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Cyber crime costing UK economy £27bn

Criminals "piggy-backing" into larger organisations via vulnerable SMEs
 Cyber crime costing UK economy £27bn
 
 

According to Cabinet Office and National security and intelligence report: Keeping the UK safe in cyber space, cyber crime and data breaches are costing the UK economy £27 billion.

According to industrial insurance specialist Allianz Global Corporate & Specialty (AGCS),

On the eve of the launch of Allianz Cyber Protect, an initiative to enable businesses to protect themselves against cyber criminals, AGCS revealed that all businesses need to review their vulnerability to a cyber attack and the financial and reputational damage it may cause.

Allianz is offering a comprehensive suite of three insurance products to address various first and third party liability issues that can arise from a serious cyber attack or data breach. Nigel Pearson (Global Head of Fidelity), who is responsible for cyber at AGCS, said: “Recent government statistics have shown 93% of large UK companies and 87% of smaller businesses have experienced a data breach in the past 12 months. Companies are facing attacks on a daily basis and firms, such as online retailers, where the business has critical dependency on digital networks, may not be fully aware of how a cyber attack could be fatal to their business. Many cyber criminals are now hacking into systems of SME firms as a way of ‘piggy-backing’ access to larger companies they partner with.”

“Data protection legislation around the globe is changing rapidly. Within the next few years new legislation will be in place in the European Union (EU) which will significantly increase the financial burden placed on companies. Under new proposal from the EU, companies could be fined up to 2% of their turnover.”

“When a client suffers a loss as a result of a cyber attack or a loss of data, the Allianz Cyber Protect policy will provide substantial limits up to €50m. Most importantly Allianz clients have access to a panel of forensic IT experts who will work with them to manage a cyber incident.”

Elke Vagenende AGCS underwriting product developer, added: “Reputation is an intangible asset which cannot be seen or felt, yet it is a decisive factor in a business’s future success. Irreversible damage can be done to a brand’s reputation if they do not have risk management and mitigation in place to combat a data breach. On average reputation accounts for 24% of a company’s value. The digital age has increased vulnerability with the potential for reputational harm via social media, which can carry information across the globe instantly. This product suite covers the costs of crisis communication for the purpose of safeguarding the company's reputation.”

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