With cybercrime on the rise, Kiwi businesses have a new type of security to consider.
In Quarter 1 of FY23, there was a 66% increase in direct financial loss from cyber incidents compared to the last quarter, according to CERT NZ.
Human error is considered one of the leading causes of cyber incidents.
While it's a daunting thought, it means there are plenty of simple yet effective ways to help protect yourself, your staff, and your business.
We’ll look at what cybercrime is, the most common types, and some ways to help keep your business safer.
What is cybercrime?
Cyberattacks extend way beyond the major breaches of security we hear about in the media.
Among the most common cybercrimes are phishing and credential harvesting, scams, fraud, and unauthorised access, according to CERT NZ. People get duped by these schemes.
Tim Barratt, Operations Manager for specialist cyber insurance underwriter Emergence Insurance is concerned that small business owners may not realise that a breach of their personal data could put their company at risk.
“If criminals gain access to your passport and driver’s license details, they could have the identification needed to start applying for credit in your name,” Barratt says.
“You might know nothing about it until you apply for business finance and find that loan applications have been refused, your credit rating has fallen through the floor, and you can’t get any finance until the situation is resolved.”
These tips to help protect personal data can also help to boost your business security.
Make sure you follow the Government’s advice for ransomware, business email compromise, and other threats.
“You and your staff must be vigilant, verifying every link before clicking on it”
1. Take password security seriously
Despite all the warnings, the ten most common passwords in 2022 included 123456, password, abc123 and iloveyou.
Using strong passwords and a different password each time can be an effective way to help boost security. It can also help to use passphrases rather than passwords, as these can be easier to remember but also harder to crack.
Another option is to invest in a password software manager to create and remember passwords for you.
Multifactor authentication, such as a six-digit code sent to your phone, can add another layer of protection.
2. Back up your data regularly
Victims of a cyberattack may lose data created after their last backup.
By backing up your data regularly and keeping the backups offline or secure from your system, retrieving vital information following an attack can be less complicated.
3. Prioritise automated updates
If developers find a vulnerability in their software, they fix it with a patch, correction, or change. You do that with your mobile phone when you receive a security alert.
When you opt to have these updates applied automatically to your own software, criminals can have less time to exploit the weakness.
3. Help to protect your personal information
Many organisations ask for more personal information than they require simply because it's helpful to have.
Fraser Walker, National Business Development Manager at Emergence Insurance says, "the less information you provide, the less you have to worry about if they’re hacked. For instance, if your birth date isn’t mandatory, why share it?”
4. Check before you click
Human error is considered the leading cause of cyber breaches in New Zealand.
“As technology becomes more sophisticated, scams are getting harder to detect,” Walker says. “You and your staff must be vigilant, verifying every link before clicking on it.”
5. Consider cyber insurance cover
While prevention is better than cure, cyber incidents are increasingly becoming a case of ‘when’ and not ‘if’ for individuals and small businesses.
The right cover can give you peace of mind, so you can focus on optimising your business. Speak with your broker today to discuss what's right for you.
Find out more
Emergence has developed cyber insurance solutions for SMEs and corporates in the New Zealand market. Find out more about this and other protection today by contacting a Steadfast broker.
Emergence NZ Limited acts under a binding authority as agent for certain underwriters at Lloyd’s.
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