We are constantly hearing of incidences of cyber attacks both at a national and business level. As a consequence businesses in particular face new challenges in combatting the effects of what often are devastating cyber attacks as well as data breaches. What makes businesses all the more vulnerable to these events is that they may not have the resources or infrastructure to deal with and recover from such events.
Cyber Liability Insurance covers the cost of recovery following a data breach, virus or other cyberattacks. Importantly cyber insurance covers both first-party liability (damages to your business and information) and third-party liability (damages to your customer’s information or data).
Data breach response – covers the cost of expert investigator costs, expenses for notifying affected parties, credit and identity theft monitoring, including public relations costs and legal defence costs relating to regulatory obligations.
The cover can be extended to include business interruption due to a cyber incident which is not considered an insured risk under your general insurance policies.
Cyber attacks in South Africa
Here are a few examples of recent cyber attacks in SA:
Professional Provident Society (PPS) – fell victim to a malicious cyber-attack by unknown hackers which resulted in their members not being able to access their information.
Department of Justice – their systems were breached which led to all their information being encrypted and unavailable
Transnet – reports emerged that Transnet was experiencing problems with its IT networks which disrupted the operations in the container handling facilities resulting in interrupted cargo movement
Life Healthcare – affected admissions systems and email servers resulting in them having to take their systems offline in order to contain the attack whilst at the same time having to fight the Covid-19 pandemic
City of Johannesburg – suffered a breach of its network causing a shut down of its website and all e-services, after receiving a bitcoin ransom note from a group call the Shadow Kill Hackers
What are Cyber Risks:
- Natural Disasters – cybercriminals, who are becoming increasingly sophisticated, could take advantage of natural disasters such as fire, floods hurricanes and wildfires which wreak havoc on critical infrastructure, emergency response, water and hospitals.
-
- System Failures – “unintentional or unplanned outage” to your network caused by a cyber intrusion resulting in lost income.
- Cybercrime – An unlawful action against any person using a computer
- Phishing – fraudulent practice of sending emails purporting to be from a reputable company to intice individuals to reveal personal information, such as passwords and credit card numbers
- Pharming – when a hacker “pharmer” directs an internet user to a fake website instead of a legitimate one. These sites can capture an individual’s confidential information
- Malware – is software that is specifically designed to disrupt, damage, or gain unauthorised access to a computer system
- Ddos – is distributed denial of service which the attach involves multiple connected online devices which are used to overwhelm a targeted website with fake traffic
- Cyber Warfare – technology used to disrupt the activities of state-owned enterprises
- Corporate & State Espionage – provides the attacker with information that gives them a competitive advantage against companies or governments
- Cyber Terrorism – the attack and treats of attack against computers, networks and information stored for spreading hidden political or unlawful social and religious agendas
- Cyber Activism – using email, blogs and social networking sites to publicise a cause by disseminating information quickly.
Clearly the phenomena of cyber attacks and data breaches and the enormous risks to business of these events is something which can no longer be ignored. Please contact our Debbie Smart on (cell: 082 551 8146 / tel: 011 656 2910) for more information.