Cybercrime and Importance of cyber security insurance

Cybercrime is defined as any unlawful conduct using a computer, networked device, or network. While most cybercrimes are committed to create wealth for the perpetrators, certain cybercrimes are committed against computers or devices directly to harm or disable them. Others use computers or networks to disseminate malware, illicit information, photos, etc. Some cybercrimes target computers to infect them with a computer virus, which is subsequently propagated to other machines and, in some cases, whole networks.

One of the most severe consequences of cybercrime is financial loss. Cybercrime may comprise a wide range of profit-driven criminal behaviour, such as ransomware attacks, email and internet fraud, identity theft, and efforts to obtain bank account, credit card, or other payment card information.

Cybercriminals may steal and resell an individual’s private information or business data. As a result of the epidemic, many employees are settling into remote work patterns, and cybercrime is predicted to increase in frequency in 2022, making backup data protection even more critical.

Types of Cybercrime

Most cybercrimes are committed with the intention of financial benefit by the attackers, albeit the methods by which cybercriminals seek to be compensated vary. The following are some examples of certain forms of cybercrime:

Cyber Extortion

It is a crime that consists of an attack or threat followed by a demand for money to halt the assault. The ransomware assault is one kind of cyberextortion. In this case, the attacker gets access to an organization’s networks and encrypts its papers and files (or anything else of value), rendering the material unreachable until a ransom is paid.

Theft of identity

The attacker uses the theft of private information from computers by gaining access to them to steal identity or gain access to valuable accounts, such as banking and credit cards. Darknet markets are examples of cybercriminal markets that offer identity information, such as financial accounts, webmail, voice and video streaming, online auctions, and more. A typical target for identity thieves is personal health information.

Credit card fraud

In the darknet market, stolen credit cards can be bought and sold in bulk by hacking groups who profit by selling the cards to lower-level cybercriminals who use that information to commit fraud against individuals.

Cyber Espionage

cybercriminal hacks commit a cybercrime into systems or networks to access secret information held by the government or another entity. Profit or ideology may inspire an attack. The use of cyber espionage includes gathering, modifying, or destroying data, sending emails, text messages, or instant messages to monitor a target individual or group, and using closed-circuit television cameras to spy on the targeted individual.

Piracy of software

An assault involving the unauthorized copying, dissemination, and usage of software applications for commercial or personal gain. This cybercrime is often related to trademark infringements, copyright infringements, and patent breaches.

The Impact of Cybercrime on Businesses

McAfee published research on the economic effect of cybercrime in 2018, estimating the potential yearly cost to the global economy at approximately $600 billion, up from $45 billion in 2014.

While financial losses might be enormous as a result of cybercrime, organizations can also suffer other adverse effects as a result of illegal cyberattacks, including the following:

  • Damage to stakeholders’ perception following a security breach may cause a decline in the value of a firm.
  • In addition to possible share price reductions, firms may suffer higher borrowing rates and more difficulties acquiring additional funds due to a cyberattack.
  • Companies that fail to secure their customers’ data may face fines and penalties if sensitive client data is lost. Businesses may potentially be sued as a result of the data leak.

Cyber Security

Cyber security refers to the process of protecting computers, servers, portable devices, electrical components, networks, and data against cyberattacks. It is also known as infotech security or digital data protection.

Categories of cyber security

The phrase is used in various situations, ranging from business to mobile computing, and may be classified into a few general categories.

Network security

Network security is the technique of defending a computer network from invaders, whether they be targeted hackers or indiscriminate malware.

Application security

Application security is focused on preventing attacks on applications and systems. A compromised software may allow access to the data it is designed to protect. Security starts in the design stage, long before software or device is deployed.

Information security

Information security safeguards the confidentiality and privacy of the information while it is in storage and transit.

Operational security

The methods and choices for managing and securing digital assets are included in operational security. This includes users’ rights when connecting to a network and the protocols that govern how and where data may be kept or shared.

Importance of cyber security Insurance

Cybersecurity insurance is a policy that provides insurance to help protect a firm against data theft and other cyber security risks. In general, insurance will cover financial damages resulting from privacy violations, malware, hacking, loss of service, cyber extortion, and other cyber disasters. These include civil suit legal expenses, regulatory fines, penalties, and mandated forensic exams.

Cyber liability coverage also extends your protection beyond the essentials of general liability insurance, which does not cover cyber assaults or information theft.

Understanding what cyber liability covers is critical in investigating cyber liability coverage choices.

Cyber liability coverage protects firms against claims and expenditures (such as lost revenue, associated expenses, and reputational harm) stemming from data breaches, hacking, or cyber-attacks. Cyber liability insurance coverage often covers the following, depending on the policy you select:

  • All gadgets that might be stolen or misplaced are covered (mobile phones, laptops, tablets)
  • If you have been a victim of hacking or viruses, you will be protected.
  • Liability for defamatory blog material
  • Data tampering and theft
  • Management of crises (public links service, brand-rebuilding efforts)


Don’t leave your organization open to hundreds of hazards and risks because you don’t have the proper safeguards. Understand the importance of cybersecurity and cyber insurance, and then choose the best choice for your company. You can check out this article to get more information about the extent of cybercrime.

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