Fergusons Insurance Brokers

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39B Davey St Frankston, Victoria
Phone: (613) 9783-3200

What is cyber crime?

Cyber crime encompasses almost any criminal activity that can be perpetrated via the internet and computers. Cyber crimes include cyber-stalking, industrial espionage and information theft, fraud, extortion, identity theft, phishing scams and cyber terrorism. Cyber criminals use malware and viruses, computer and network hacking, denial of service attacks and fraudulent online scams to perpetrate their crimes. They find it relatively easy to access computers and networks inadequately protected by virus software or passwords. They will also directly steal laptops, computers and mobile devices and take advantage of computers that are left unattended.

 

Cyber crime costs Australian businesses $4.5 billion annually, yet it remains one of the least insured policy areas. 

 

It highlights a very serious – and potentially expensive – issue that all Australian businesses are facing right now.  Yet many are doing very little about the potential damage that can be caused by cyber crime.  In fact it’s been highlighted by several within the insurance industry as one of the few high-risk areas that is largely ignored by industries and brokers.

Matthew Clarke, Australasian PI Manager, Financial Lines, Chartis, describes cyber crime as “the most talked about, least sold insurance policy in the market”.  He said research from ‘Unisys Security Index - Australia, 2011’ revealed that 85% of Australians would stop dealing with an organisation if their data was breached.

In November last year, computer hackers from a Romanian syndicate allegedly accessed the IT systems of 100 small Australian retail outlets and stole credit card details of over 500,000 customers.

Losses from the single incident – the biggest theft of credit card data in Australia so far – added up to around $30 million. The probe to bring down the gang involved law enforcement officers from agencies in 13 countries. The Australian Federal Police now considers cyber crime one of its major areas of investigation.

Please ask a Fergusons Account Executive if you require information regarding the insurances available for these issues.