Cybercriminals have recently targeted superannuation funds, proving that no business handling sensitive financial data is safe from potential cyber attacks. In the past month alone, Australian Super, has faced 600 attempted cyber attacks, with at least four members losing more than $100,000. Other funds, including Rest, Host Plus, and Australian Retirement, have also been affected.
Cyber attacks are happening every six minutes in Australia, and financial institutions are just one sector impacted by the most recent cyber event. Business owners now must recognise that cyber threats are not just an IT issue, it is a risk that may cripple operations, expose the business to significant financial loss and destroy customer trust.
Why Cyber Insurance is a Business Necessity
Cyber insurance isn’t just for large corporations; it’s a necessity for any business handling sensitive customer data. Here’s how it helps:
- Cyber insurance may cover costs associated with data breaches, forensic investigations, and legal fees.
- Policies may include support for managing downtime, helping businesses recover faster and avoid operational paralysis.
- In the event of a data breach, affected businesses must meet legal and regulatory requirements. Cyber insurance may help to navigate these obligations and prevent costly notification costs, and even assist in paying penalties.
- Cyber insurance policies may offer customer notification costs & public relationship management services to minimise reputational impact to your business.
A Real and Growing Threat
The recent attacks on superannuation funds highlight how sophisticated cybercriminals have become. Hackers can exploit weak security measures in your systems or your supply chain (including your bookkeeper!), steal login credentials, and manipulate systems to transfer funds. Even if no money is stolen, stolen data can be sold on the dark web, leading to long-term risks like identity theft.
Major companies like Optus and Medibank have already faced significant breaches, proving that all industries are at risk of a cyber attack. Recovery from such attacks takes time, resources, and a well-structured response plan, something cyber insurance can provide.
The Cost of Inaction
Without cyber insurance, businesses are exposed to the full financial burden of a cyber attack. This includes:
- Lost revenue due to operational downtime
- Lawsuits from affected customers
- Costs of forensic investigations
- Long-term reputational damage
- Costs of notifying regulators or customers
Protect Your Business Before It’s Too Late
If massive institutions like Australian Super can be breached, smaller businesses must be even more vigilant. Cyber insurance is a proactive investment that ensures financial security, regulatory compliance, and business continuity in the face of ever-growing cyber threats.
At upcover, we offer market leading cyber insurance solutions to help businesses stay ahead of cyber risks. Don’t wait for an attack to happen, secure your business today. Learn more about our cyber insurance offerings here.
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