LinkedIn, Sony, the Clinton Foundation and tons of other companies have all been in the headlines for the past few years because they have been hacked – and users’ details disseminated. The usual response to this sort of attack is for companies to increase security, put in more firewalls, and hire white hats to test their perimeters.
Yet, says Sarel Lamprecht, MD of Phishield, specialists in cyber fraud insurance, this sort of response is no longer enough. “In just the same way you secure your home with burglar bars and electric fencing, but still get insurance, so you need to insure against the chances of a breach.”
Cyber insurance is a fairly new concept in SA, but as Lamprecht points out, some reports have estimated the cost of breaches to companies in SA as high as R5.8 billion just in 2014 – and individuals are being targeted even more frequently than companies.
Graham Oates, CEO of Norrie Johnston Recruitment, points out that just one study by the Center for Strategic and International Studies, a Washington DC policy research group, and McAfee, the technology security firm, puts the annual cost of cybercrime to the world economy at more than $400 billion. This, he notes, is even before the wider impact on the victims’ personal lives is taken into account.
“Gartner estimates that there are over 500 000 cyber attacks globally every day and that cyber spending will hit $86 billion this year. As a result, businesses and individuals are fast waking up to the need to protect their cyber presence. Criminals are getting more sophisticated every day, and it’s getting harder to stay a step ahead of them,” Lamprecht notes.
He adds the risk grows as more and more devices become connected to the internet – the so-called Internet of Things world.
Cyber insurance is gaining ground in SA among the larger companies, but individuals are just as – if not more – vulnerable, he says. They can’t afford a team of IT specialists, but tend to have just as much sensitive information in their devices as large companies. “Unless you want to run your life offline, you’re at risk.”
Lamprecht explains that the benefits of cyber insurance include covering you if you are hacked and someone used their card to make online purchases, and then got taken for thousands. It also includes card fraud, in app purchase fraud, phishing and ETF breaches.
“These are the areas in which individuals are most vulnerable, because they don’t have an IT team protecting them. This is why we focus on protecting the most used transactions. Having cyber insurance means you’re protected when something goes wrong. It’s no longer a grudge purchase,” he concludes.
Phishield is the world’s first cyber and phishing insurance. Phishield provides cover against fraudulent online purchases, card fraud, phishing scams, as well as fraudulent EFT funds transfers and in-app purchases.
Phishield was established by a group of entrepreneurs from various backgrounds, industries and disciplines, forming global partnerships with security and insurance companies to provide consumers with an affordable cover against loss of funds suffered through cyber and transactional theft.
- Why learning and development matters – An empowered employee shares his thoughts | #Insights | Tebogo Sethabela | 21st Century | #ebizradio - October 28, 2021
- Diversity and inclusion in the workplace promotes creativity and productivity | #LunchtimeSeries | #Marketing | #Insights | Kevin Britz | Craig Page-Lee | #Podcast | #ebizradio - October 28, 2021
- Valuable and Purposefully Giving this Social Development Month | Pay It Forward | The Love Trust | #ebizradio - October 27, 2021
- Is the option to work from home inclusive and diverse? | #Insight | #Business | #HR | Devan Moonsamy | ICHAF | #ebizradio - October 27, 2021
- Sharing more about RETT SYNDROME and how you can help! | #BusinessBrunch | Bjorn Salsone | #PayItForward | Rett-SA | #ebizradio - October 26, 2021
- Equality, diversity and inclusion – starts with YOU | #Insights | #Diversity | Pabi Mogosetsi | Universum Global | #ebizradio - October 26, 2021
- Cyber Security Awareness Month Is a Good Time to Review Your Payroll Provider | #Insights | Sandra Crous | PaySpace | #ebizradio - October 26, 2021
- Motoring News of the Week | Diesel and Dust | Tumelo Maketekete | #Motoring | #ebizradio | #Podcast - October 25, 2021
- Robotics in Retail – What does this mean for you and your business? | #Marketing | Kevin Britz | Craig Page-Lee | #Podcast | #ebizradio - October 22, 2021
- The Youth Unemployment Crisis – What is the impact on individuals and the economy | #Insights | Bryden Morton | Chris Blair | 21st Century | #ebizradio - October 20, 2021