How to safeguard your business operations against cybercrime

How to safeguard your business operations against cybercrime

South Africa is a growing cybercrime hotspot on the African continent, with attacks on businesses becoming more common as well as increasingly sophisticated. The consequences of cybercrime can be devastating, leading to severe financial loss, reputational damage, operational disruption, and potential legal liabilities – for businesses of any size. As digital reliance grows, so does the urgency for businesses to protect their systems and data against these evolving threats.

In a recent survey by the Council for Scientific and Industrial Research (CSIR), 88% of South African organisations admitted to suffering at least one security breach in the past year, with 47% reportedly experiencing up to five cybersecurity incidents. Business email compromise (BEC) is becoming one of the biggest threats, with cybercriminals intercepting emails to redirect payments to fraudulent accounts. This growing trend not only highlights the need for improved cyber vigilance, but also the right type and level of insurance to safeguard businesses from financial losses. Having the appropriate cyber cover in place can help mitigate the damage, ensuring the business can recover swiftly and minimising any long-term impact.

Why is cyber insurance so specialised?
Despite becoming increasingly common, cyber insurance remains highly specialised, with policies tailored to the digital risks of each business. This means an insurer will require an in-depth understanding of the business’s digital setup to address unique vulnerabilities and safeguard against any potential risks.

However, claims can still be repudiated if policies aren’t carefully reviewed and maintained. Common reasons for rejected claims include:

• Inadequate security protocols
• Failure to update the policy with evolving business operations, or
• Non-compliance with policy requirements.

Working alongside an insurance adviser will ensure that businesses not only secure the right cover but also fully understand the requirements and limitations of their policies.

Key types of cyber cover available
Comprehensive cyber insurance can cover various types of incidents, such as:

• Data breaches: Protecting sensitive information from exposure or theft and covering costs related to notifying affected parties and managing reputational impact.
• Ransomware attacks: Covering the costs associated with restoring data and systems, and in some cases, assisting with ransom payments.
• Business interruption: Compensating for lost income and increased cost of working.

Given the complexities, insurance advisers play an important role in helping businesses choose the right policy features. They can also assist in determining the level of cover required, which will ensure businesses don’t end up overpaying in premiums, without compromising on cover.

Five strategies to mitigate cyber risk
While insurance is essential, proactive cyber risk management is equally critical. The following five strategies can help to prevent incidents of cybercrime:

1. Implement robust authentication systems: Multi-factor authentication (MFA), combined with complex passwords, creates an initial line of defence against unauthorised access, making it significantly harder for cybercriminals to breach company systems.
2. Stay vigilant with regular updates and patches: Businesses should consistently apply software patches and updates to address security vulnerabilities in programs and products. Regular patching reduces potential access points for cybercriminals to exploit.
3. Utilise advanced anti-virus solutions: Anti-virus software has become more accessible, and many offerings now include artificial intelligence and behavioural detection capabilities. These tools can help to detect and neutralise threats quickly.
4. Conduct regular employee training: Human error remains one of the top causes of cyber incidents. Regular training on phishing recognition, secure data handling and email security can greatly reduce risk.
5. Do regular secure data backups: Regular, encrypted backups of company data minimise disruption and data loss in case of ransomware or other cyber incidents.

As cyber threats continue to evolve with the advent of new technologies, a multi-layered defence is required. Combining comprehensive cyber insurance with proactive cybersecurity can help businesses to reduce the risk of significant financial and reputational damage.