Creating Deceitful Instructions causing Financial Losses:

US based Cyber Insurer giant, Beazley Group witnessed a 400% increase in reporting of claims by the policyholders after the attackers created misleading information and in turn the policy holders faced financial losses ranging from a few thousand dollars to $3 Million in the year 2017. Unfortunately the trend of reports has been on a higher side averaging at $3,52,000 per report of claim. The attackers employed never before sophisticated methods of phishing and hacking specifically targeting sectors like Professional, Financial and Retail Services comprising of 55% of total attacks. Global Head of Beazley said that, “Fraudulent instruction emerge as a new trend which offers significant reward for the perpetrators in return for little effort, but brings potentially devastating financial consequences for the victim”
To tackle these losses, a robust IT mechanism is must but since there have been hundreds of incidents where such mechanisms have been on their knees, so the obvious solution is a Cyber Liability Insurance protecting the to-be victim against such attacks.

Following Extensions of Cyber Liability Insurance can prove to be a help:

1) Notification Costs-Costs to notify the Insured’s clients about the attack via various mediums such as print media, digital media,           hoardings or banners etc
2) Defence Costs– Legal costs which include hiring of attorneys and lawyers, attendance fees, legal documentation costs etc
3) Business Interruption-Due to such attacks, the business is interrupted causing losses which can be covered under this extension   after the system is off the grid for more than a stipulated time i.e. 12 or 24 hours
4) Regulatory Defence Costs and Fines and Penalties– The costs to investigate, defend, and settle fines and penalties (If   Insurable)  that may be assessed by a regulator.
5) Crisis Management Costs-It is wide coverage including various costs such as Response Costs, Credit Monitoring and Extortion       Rewards.
a) Response Costs– It is also known as Incident Response Costs which is after a data breach or electronic theft the expenses incurred     due to Investigation Costs and Forensic Costs are covered.
b) Credit Monitoring-The charges to monitor the credit or debit of the Insured
c) Extortion Rewards-Ransom or investigative expenses associated with a threat to misuse confidential information
6) Defamation Cover-To re-establish the image of the Insured in front of its Clients after a libel or slander, the expenses incurred are   covered under this extension.

News Source: https://www.globalreinsurance.com/news/