Cybercrime is on the rise – ranging from identity fraud and email theft to unauthorized transfer or payment of funds, phishing scams, and even fraud and extortion. And depending on the nature of the event, you are left dealing with the problem and, unfortunately, it may cost a considerable amount to resolve it.
What is Cybercrime?
An individual discovers that a large sum was wired from his bank to another country. When trying to understand what took place, the bank advised him that they received an email from his account. However, the individual finds out that when the bank contacted his cell phone to validate the transaction, the criminal had also redirected the call to his own phone and verified the transfer. The bank then contacts Homeland Security as required but has no culpability, since the transfer was directed from his computer and verified.
While browsing the internet, the individual receives a message stating that access to their files and computer would be locked if a ransom paid in bitcoin is not received in the next 24 hours.
An executive assistant receives an email from you asking to wire money for an upcoming purchase. Your assistant is aware of the purchase, and the email comes from you, so the money is wired.
Cybercrime takes many shapes and forms, but each can cost you money and create havoc and uncertainty!
Why Is This Happening?
The Internet of Things has become an integral part of our life. From devices that take verbal commands to children’s dolls that verbally respond, and refrigerators that tell you what you need to purchase, the IoT is pervasive, in all aspects of life. With every connected device and user in your home, the possibility of an intrusion increases. Connectivity of one device to another via Bluetooth or open Wi-Fi in a public place can all contribute to the ability of a bad operator taking advantage of your family.
Steps to Take to Mitigate the Risk.
In the Second Annual Security Study of 55 family wealth firms, The Family Wealth Alliance found that the threat is growing. But numerous steps can and should be taken, that can be referenced in the link above.
Adding insurance coverage for cyber fraud could be extremely beneficial, especially with how quickly the threat is growing. Depending upon who your current home insurance company is, coverage may already exist in your policy. If it’s not, you may be able to add it or enhance the scope of your coverage. But don’t assume “Identity Theft,” which many homeowner’s policies do provide, covers you for the actual loss of funds. In most instances, Identity Theft covers you for forensic accounting services to restore your credit, but not the actual reimbursement for a financial loss.
The good news is that several higher-end insurers do offer actual cyber fraud coverage to protect you and your family by providing both financial and emotional recovery in the unfortunate event you become a victim. Coverages range from straight financial loss to packages that provide professional services including Identity Monitoring, Cyber Extortion Expenses, Data Restoration, Crisis Management Expense, and Cyberbullying.
This is where it’s useful to turn to a high-end insurance company that specializes in luxury homeowner’s insurance. At Kettle Creek Insurance, an experienced agent will be able to assist you in sorting through the different available packages, as part of a new and improved homeowner’s insurance program.