As hackers and cyber criminals become more skilled, it seems as if data breaches and cyber threats are increasingly common. And the problem isn’t limited to large businesses. Small businesses and individuals also feel the sting when sensitive data are lost or compromised, and for some the result can be catastrophic—including lost revenue, compromised personal data, and even extortion demands from cyber thieves.

So, what kinds of cyber threats place you at greatest risk, and what are your insurance options when seeking to recoup or mitigate losses due to cybercrime?

Security Risks of Public Wifi

 One of the most common vulnerabilities to cybercrime arises when employees use their personal devices to access or communicate sensitive company data while offsite. Using the free wifi service offered by a third party (such as a café or hotel) can leave sensitive data unprotected while in transit.   Let’s look at a few examples.

Man-in-the-Middle attacks occur when data are intercepted by a cybercriminal while in transit. Lax or absent security protocols on third-party wifi systems can allow cyber thieves to intercept and read sensitive communications while in transit, and without any sign that your information has been compromised.

Encryption failure is another common cause of data breaches. When most routers are shipped from the manufacturer, their encryption default setting is off, meaning that the business setting up the wifi must activate the encryption function to ensure that all communications that pass through the router are translated into code while in transit. The catch: there’s no way of knowing who set up a third-party’s wifi or how diligent they were in establishing security protocols.

Snooping or sniffing is a technique used by cyber criminals to pinpoint vulnerabilities in a wifi network. Basically they probe the system remotely, searching for a soft spot in the network’s security. If a hacker is successful in finding an entry point, they may be able to view the web pages you visited as well as any communications you sent or received.

Rogue access points are basically deceptive hotspots that trick users into believing they are logged on to the wifi provider’s secure network, when in fact they are using a cyber criminal’s network, leaving their data unprotected. Cyber criminals frequently use similar spellings of a wifi provider’s name to trick users into believing they are on a legitimate network.

Ransomware is a particularly dangerous type of malware that not only compromises your data, but threatens to make your sensitive information public unless you agree to pay a ransom set by the thieves.

How You Can Protect Yourself and Your Business

Given the abundance of cyber threats out there, the task of guarding against all of them can seem daunting. Fortunately, there are several types of insurance that can give you the peace of mind you need.

Security and privacy liability insurance covers third-party claims arising from a failure of the insured’s network security or a failure to protect data. Insurance also responds to regulatory actions in connection with a security failure, privacy breach, or the failure to disclose a security failure or privacy breach.

Event management insurance responds to a security failure or privacy breach by paying costs of notifications, public relations, and other services to assist in managing and mitigating a cyber incident. Covered responses include forensic investigations, legal consultations, and identity monitoring costs for victims of a breach.

Network business interruption insurance protects you against material losses related to cybercrime by reimbursing you for resulting lost income and operating expenses.

Cyber extortion insurance responds to the threat of intentional security attacks against a company by an outsider attempting to extort money, securities, or other valuables. This coverage extends to ransom payments made to end the threat as well as to the costs of an investigation into the cause of the threat.

At MAGIS, we take cybercrime seriously. That’s why we offer each of the insurance options mentioned above to better protect you, your data, and your business from cyber criminals. Why take the risk that your data may be compromised whenever you or one of your employees uses a third-party wifi network? Get the security you need and the peace of mind you deserve. Contact MAGIS today, and discover how we can help.