Cyber Insurance – Claims Examples

It is said that there are two types of organisations – those that have been hacked, and those that do not yet know that they have been hacked…

Every company relies on their computer systems for some aspect of running their business – whether it’s client data storage, office applications, email or marketing the business through their website. As reliance on technology increases, so too do the associated risks.

Below are some actual examples of cyber incidents experienced by clients of Cox Mahon. These are real and could easily be experienced by any size of organisation.

Ransomware

An employee clicked on a Facebook link allowing a ransomware virus to infiltrate the firm’s IT system. This resulted in five associated offices being affected as the whole system was shut down. With no cyber insurance in place, the company had to engage their external IT consultant to manage the attack. The offices were unable to function for five working days and ultimately the entire IT system had to be replaced as the attack showed up numerous inadequacies in their software protection.

Email hacking

Our client’s own customer’s email system was hacked with their bank account details being replaced by the thieves’ fraudulent bank details. Fortunately, our client’s accounts team checked the bank details with their customer before sending the money, otherwise the consequences could have been disastrous.

Phone hacking

Hackers used an open port on a VoIP phoneline to purchase £10k worth of Madagascan phone cards. The hacking was engineered over a bank holiday and thus the culprits had an extra day before the unusual activity was seen by the IT providers.

Email ghosting

Our client’s IT system was hacked with the thieves replacing their own fraudulent bank details on our client’s invoices. This resulted in one of their own clients inadvertently sending a large payment for an invoice to an unknown bank account.

Data breach

A bundle of legal papers containing sensitive information was accidentally left on a public park bench. Consequences of such data breaches can be extremely costly.

Cyber insurance could have assisted in all of the above incidents, reducing the considerable expense (both monetary and management time) in addressing the damage.

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