Cyber Extortion

Cyber Extortion Cyber extortion is an internet crime in which someone holds electronic files or your business data hostage until you pay a demanded ransom. Cyber extortion is an online crime in which hackers hold your data, website, computer systems, or other sensitive information hostage until you meet their demands for payment. It often takes the form of ransomware and distributed denial-of-service (DDoS) attacks, both of which could paralyze your business. How does cyber extortion work? Cyber extortionists have several common techniques for breaking into your computer hardware, software, and networks and incapacitating them until you pay a fee. One tactic is ransomware, which involves a hacker tricking one of your employees into clicking on a link or file within an email message. This activates the ransomware, which spreads throughout your network, encrypting your servers and data so you can’t access applications and files. The only way to restore access is to pay the hacker for an encryption key. So-called distributed denial-of-service (DDoS) attacks involve hackers using a network of infected computers to send an overwhelming flood of messages to your web server, which effectively takes it out of service until the messaging stop. Many cyber liability insurance policies cover cyber extortion, but usually by endorsement only (i.e., an addition to your policy’s declarations page). Such policies, called first-party cyber liability coverage, provide financial support for three purposes: -To meet a hacker’s ransom demand -To pay for extortion-related expenses, such as hiring a consultant to remediate an attack -To bring damaged computer hardware or databases back to their original working condition How can a small business avoid falling prey to cyber extortion? -Maintain an effective firewall and install antivirus software -Train staff on email hygiene (i.e., don’t click links in the body of unknown emails or open attached documents or applications) -Avoid clicking on pop-up ads while working on the internet -Maintain multiple backups of all your data. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful #climatechange