The Reschini Blog: The Scope of Cybercrime

“Cybercriminals and certain foreign nations are not only at the door; they are inside our walls, and often have been for quite some time.  Defending our most valuable information should be of paramount importance for our citizens, businesses, and academic institutions.”  – Matt LaVigna, President and CEO, National Cyber Forensics Training Alliance (NCFTA).

While the fact of cybercrime can hardly be news, the scope of it recently made worldwide news, as multiple departments across the federal government were discovered to have been infiltrated by foreign actors, sometimes for months before being detected.  In that time, untold volumes of sensitive documents impacting U.S. homeland security, relations with countries around the world, financial and diplomatic secrets, and much more may have been compromised, perhaps permanently.

The same dynamic impacts businesses of all sizes, across all industries and locations.  Malicious actors with an abundance of skill and lack of ethics can many times forge their way into an organization’s cyber presence.  Their ability to monetize information can be just as shocking in its effectiveness as the way they break codes and seize data.

The NCFTA reports that, while cybercrime is a relatively underreported event, consider that over the last five years, the Internet Crime Complaint Center received more than 1.7 million complaints and, in 2019 alone, reported losses exceeding $3.5 billion.

The coronavirus pandemic’s impact on cybersecurity may be that, as pressure increases on budgets as companies recover, resources dedicated to cyber protection get reduced.  Sharing information among peers about cybersecurity best practices helps, as do specific tactics to protect software, hardware, employee activities, regular backups and encryptions.

But not to be forgotten in this collection of cybercrime defense is having adequate and appropriate insurance coverage.  As the types and levels of potential damage from cybercrime can vary, so do the insurance options available to organizations.

The professionals at The Reschini Group can assist you in evaluating your exposure to cybercrime, and in fashioning a coverage package that keeps you and your organization safe.  Because the threat is everywhere, and growing.

Copyright 2021 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.