Construction worksites are filled with potential hazards that Contractors Insurance helps cover, but there’s one threat that many contractors overlook – cybersecurity. Many think, “What information could I have that would be of value to them? I’m just a small company; they aren’t going to target my business.”
The fact is that if you use a computer for anything – financial transactions, emails, invoicing, etc. – your company has data cybercriminals can go after. Most construction companies have limited IT experience, which makes them attractive to hackers. As with most criminals, hackers tend to take the path of least resistance.
A 2018 survey of 1,045 small and medium-sized U.S. businesses found that more than half – 67% - suffered a cyberattack in 2018. In fact, did you know the Target data breach in 2013 started with hackers using the stolen credentials of an HVAC vendor doing business with Target? That attack allowed hackers to steal the data of 70 million customers and 40 million credit cards and debit cards.
Don’t think your business is immune to cyberattacks. It is not, and the results of a breach can be devastating. CNBC reported that cyberattacks cost businesses $200,000 on average, and 43% of cyberattacks are aimed at small businesses. These attacks are putting many companies out of business.
The Impact of a Cyber-attack on your business
A cyber-attack can impact your entire organization on many different levels. Some of those impacts could be minor inconveniences, but some could force you to shut down your business for good.
Potential Impact of a Cyber-Attack:
- Financial Losses
- Cost of response and recovery
- Cost of the investigation
- Lost revenue
- Legal and PR costs
- A decrease in the value of your company
- Lost Productivity
- Damage to your Business’s Reputation
- Legal Liability
- A Halt on Business Activities
Types of Cybersecurity Threats
Hackers have discovered many ways to access your data and continue to find new ways. Here area few more common techniques.
- Malware: Short for malicious software, malware threats include viruses, worms, trojans, and other computer programs that allow hackers to gain access to sensitive information.
- Ransomware: A form of malware, ransomware allows hackers to encrypt your files, which they will then demand a ransom to restore your access to those files.
- Social Engineering: With social engineering, hackers manipulate you or your employees into giving up confidential information, such as usernames and passwords, that they use to access data.
- Phishing: Phishing is a type of social engineering in which a hacker tricks someone into opening an email, instant message, or text message and then clicking on a malicious link.
As with any risk, your first step should be prevention. Here are ten security tips from the FCC for small businesses:
- Train Employees in Security Principles
- Protect Information, Computers, and Networks from Cyber Attacks
- Provide Firewall Security for Your Internet Connection
- Create a Mobile Device Action Plan
- Make Backup Copies of Important Business Data and Information
- Control Physical Access to your Computers and Create User Accounts for Each Employee
- Secure Your Wi-Fi Networks
- Employ Best Practices on Payment Cards
- Limit Employee Access to Data and Information, Limit Authority to Install Software
- Passwords and Authentication
When Prevention Isn’t Enough, Add Cyber Insurance!
Prevention should ALWAYS be your first line of attack. Unfortunately, hackers are continually finding new ways to access your data, so keeping up with changing cyber-security threats can be difficult, which is why Cyber Insurance is so crucial.
Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. As independent agents, we will research insurance costs and coverages among many companies to ensure you get the lowest price on all your insurance needs!