Increased risks of cyber security threats
We’ve all seen the warnings and we’ve all seen the headlines – cybercrime is here to stay. With each passing year, the sophistication of cyber criminals seems to become more and more advanced, leading businesses large and small to the position that exposure to such risks could prove catastrophic.
In research conducted by Juniper Research, it was estimated that the global cost of cybercrime was somewhere in the value of $500 million back in 2015. If that may sound relatively small compared to the global economy, learning that the same research estimates the value for 2019 to be approximately $2 trillion will undoubtedly raise concerns.
Types of crimes
So, while the figures are startling, awareness of the types of crimes being committed needs to be heightened among business owners. It’s no longer simply the case that cybercrime is one person using another’s details to make illicit purchases; the potential damages are far more severe.
Among the most common cybercrimes committed, and ones that have been brought to light with the onset of the General Data Protection Regulation (GDPR) updates, relate to data breaches. This could take the form of accessing personal information held by public bodies, or the accessing of trade secrets compromising intellectual property rights.
Then, of course, there are more obvious forms of cybercrime. Denial of service attacks on company servers and the manipulation of web platforms could well cost exposed businesses millions of pounds in online revenue. It pays, therefore, to be prepared and covered for just such issues.
Cyber insurance
It stands to reason that a growing industry is cyber insurance, with more and more companies looking to protect their digital environment from attacks. However, understanding precisely what is required from a policy calculating the level of exposure needed to attain suitable coverage is still causing a headache.
The recent case of Equifax is demonstrative of the potential miscalculation and the losses incurred. Calculating the cyber risk at no more than $150 million dollars, a large-scale data breach saw the company lose $3.5 billion in its market value. Quite clearly, there was something of a disparity between the estimate and the reality. Of course, such losses can also be attributed to brand damage, fines, lawsuits, etc., but such a clear gap shows there is still work to be done.
Increasing security
As the Equifax examples goes to show, while cyber insurance may prove an affordable and worthwhile option for some, there is no substitute to having in place a number of security protocols that limit exposure at its source. This means investment in developing suitable security measures.
While such activity could well prove invaluable to your company’s online security, it would also quality for research and development tax credits from HMRC. Try our R&D tax credits calculator today or contact R&D Tax Solutions to discuss in further detail.
