Cyber Threats Of 2022 – Why Cyber Insurance is Crucial Now?

In 2021, cyberattacks targeted companies, governments, and personal accounts, especially with the rise of remote work. Fortunately, cybersecurity has advanced, with more companies investing in software and insurance.

Experts warn of 2022 cyber threats. Cyber-attacks can occur at any time, so awareness and cyber insurance are crucial. This article discusses the top predicted threats of 2022 and the importance of cyber insurance to protect data and reduce cybercrime risks.

What is Cyber Insurance?

Cyber Insurance is a policy that should be made mandatory when starting a business. It is a crucial insurance to deal with cyber risks and attacks. Insurance companies have created cyber insurance to protect your business against material and immaterial cyber threats.

The insurance provides the policyholder with the first-party response on loss and a third-party reaction to cover liabilities arising from the cyber-attack. Additionally, the coverage reimburses companies for expenses related to a data breach, including legal costs.

Additionally, it is essential to understand that cyber insurance will not prevent cyberattacks but will help the company deal with them and recover.

Cyber Threats in 2022

Work From Home Invites Cyber Threats

Working from home has become a popular trend, embraced by some and criticised by others. Despite its growing acceptance, it introduces new cybersecurity risks. Employees using personal devices and unsecured Wi-Fi can make it easier for hackers to breach data or spread viruses, leading to significant security issues for both companies and employees.

For example, research by Alliance Virtual Offices detected that working from home increases cyberattack frequency by 238%.  These threats increase when working from home and can be avoided with the right cybersecurity software and knowledge provided to each employee.

Additionally, a business should be ready to face and move on from cyberattacks with cyber insurance. The insurance will cover the business with the right actions needed to recover. Recovering from a cyber-attack can be costly to the company and adds to the stress. A cyber insurance policy will provide the right funds to repair damaged devices, recover data, and inform clients about the breach. With cyber insurance, businesses know they can recover from work-from-home cyber threats.

The Rise in Ransomware Attacks

Ransomware infects devices, locking files and threatening destruction unless a ransom is paid. Research by PwC explains that 61% of technology executives expect an increase in ransomware in 2022. Attacks occur via email, links, or hacking, potentially ruining businesses through financial loss and reputation damage. Companies often pay the ransom to prevent shutdowns and data loss.

For example, Acer, a tech business, was the victim of a ransomware attack in March 2021. The hackers demanded US$50 million from the famous computer company. The team behind the attack informed Acer that they had successfully breached their data and even provided proof of it. However, whether Acer paid the amount or how authorities handled it is uncertain. 37% of global organisations said they were the victim of some form of ransomware attack in 2021.

The data above shows that ransomware attacks are very common and growing, hence why the purchase of cyber insurance has also increased. Depending on the cyber insurance policy, the insurance will provide the cost of ransom or a high portion. In addition, cyber insurance will provide repair costs and inform all customers(third-party) whose information has been breached. Additionally,  it is crucial to notify insurers when the business becomes a ransomware attack victim.

Social Engineering Attacks (Phishing) 

Phishing is a social engineering attack used to steal user data, including login and credit card numbers. Phishing has always been a cyber threat that has infected many devices through emails and links. It occurs when an attacker disguises themselves as a trustworthy sender. Phishing attackers will develop and use different technology styles to make emails or social media accounts more believable in 2022. Phishing attacks will move to SMS on mobiles and more platforms to gain better results for attackers. It is very simple to be a victim of a phishing attack, even as an IT expert. A simple click of a link can spread many viruses.

For example, recorded data has indicated that over 48% of emails sent in 2022 were phishing spam. Additionally, Google daily blocks around 100 million phishing emails to protect its platform users.

Cyber insurance is the best way a business can deal with a cyber-attack when it or its employees have become victims of social engineering attacks. The insurance will provide the correct action the company should take. The insurance will cover restoring the personal identities of affected customers and recovering compromised data. Cyber insurance policyholders will get a first-person response if they even suspect they have been affected by phishing.

Use Of Artificial Intelligence (AI)

Artificial intelligence, or AI, are computer software used to impersonate aspects of human intelligence. AI is a factor in technology that surprises everyone with its development and use. We hope experts use AI to make life easier and more efficient, but this is not always the case. The development of AI will open new doors for cyber criminals in 2022. In particular, improvements in deep fake technologies have led to effective deception. Attackers are programming AI software to hack through cybersecurity and impersonate brands/people. Therefore, attackers can use AI to breach data, crack through security, and gain victims’ trust.

Deepfakes are a huge AI threat. They are compelling and successfully trick people into believing that a person did or said something that never happened. For example, in March 2019, a deepfake attack began when the CEO of a U.K. energy firm got a convincing call from his boss, the head of the firm’s German parent company. The U.K.-based CEO heard his boss’s voice, which had exactly the right tone and a subtle German accent. The German head asked him to transfer $243,000, supposedly into the account of a Hungarian supplier. Unfortunately, the UK CEO did as he was asked and later discovered that an attacker had tricked him.

AI attacks are still considered a new style of cyber threat in 2022. However, cyber insurance will still cover a business for a victim’s loss. The coverage will include financial loss, data recovery, and third-party communications. The insurance providers may also link the company with experts who will provide the best advice and actions. Cyber insurance will help companies no matter what cybercrime they are victims of.

Why Does Every Business Need Cyber Insurance In 2022?

We hope these cyber threat predictions have made you realise how dangerous working online or using technology will be in 2022. These threats don’t mean we need to stop using the internet or tech; that would be impossible. However, one should be ready with cyber insurance. It can help a business recover from a cyber-attack quickly.

No matter how small or big your business or industry, every professional or company should buy cyber insurance as soon as possible. Many SMES believe they are less likely to be attacked by cyberattacks, but in fact, SMES are easier to attack.

In summary, a cyber-attack can occur at any time and, unfortunately, is expected this year. Hence, cyber insurance will be the safety net of 2022 for any business that uses any technology (Everyone).

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To learn more about cyber insurance and protect your company from cyber threats, contact Red Asia Insurance.