The Potential Cost Of Cyber Crime
£1.15 million: The potential cost of Cybercrime
Whether you are a big or small recruitment agency, cybercrime is arguably the biggest risk for businesses like yours. Both established or start-up agencies need to protect their data. You only need to read a newspaper or watch the news to know that cyber-attacks are a rapidly growing concern - think the Sony, Carphone Warehouse and Ashley Madison hacking scandals.
Are you a part of the 2%?
According to a UK government report, 81% of large firms have experienced a security breach in the past 12 months. And despite this, only 2% have appropriate insurance cover that could help them recover from a serious cyber-attack. Is this you?
The threat was underlined in a separate security survey by PWC, which found that large firms hit with the most serious security breach incurred average costs in the region of £600,000 to £1.15 million.
Data in the recruitment industry
I think we can all agree that data is the recruitment industries most valuable asset, which is why it needs to be protected adequately. If the worst were to happen how would you mitigate losses from a variety of cyber incidents? Not only would you need to deal with the breach, potentially losing National Insurance and bank account details but you would also have to deal with the reputational damage and the legal costs that come hand in hand with a cyber-attack.
According to John Aspinall, Director at Jelf Manson, “the Ashley Madison attacks showed us that the threat is real, regardless of who is behind them and what their motives are.” It is essential to realise that it isn’t just large companies that are at risk, but everyday businesses are being attacked too. These breaches can range from malicious attacks shutting down servers to fraudulent activity and data theft.
As technology is so heavily relied upon in the recruitment industry, cyber insurance will help to protect your client data and the system you rely on for the day-to-day running of the business. Unlike a standard business interruption policy, cyber insurance can provide cover for the consequential loss of profits.
Third party data is another reason to take out cyber insurance; commercial contracts and non-disclosure agreements can contain clauses regarding the security of this data, which can lead to expensive claims in the event of a breach. “Of course, you don’t want a visit from the information commissioner leading to a fine or a lawsuit”, John warns.
No matter the size of your business there is a cyber-package available to suit each company’s individual requirements. Even smaller-end businesses need to protect themselves, no matter how insignificant they feel the risk may be to them.
Senior Account Executive
Jelf | Manson Mob: 07710 447448