Unfortunately, still in 2022, there is a growing number of cyber-attacks and breaches that keep affecting businesses globally. They are one of the threatening risks that follow when starting a business in this generation.
Your company could be an SME, franchise, or a huge corporation – any business can be a victim of a cyber-attack. Countless cyber-attacks can affect your business – from phishing, malware, ransomware, AI deepfakes, etc.
When faced with a cyber-attack like malware, a business can feel lost and ruined. It is a place no business should be without IT experts. This case study will explain how an SME marketing agency was infected by a malware attack and why cyber insurance was the best resolution.
Client background: Marketing Agency Business
Our client is an SME marketing agency in Hong Kong and aims to grow in Asia. They have various clients from different industries and manage their marketing. The duties include controlling their social media, advertising, and content creation activities.
As a marketing agency, they have a lot of sensitive data from different companies. Data such as credit card numbers, company strategies/secrets and various account details. Hence, they must be careful about cyber threats and prepare for possible cyber threats such as malware attacks.
Client problem: Sudden Trojan Malware Attack
Unfortunately, the marketing agency was a victim of a trojan malware attack. The attack began when the company received an email requesting marketing services. The email contained an attachment, which the marketing company believed was more information about the interested party.
The file was downloaded onto the computer and seemed like a harmless attachment. Although, the Trojan malware automatically installed and ran every time the company turned on the infected device.
The marketing agency still had no idea that the malware infected their devices until the computer started to slow down and files were not opening. Then, after a severe cyber investigation, they discovered the malware spread through the server and onto various connected devices (ten laptops and ten phones).
Malware like this could destroy the company and its reputation. In addition, cybercriminals may spread the data to competitors or could sell them online. These situations can result in various lawsuits from clients if the breach affects their business.
The marketing company had to act fast and protect clients and their business.
How Cyber Insurance Was the Best Solution Post Malware Attack?
Fortunately, the marketing business had purchased cyber insurance when they began. Cyber insurance is one of the most important insurance every business needs before starting any clients or customer databases.
Having the insurance automatically connects them with a range of cyber experts who will help resolve the problem as soon as possible. Additionally, the policy will reimburse the marketing agency for expenses related to a data breach, legal costs, data loss or any financial loss due to the malware attack.
Therefore, the insurance reimbursed the following costs:
- Incident response expenses (cyber police first-person response): HKD 80,000
- Data Loss (restoring corrupted data): HKD 50,00
- Malware removal fees (multiple devices): HKD 60,000
- Cyber security testing (checking for the existing virus): HKD 40,000
- Cyber security consultation fees: HKD 60,000
Total Costs: HKD 290,000
The internet is a perfect way to grow your business and reach success, but you should understand all the cyber risks. In addition, it is as essential to have high-quality cyber security.
Having good cyber security and cyber insurance can save any business a large amount of financial loss and reduce reputation damage. No matter what cyber-attack a company faces, cyber insurance will cover the damage and help the business recover from malware attacks to AI attacks.
It is the generation to be ready for the worst and have the proper cyber protection just in case.
To learn more about cyber insurance and protect your company from malware attacks, contact Red Asia Insurance.