Cyber attacks are a persistent threat to businesses and charities. According to the UK’s Department for Digital, Culture, Media and Sport’s 2019 Cyber Security Breaches Survey, for example, around a third (32%) of businesses and two in ten charities (22%) reported having cyber security breaches or attacks in the last 12 months. As in previous years, this is much higher specifically among medium businesses (60%), large businesses (61%) and high-income charities. (52%).

In our experience, among those facing breaches or attacks, the most frequent causes of loss relate to the following:

  • Phishing – the fraudulent attempt to obtain sensitive information such as usernames, passwords and credit card details where the cyber criminal disguises themselves as a trustworthy entity in an electronic communication. Here Office 365 logs and Ryuk malware represent the biggest rise within Phishing notifications
  • Data Breach – when a cyber criminal successfully infiltrates a data source and extracts sensitive information. This can be done either physically, by accessing a computer or network to steal local files where the disclosure is often inadvertent, or by bypassing a network’s security remotely
  • Business Interruption / System Failure – where an organisation is forced to close for a period of time as a result of a cyber attack, or where certain systems can no longer function properly as a result of cyber crime
Mature businessman texting in his office

Most notifications by Industry Sector 2018/9

  • Healthcare
  • Financial Institutions
  • Education

Highest Average Cost by Industry Sector 2018/9

  • Hospitality
  • Financial Institutions
  • Retail

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James joined Tarian in April 2017. James has been adjusting and broking North American casualty claims in the London market for over 16 years. For the past seven years James has specialised in adjusting cyber and technology claims in a lead capacity for a London Market Syndicate. His experience includes high profile data breaches, as well as privacy class actions in multiple US jurisdictions across a variety of industries.
Lyndsey joined Tarian in May 2019 as a Senior Claims Adjuster, to enhance Tarian’s claims service offering. ACII-qualified, she has over 14 years of experience handling both Professional Liability and Cyber claims within Lloyd’s Syndicates and company markets. Lyndsey has focused on handling cyber and technology claims in a lead capacity across the world for the last five years.