Cybercrime is one of the fastest-growing threats to businesses worldwide, and New Zealand is no exception. Cybercriminals are constantly evolving their methods to target individuals and businesses, making it more important than ever to take preventative measures.
Recent data from CERT NZ, the government cyber security agency, shows cyber incidents in New Zealand continue to rise affecting thousands of individuals and companies. More than 1,200 cyber incidents were reported between 1 April – 30 June 2024, resulting in $6.8 million* in direct financial losses to businesses and individuals alike. The true number is likely higher, as many cybercrimes go unreported (CERT NZ).
Here are the most commonly reported incidents:
- Phishing and Credential Harvesting
Phishing attempts are often disguised as legitimate emails or texts that trick recipients into revealing sensitive information like passwords or credit card numbers.
- Scams and Fraud
Scams range from investment fraud to fake business opportunities and unauthorised money transfers, causing significant financial losses.
- Unauthorised Access
Unauthorised access, where cyber criminals gain entry to secure systems, can lead to stolen data, locked systems, and major disruptions to business operations.
The risks to your business
While financial losses are a serious concern, the damage caused by cybercrime extends beyond direct financial loss. A cyber-attack can compromise sensitive business and client data, eroding trust and damaging your company’s reputation. This can have long-term effects, making it harder to attract new customers and maintain relationships with existing ones.
Under the Privacy Act 2020, businesses must notify affected individuals and the Privacy Commissioner of any data breaches. Non-compliance can lead to investigations, fines, and penalties, further compounding financial and reputational damage.
Visit the Office of the Privacy Commissioner’s website for an official guide to your privacy obligations.
How cyber insurance can help
Cyber insurance can provide vital protection, covering first-party losses (such as system restoration and data recovery) and third-party losses (claims made against you by clients or partners). However, not all cyber insurance policies are the same. The types and levels of cover available differ significantly across providers and can be complex. That’s why it’s crucial to work with an experienced broker who understands the specifics of your business and can help you select the right coverage.
Five cyber security tips to reduce your risk
While cyber insurance provides protection in the event of a cyber-attack covered under the policy, there are some practical steps you can take to reduce your risk and strengthen your protection overall.
- Install software updates promptly
Software updates aren’t just for adding new features, they’re often designed to patch security vulnerabilities. By keeping your systems up to date, you reduce the risk of attackers exploiting any system weaknesses.
- Use two-factor authentication (2FA)
Adding an extra layer of security through two-factor authentication means even if a cybercriminal gets hold of a username and password, they’ll still need to provide an additional verification method, such as a unique code sent to a user’s phone.
- Back up your data regularly
Backups are critical if your data is compromised. Ensure your backups are stored securely offsite or with a reputable cloud provider that has contingency plans in place for their own systems.
- Train your team
Employees are often the first line of defence against cyber-attacks. Properly training your team to recognise suspicious activity can go a long way in preventing breaches.
- Beware of phishing emails
Phishing scams are common. These emails often appear to be from trusted sources, asking you to verify sensitive information or make payments. Always verify any suspicious requests by contacting the organisation directly using known contact details.
Get expert advice
Navigating the complexities of cyber insurance and managing your business’s cyber risk can be overwhelming.
If you’re concerned about your cyber exposure or want to discuss your insurance options, get in touch with us today. We can guide you through the process and ensure your business is protected against the growing threat of cybercrime.
If you’d like to find out more about the difference an Abbott broker can make, please get in touch. We welcome the opportunity to review your current insurance arrangements to ensure you have the best protection available.
