All businesses have risks and vulnerabilities, such as natural disasters like fires or storms, but IT business risks are a unique set of dangers. PwC’s Global State of Information Security Survey showed that Australian industry experiences more cyber security incidents than anywhere else in the world.
This article provides a closer look at three risks that can cause significant damage to IT Businesses.
Data Theft
Data is the key asset for many IT businesses, so the loss or theft of that data often ranks as a primary risk.
Data theft is a broad activity, and the types of data that criminals look for is just as wide-ranging. Depending on the business that’s targeted, attackers may try to steal user passwords, credit card information or other financially sensitive data, and user profiles such as where a person lives, what their job is and what they like to do. Any data that is stored electronically and connected to a network is a potential target.
It’s important to remember that while systems are often infiltrated by hackers who steel data through online networks, sometimes the security breach may come from the inside. So the physical security aspect of data theft is equally important. Security breaches conducted on-site, often by disgruntled employees, can cause even more damage than an external attack.
Denial of Service & Other Directed Attacks
Cyber-theft is the most well-known IT business risk, but there are many other technology-related risks. Online and IT businesses can face attacks directed at damaging their reputation or putting any online component of their business out of action.
“Denial of service” (or DOS) attacks flood a web site’s servers with information, paralysing the server and bringing the site down. This costs the business any revenue it gains from e-commerce or leads the site might generate. One of the most damaging types of incident an IT business can suffer; one study found DOS attacks cost Australian businesses over $180,000 per attack.
Cyber vandalism is another type of direct attack. A business’ website may be hacked and its content replaced with new, inappropriate pages. While this is usually not a financially-motivated act, it can serve to damage an IT business’ reputation if not detected quickly, as well as the costs in taking down the site and repairing it.
Viruses and Malware
Viruses and malware are an accepted part of life in the online world for both individuals and businesses, but the damage they can inflict is incalculable. Viruses can be responsible for any number of disruptive behaviours, such as opening “back doors” into a business’ network that allow more serious crimes or just destroying data.
Two of the most common forms of transmission include sending infected emails or visiting sites that transmit the virus to the client PC. Up-to-date network and anti-virus security can often protect businesses against these methods, but the rise of USB and removable drives as virus transmission vectors complicates even the most secure defence.
Identifying three of the more dangerous IT business risks shows the ever-increasing threat to businesses that operate in the online world. An adequate response to these risks, including insurance, is a necessity for those businesses more than ever.
PSC Insurance can help you protect your business against many of the IT risks you face daily.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
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