As big corporations begin to scramble for protection against cyber attacks, one organization rarely associated with the insurance industry is lauding the benefits of cyber insurance. The FBI has raised warnings that big businesses are not the only entities at risk of falling prey to hackers. Last year, the FBI, which has a special Internet fraud center, received 25,000 complaints of hacking or fraud every month. The Bureau’s Internet fraud report release last year claimed that victims of identity theft alone suffered losses in the millions.
Gone are the days were hackers are characterized as one-man cyber outlaws whose dubious attempts were easily identified and avoided. As technology has progressed so too have the methods and techniques of hackers. The FBI has been ardent in its assertion that cyber crime is no longer the playground for ambiguous groups such as Anonymous, but a full-fledged syndicate residing in Asia and Eastern Europe.
There are several measures that can be taken to bolster protection against hackers, such as choosing strong passwords and changing them often. Jim Lewis, a cyber expert with the Center for Strategic and International Studies, suggests that parents should not use the same computer their children use to do financial transactions.
He also notes that a growing number of insurance companies are offering individuals and families coverage from Internet fraud. While these policies can be expensive, their price compared to the windfall they offer is reasonable. The FBI, while not naming specific companies through which such policies can be attained, shares Lewis’ sentiments regarding the value of cyber insurance.
