially being locked out of IT systems and dealing with ransom requests. In addition, money and assets are frequently being stolen by cyber criminals, who gain access to IT systems and confidential information.
Cyber insurance and Risk Management
Cyber insurance is a key to managing and reducing the impact of a cyber incident or attack. There are lots of free cyber risk management resources available to assist in minimising the likelihood of a successful attack, including from the Australian Cyber Security Centre.
Cyber insurance is widely available and there are a lot of package options to meet all types of business needs and budgets. We recommend the following covers be considered:
- Incident response, including specialists to identify, stop the attack and restore systems;
- Cover for loss of business income, as well as extra costs due to the attack;
- Crisis management and Consumer notification costs and ongoing credit monitoring costs;
- Cyber extortion management and fees;
- Legal defence costs and damages arising from loss of personal or confidential information;
To learn more about how cyber insurance can be part of your Cyber Risk Management and reduce the impact of a cyber attack on your business and customers, speak to your professional insurance adviser today.
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Call: 02 9133 9900
Email: info@lainsurance.com.au