Companies Looking to Insurance to Prevent Cyber Attacks

  • Security

As the nation is starting to treat cyber security with more precedence, companies are starting to take notice of their fraud prevention solutions. One of the growing trends in cyber security is cyberinsurance. Reports state that over the past year cyberinsurance sales have increased 33%. Surprisingly, these purchases are spread over various industries including education, legal, personal services, business, and more. Financial institutions have jumped to a 32% increase while professional, business, legal, and accounting increased 76% during 2012. Due to awareness and growing online risks, some companies are finally starting to look at their online security the same they look at more tangible threats. Just like any other insurance policy, cyberinsurance can range in price and coverage depending on the size of the company and their needs. These services mirror other insurance policies in the sense that they aim to help companies if they should suffer damage from a cyber attack.

Some of these cyberinsurance policies also state that they aim to prevent cyber attacks. While technology per each company most likely varies, its hard to say if cyberinsurance is really a solution for preventing fraud. While there is no doubting that insurance will help cover a company if losses occur, it may be harder to prove that these policies can actually help in preventing these attacks. One of the best ways to prevent fraud is to detect it. Often times companies look into fraud prevention measures that dont truly detect fraud in early enough stages to stop it. Companies are then left to pick up the pieces after the damage is already done. By implementing identity verification and authentication either into a cyberinsurance policy or just alone, these services can help truly detect fraud. Knowing who is accessing your site or information can help find impersonators who may be either trying to steal identities or access information that is not truly theirs. Now that companies are looking into ways to protect their assets against online fraud, they may find that implementing identity verification and authentication may be the smarter solution to meet their Internet security woes.

[Contributed by EVS Marketing]