The cyber attack It has become the third fastest growing (underground) economy and the hardest hit may be medium and small businessesIn the following article, Miguel Ángel de la Torre, manager of Corredores y Empresas at Pacífico Seguros, addresses this problem and the options available to these companies.
LOOK: Minsait: Cybercrime has no specific predisposition towards any industry
How costly can a cyber attack be for companies?
The level of severity will depend on the level of exposure and value of the information that the company has, but let’s take a step back. How does the company use the data or information in its business? It uses it to manage its processes, pay payroll, control logistics and the route of a product, for example. In other words, today it uses it for everything; and if we take a step back, companies today manage their information through computer systems. This information that is posted in the virtual world is very valuable for cybercrime.
How important is cybercrime for companies?
Cybercrime is a very important part of the world’s economy today. This is the third fastest growing economy in the world. We are talking about 8 trillion dollars worldwide. This is not just someone trying to be funny and creating a virus to annoy you, but it means that there are thousands of organized criminals who are creating malicious technology to obtain your information and that of companies.
Is this a problem that affects companies of all sizes or is it only the largest ones?
Companies, especially in the financial world or very large ones, need to protect their information a lot and therefore have levels of protection, but they are still vulnerable. We know of global experiences of very large companies that have been technologically compromised and this has led to the paralysis of all their production or distribution. However, they can recover relatively quickly because they have the tools and financial backing to do so, which does not happen in a medium and small company (SMEs).
LOOK: Pacific signs 15-year agreement to market insurance to Falabella customers
How vulnerable are SMEs to these attacks?
In Peru, we are talking about around 2 million small and medium-sized businesses, which, according to the information we collect, have suffered almost 26,500 attacks per day last year. Peru is in third or fourth place in terms of the number of attacks on small and medium-sized businesses in Latin America. The largest number of attacks is due to both phishing and malware. The most regrettable thing is that only 5% of these companies have any type of protection. We are talking about a fairly high potential for attacks on small and medium-sized businesses.
Is there any reason why these companies are not cautious?
The root of the problem is most likely the lack of a risk management culture. They are not used to managing the risks they face. Perhaps as Peruvians we think that we can do everything alone. However, it should be noted that the danger of a cyber attack can be greater than damage from nature. We all know that the use of pirated software is very popular, which makes them more vulnerable.
What is the impact of a cyber attack on an SME?
The fact that they can be hacked and their information obtained will result in different types of impact. Hacking a company’s payroll, the email of its suppliers are small examples that can result in false transactions, false payments that ultimately result in the non-delivery of raw materials, non-compliance with a delivery, etc. And for an SME, this has a high economic impact, since it can result in a lawsuit for non-compliance or an interruption of the business. The estimated loss for a medium and small company resulting from a cyber attack is around 200,000 dollars (more than half a million soles) and that is no small thing.
LOOK: Pacífico Seguros: “We are actively working to promote a culture of prevention in society”
Is there an opportunity for SMEs to shift this risk of cyberattacks to insurance companies?
Of course, today, as Pacífico Seguros, we have insurance (against cyber damages) so that medium and small businesses have access to protection. We have structured it in a simple and user-friendly way based on certain basic information, depending on the type of sector, the economic flow at risk, so that they can be covered in case they are exposed to an issue of information capture by ‘phishing’, ‘malware’, etc.; and everything that this entails.
What does this refer to?
When we talk about the capture of information through a cyber attack, the victim may be extorted, may fail to meet some financial obligation or may be sued and this results in civil liability. This economic impact on the business of a small and medium-sized company can now be covered by insurance.
What is the cost of such insurance compared to that backup benefit?
The cost will always depend on the company’s exposure and the type of industry it belongs to, but on average we are talking about an annual cost of 600 dollars. For that amount your investment will be protected. This is very important because a cyber attack can not only generate an economic loss from the paralysis of a company, but also a loss of customers and recovering the latter is not so simple.
RECOMMENDED VIDEO
