cyber insurance



In today’s digital age, businesses and individuals face a growing threat of cyber attacks.

Cyber criminals are constantly developing new methods to steal sensitive data and cause financial damage. Cyber insurance protects businesses and individuals from the risks associated with cyber attacks. 

Data from The South African Banking Risk Information Centre (Sabric) shows that losses in digital banking in South Africa have increased by 45%, while debit card fraud accounted for 55.3% of all card fraud, and sim-swap fraud increased by 63% in 2021.

In this blog post, we will explore why cyber insurance is critical for businesses and individuals, and how you can ensure you’re comprehensively covered against online threats.


Hacking and Malware as Cyber Threats

Hacking and malware are common methods used by cyber criminals to defraud businesses and individuals, steal sensitive data, extort money, and disrupt business operations.


DID YOU KNOW: According to Seacom, South Africa remains the most targeted African country in terms of ransomware and business email compromise.


Hacking involves gaining unauthorized access to a computer system or network, while malware refers to any type of software designed to harm a computer system or network. 

  • One common type of hacking is known as ransomware, where hackers gain access to a business’s computer system and encrypt its data, demanding payment in exchange for the decryption key. 

  • Another example is phishing scams, where cyber criminals send emails that appear to be from a legitimate source, tricking individuals into providing sensitive information such as usernames and passwords.

  • Malware can also be used to cause damage to computer systems and networks. For example, a virus can spread through a network, infecting multiple computers and causing system failures. Other types of malware include Trojan horses, which appear to be legitimate software but contain malicious code, and spyware, which can monitor a user’s activity and steal sensitive information.


cyber insurance


Cyber Insurance in South Africa

South Africa has witnessed a dramatic increase in ransomware attacks over the last few years.

When choosing a cyber insurance policy, it is important to consider factors such as coverage limits, deductibles, and exclusions. 

Cyber policies typically cover losses related to data breaches, hacking, network downtime, and cyber extortion

Policies can vary in terms of coverage and exclusions, so it is important to work with an experienced insurance broker who can help you find the right policy for your needs.


Why Businesses Need Cyber Insurance

Businesses are especially vulnerable to cyber attacks, which can result in significant financial and reputational damage.

Cyber insurance can help businesses recover from the financial and reputational damage caused by cyber attacks.


Why Individuals Need Cyber Insurance

Individuals are also at risk of cyber attacks, such as identity theft, phishing scams, and malware infectionsThese types of attacks can lead to financial losses, damage to credit scores, and loss of personal data.

In South Africa, cyber crime is on the rise, with an estimated 52 cybercrime victims per one million internet users.


How To Avoid Becoming A Cybercrime Victim

  • Think twice before you click that link or download that attachment.

  • Be suspicious of deals that seem too good to be true – if something sounds way too tempting or irresistible, it’s probably a scam.

  • Protect all your tech – get a trusted antivirus or security app on your phone, tablet, laptop, and any other device to catch malware and hackers.

  • Use a two-step login whenever you can – hackers want your passwords and usernames, so set up extra login steps like codes sent to your phone when available. It adds an extra layer of protection.

  • Check what you share on social media – the more details and personal info you post on accounts like Facebook, Instagram or Linkedin, the easier it is for scammers to trick you with messages targeted just for you.

  • Backup regularly – make copies of all your pictures, documents, and anything else on your devices in case anything gets hacked, infected or lost.


How Can We Help?

By taking proactive steps to protect against cyber attacks, you can help minimize the financial and reputational damage caused by cyber crime.

As an experienced insurance broker in South Africa, we can help you navigate the complex world of cyber insurance and find the right policy for your personal or business needs.