CFC Underwriting is releasing monthly anonymous cases studies on cyber claims in a bid to raise awareness
Human error has accounted for 75% of all cyber claims this year, according to CFC Underwriting.
The MGA responded to more than 1,000 cyber claims in the past year.
The firm warned that all industries are at risk of cyber-attacks, but UK SMEs are particularly vulnerable with response and policy wording being the key to their survival in the aftermath of an attack.
This was the message given in its “CFC 102: The Next Level of Cyber” session last Thursday, with cyber theft of funds, data breach and ransomware as the top three attacks to be wary of.
During the workshop Lindsey Nelson, international cyber team leader at CFC, highlighted that if Microsoft Office 365 online is used by businesses without the dual factor authentication it can leave them vulnerable to hackers. She added that 37% of claims activity is theft of funds.
It follows CFC releasing anonymous case studies monthly over social media of cyber claims it has dealt with. August’s detailed a school fee fraud scam.
In recent years there has been a shift from traditional crime which includes theft of cash, goods and damage to property, to cybercrime – theft of electronic funds, data and damage to digital assets.
Chloe Weaving, US cyber underwriter at CFC, explained that cyber-attacks for the UK are also “disproportionately higher as opposed to other countries due to faster claims payments”.
Trusted environment
Although Roger Francis, CFC’s newest cyber claims director, told Insurance Times that putting it down to human error is just one part of it.
“All of those incidents stem from the concept of trust, the idea that someone’s inbox is a trusted environment so all the interactions that occur within are implicit in terms of that nature.
“In reality the incidents that you hear are an adaption of existing types of fraud that we have always seen.”
Francis said he was in favour of training for employees of businesses to help them spot threats easily, and therefore reducing the risk of human error being a main concern.
CFC claims to be the only underwriter to offer unlimited reinstatement on a first-party basis.
No comments yet