Study suggests 75pc cyber claims preventable

Human error is behind a vast majority of cyber claims, with around 75% considered easily preventable. This is according to research from specialists at CFC, whose own data suggests that, of claims notified in 2018, the vast majority involved theft of funds, ransomware, extortion and non-malicious data breaches, all of which usually start with a human error or oversight such as clicking on a phishing link or not following up a wire transfer request with a phone call.

Cyber product leader at CFC, James Burns says that unless businesses start taking note of these increasingly prevalent incidents, the problem will only become more widespread.

“The material impact of a cyber event is real and it is becoming increasingly clear that many events could be prevented through basic employee awareness programmes on topics ranging from phishing scams to the importance of password complexity," he explained.

“Cyber insurance is about more than just affirmative cover, so cyber insurance providers should be offering comprehensive risk management solutions that include things like cybersecurity training for employees. Small businesses, in particular, might not always have the time or resources required to seek out access to these vital tools, so a cyber insurance policy that can provide this is incredibly valuable. Along with other monitoring and preparedness tools, cyber education services help keep an event from occurring in the first place and ensure businesses are better able to respond and recover if it does.”

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