Despite believing they were immune, a small law firm in Maryland fell victim to a ransomware attack. Similarly, an accounting firm in the Midwest lost all access to its client information, financial records and tax files. They assumed that antivirus software was all the security they needed to thwart a cyberattack.

In both incidents, the victims were small businesses that fell prey to sophisticated cyberattacks because of hidden security vulnerabilities that a comprehensive risk assessment could’ve identified.

When it comes to IT risk assessments, business owners have several misconceptions that leave them vulnerable. In this blog, we’ll uncover common cyber risk assessment myths and discuss the reality. By the end, we’ll also show you how to build an effective risk assessment strategy.

Misconceptions can hurt your business

Here are some common myths that all business owners must avoid:

Myth 1: We’re Too Small to be a Target

Reality: Hackers often use automated tools to look for vulnerabilities in a system, and small businesses invariably end up on the receiving end since many of them lack the resources to build a strong cybersecurity posture.

Myth 2: Risk Assessments are too Expensive.  

Reality: When you factor in the actual business loss due to a cyberattack, investing in proactive cybersecurity makes for a smart business decision. Proactive security practices not only protect your money but also save you from costly lawsuits and reputational damage.

You can utilize our Recovery Time Calculator to see what the cost of downtime looks like for your business.

Myth 3: We have Antivirus Software, so we’re Protected.

Reality: You can’t rely only on antivirus software to protect your IT infrastructure. Cybercriminals today have become highly skilled and can effortlessly deploy advanced threats. To secure your business, you must have a comprehensive risk assessment strategy.

Regularly assessing and addressing vulnerabilities will not only protect your business but also lay the foundation for your long-term business growth.

Myth 4: Risk Assessments are a One-Time Event.

Reality: Today’s businesses operate in a threat landscape that is constantly evolving. Without regular risk assessments, you won’t be able to build a strong cybersecurity posture. Without regular risk scans, new vulnerabilities can creep in and leave your business vulnerable to cyberthreats.

Myth 5: We can Handle Risk Assessment Ourselves.

Reality: Businesses often rely on internal resources to maintain cybersecurity. However, joining forces with an IT service provider can be a game changer for your business. An experienced service provider such as Databranch has the expertise, resources and advanced tools to carry out effective assessments. We also have the latest knowledge of emerging threats and vulnerabilities, so we can protect your business better than anybody else. 

Why You Need an IT Service Provider

Teaming up with an experienced IT service provider can help you:

1. Access accurate and up-to-date information on risk assessments without getting sidetracked by misconceptions.
2. Conduct thorough assessments to identify weaknesses in your IT systems and resolve them before they can pose any threat.
3. Implement a robust security strategy that can help protect your business from a wide range of threats.
4. Ensure your business has a fighting chance against evolving threats so you can focus on building your business instead of worrying about cybersecurity.

Take Control of Your Risks

Are you finding it a challenge to manage your IT risks all on your own? Download our checklist today for comprehensive steps to get started.

Cyberthreats are always lurking, and with one mistake, you could be the next victim. Cyber incidents can slam the breaks on your growth. That’s why you need Databranch’s team of IT experts to help you build a resilient cybersecurity posture. Team up with Databranch today for professional help navigating the complexities of cybersecurity with ease.

Schedule a free consultation now!

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A solid tech plan is non-negotiable for any business that wants to succeed in today’s competitive tech landscape.

When paired with effective budgeting, this plan ensures that your technology investments not only align with your organizational goals, but also make the best use of your resources.

As we approach a new year, now is the perfect time to reassess your technology strategy. Join us as we explore the intricacies of tech planning and budgeting to set your business up for growth.

Crafting an Effective Tech Plan

A tech plan is a roadmap for your tech investments and can help you in several key ways:

– Alignment with business goals: Ensures that all technology investments support broader organizational objectives.

– Proactive resource management: Allows you to anticipate needs and allocate funds efficiently, reducing the risk of unexpected expenses.

– Enhanced decision making: Provides a clearer picture of priorities and helps in making informed choices about technology investments.

Crafting Your Tech Budget: A Step-by-Step Guide

With a strong tech plan established, it’s time to shift focus to budgeting. Remember: instead of carrying over last year’s budget, analyze your current needs and look for opportunities to enhance operations.

Ensure you focus on these four critical areas:

1. Routine IT Services

Ensuring IT systems are running smoothly and efficiently is crucial for minimizing downtime and maintaining productivity. Additionally, regular monitoring and maintenance of your infrastructure are essential for identifying vulnerabilities and safeguarding against cyberthreats. A robust vulnerability scanning solution is key to protecting your network.

It is important to conduct vulnerability assessments regularly, at least every quarter if not more frequently. This is due to the dynamic nature of information technology. 

2. IT Projects

Don’t overlook key initiatives to improve or expand your technology capabilities, such as strengthening defenses against cyberattacks, implementing new software, or upgrading outdated hardware.

Conducting security assessments or penetration testing can help identify weak spots where projects can then be focused. Reach out to Databranch today if you’ve interested in conducting a penetration test for your business.

3. Technology Refreshes

While sticking with legacy systems may appear cost-effective, it can hurt productivity and expose you to security vulnerabilities. Annual refreshes are critical for optimal performance and compliance.

One example of a necessary tech refresh is Windows 10 officially losing support on October 10th, 2025. Because of this, businesses that are still utilizing Windows 10 devices need to either upgrade their OS or upgrade their device. Learn more here.

4. Incident Preparedness

Reinforce your cybersecurity measures to prepare for potential threats like ransomware attacks. All businesses today must have a solid incident response plan against ever-evolving cybersecurity threats. Adopting a proactive stance can lessen the impact of sophisticated attacks.

To enhance the effectiveness of your tech budget, consider these best practices:

5. Plan Ahead

Develop a comprehensive strategy that addresses both routine and unexpected expenses.

– Audit needs: Assess your current technology landscape, considering routine services, projects, refreshes and potential incidents.

– Survey employees: Gather insights from team members to help prioritize investments based on their experiences with existing technology.

– Quote a wish list: Create a detailed cost map for achieving annual goals, adjusting based on priorities and feasibility.

– Establish a safety net: Invest in cyber insurance to protect against potential incidents. Collaborate with an IT service provider to identify suitable policies that comply with regulations.

Need Help?

Are you ready to develop and implement an effective technology plan for your business? Download our infographic below to get started.

Contact us today at 716-373-4467 option 6 or [email protected] for expert guidance tailored to your unique needs. Together, we can ensure that your tech planning and budgeting align seamlessly with your strategic goals, positioning you for success in the coming years.

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Cyber insurance is an invaluable tool in your risk management arsenal. Think of it as one of the many weapons you have against cyberthreats. However, there’s a widespread misconception that having cyber insurance is enough. The truth is—without a comprehensive cybersecurity strategy, your insurance can offer only limited protection.

Through this blog, we’ll help you understand why cyber insurance should be seen as a safety net rather than a replacement for strong security.

Understanding the Limits of Cyber Insurance

In today’s business landscape, cyber insurance is a must. However, having insurance doesn’t guarantee a payout. Here are a few things that cyber insurance can’t help you with:

Business Interruption:

Your cyber insurance policy can never fully cover the cost of lost productivity due to a cyberattack. The payouts, in most cases, would be partial and won’t be enough for you to recover from the business interruption.

Reputational Damage:

Cyber insurance can’t help you win back customer trust. It would take a lot of work to repair your organization’s reputation.

Evolving Threats:

Cyberthreats are constantly evolving, and your insurance policy might not be able to offer a payout against new tactics.  

Social Engineering Attacks:

Cybercriminals often trick unsuspecting victims through social engineering attacks. If your business suffers losses due to a social engineering attack, like a phishing scam, you might not be covered.

Insider Threats:

Losses resulting from an internal risk are rarely covered by insurance providers. If the breach occurs because of a threat within your organization, your policy provider may not entertain the claim.

Unsure of what an insider threat is? Visit our blog here to learn more.

Nation-State Attacks:

Some rogue state nations deploy their hackers to carry out cyberattacks in other countries. Many insurance providers consider such attacks as acts of war and do not cover them.  

Six Steps to Build a strong cybersecurity posture

Implement these steps proactively to strengthen your defenses:

1. Employee training is critical for building a strong defense against cyberthreats. Hold regular sessions and bootcamps to educate your team on cybersecurity best practices.

2. Implement strong password policies and utilize a password manager.

3. Using multi-factor authentication will phenomenally improve your internal security.

4. Regularly back up your business-critical data. This will ensure you can bounce back quickly in case of a breach or a ransomware attack.

5. Keep your software and security solutions up to date. Monitor and resolve issues before hackers have an opportunity to exploit them.

6. Think of your network like your castle and do everything to protect it from hackers. Build a strong network security infrastructure, complete with firewalls, anti-virus software and threat detection systems.

Databranch can help your business implement these security measures and much more. By partnering with us, you can have peace of mind knowing that any IT issues will be addressed promptly, reducing the impact on your operations and enabling your business to run smoothly without interruption.

Build a Resilient Future For Your Business

To build a strong defense posture, you need a good cyber insurance policy and a robust cybersecurity plan. However, it can be stressful having to juggle the responsibilities of managing your business and implementing a comprehensive security strategy.

That’s where a great partner like us can offer a helping hand. We can evaluate your current IT infrastructure and create a strategy that is right for you and your unique business needs. Reach out to us today at 716-373-4467 option 6 or [email protected] to get started.

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Imagine a workplace where every employee is vigilant against cyberthreats, a place where security isn’t just a protocol but a mindset. In the era of hybrid work, achieving this vision is not just ideal — it’s a necessity.

While implementing security controls and tools is crucial, the true strength lies in empowering your workforce to prioritize security. Without their buy-in, even the most advanced defenses can be rendered ineffective.

Building a security-first culture in a hybrid work environment is a complex but achievable task. It requires a comprehensive cybersecurity strategy that not only involves but also empowers your workforce. Let’s explore how to create such a strategy.

Key Components of a Good Cybersecurity Strategy

Here are the critical components that can take your cybersecurity strategy to the next level:

Perimeter-Less Technology

In a hybrid work model, employees work from various locations and collaborate online. This means upgrading your security systems to match the demands of this environment type.

Invest in cloud-based SaaS applications that are accessible from anywhere. Ensure your applications support Zero-Trust architecture, a security concept centered on the belief that organizations should not automatically trust anything inside or outside their perimeters. Instead, they must verify anything and everything trying to connect to their systems before granting access.

Documented Policies and Procedures

Clearly document your security policies and procedures to ensure enforcement. Without documentation, staff may not understand the purpose or steps involved, leading to a lack of buy-in.

Identify critical IT policies and procedures, document them, and share them with the relevant teams and staff. Keep the files up-to-date and accessible. Review policies periodically and make changes as needed.

Our Incident Response Planning blog will walk you through the common mistakes, myths and misconceptions that can stop you from building a strong response plan. We’ll also share simple solutions that will help you safely navigate cyber challenges.

Security Awareness Training Programs

Make your employees the first line of defense against cyberattacks. Set up interactive training programs to defend against phishing, ransomware, brute-force password attacks and social engineering.

Create training videos and a comprehensive repository dedicated to security protocols and SOPs. Reinforce learning with routine tests and simulations.

Communication and Support Channels

Define communication and support channels to handle threats effectively. Ensure every staff member knows how to raise an alarm, whom to contact and what to do after reporting it.

Outline approved tools for communication and collaboration, discouraging personal apps for official use.

Friction-Free Systems and Strategies

When devising new security strategies or evaluating systems, prioritize user experience and efficiency. Ensure that security measures and policies don’t feel like extra work or employees may abandon security best practices. Align security systems and strategies with workflows for a seamless experience.

Next Steps

Building a security-first culture is challenging, especially in a hybrid work environment. To succeed, you need skilled staff, 24/7 support and specialized tools.

But you don’t have to navigate this alone.

Databranch can guide you through implementing and managing the necessary IT/cybersecurity and data security controls. Don’t wait for a breach to happen — proactively secure your business.

Fill out the form below to set up a no-obligation consultation and take the first step towards a secure future.

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Data loss disasters come in many forms, ranging from full-scale natural calamities to cyberattacks and even simple human errors. Disasters can bring businesses to a grinding halt. Apart from financial and reputational damage, failing to protect valuable data can also result in expensive lawsuits.

That’s why businesses, regardless of size, must have a backup and disaster recovery (BCDR) plan. By implementing a foolproof BCDR, you can quickly get your business back up and running should disaster strike. It will also help you comply with governmental and industry regulatory frameworks.

In this post, we’ll break down the different types of data loss disasters and outline the key BCDR components that can help you make it through a disruptive event with flying colors.

The Many Forms Data Loss Can Take

Let’s analyze the various types of data loss disasters that can hurt your business:

Natural Disasters

This covers everything from storms, hurricanes, floods, fires, tsunamis and volcano eruptions. In most cases, you can expect infrastructural damages, power failure and mechanical failures, which could then lead to data loss.

Hardware and Software Failure

Software and hardware disruption can cause data loss if you don’t have BCDR measures in place. These disruptions could be due to bugs, glitches, configuration errors, programmatic errors, component failures, or simply because the device is at its end of life or the software is outdated.

Unforeseen Circumstances

Data loss can happen due to random, unexpected scenarios. For instance, a portable hard disk held by an employee could get stolen, your server room may have a water leak because of a plumbing issue, or there could even be a pest infestation in one of your data centers.

Human Factor

Human errors are a leading cause of data loss incidents. These errors range from accidental file deletions, overwriting of existing files and naming convention errors to forgetting to save or back up data or spilling liquid on a storage device.

Cyberthreats

Your business may fall prey to malware, ransomware and virus attacks, which could leave your data and backups corrupt and irrecoverable. Additionally, data loss could be caused by malicious insiders with unauthorized access, which often goes under the radar.

Allowing your employees to have administrative privileges can leave holes in your cybersecurity, visit us here to learn more.

Key components of BCDR

Here are a few crucial things to keep in mind as you build a robust BCDR strategy:

Risk Assessment

Identify potential risks and threats that would impact business operations. Measure and quantify the risks to tackle them. 

Databranch believes that identifying the right level of security to protect your IT infrastructure begins with a comprehensive security assessment that includes vulnerability/penetration evaluation, assessment reporting and security policy creation.

You can visit our website here to request your FREE baseline security assessment.

Business Impact Analysis (BIA)

Assess the potential consequences of a disruptive event on critical business functions and prioritize them in the recovery plan.

Continuity Planning

Implement procedures to resume critical business operations during disruption, with minimal downtime. Databranch offers our BCDR solution from Datto, the leader in Total Data Protection. Not only will Datto backup all your data to the device itself, but it will also backup everything to 2 separate offsite cloud storage locations.

So, in the event that the local device is destroyed, your business can be up and running in just minutes.

Disaster Recovery Planning

Plan a well-defined business resumption plan to recover critical IT functions and data following a disruptive incident. With a recovery plan in place, many businesses may simply never recover.

Do you know the cost of downtime for your business? If not, visit our website here to view our Recovery Time Calculator.

Testing and Maintenance

Periodically test your disaster recovery and backup plans to ensure they can be recovered in a disaster. If they fail, you can work on the enhancement.

Wondering Where to Begin?

Developing and implementing a BCDR plan on your own can be daunting. However, we can help you build the right BCDR strategy for your business profile. 

Databranch has the knowledge and experience to take care of your backup and BCDR needs. Get in touch with us today at 716-373-4467 option 6, [email protected].

You can also download our infographic below to learn more about planning for potential data loss.

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Cybercriminals are always looking for new ways to bypass security defenses. That’s why it’s essential to think like a hacker and adopt measures to stay ahead of them. This is what Defense in Depth (DiD) is all about.

The National Institute of Standards and Technology (NIST) defines DiD as “The application of multiple countermeasures in a layered or stepwise manner to achieve security objectives. The methodology involves layering heterogeneous security technologies in the common attack vectors to ensure that attacks missed by one technology are caught by another.”

In simple terms, DiD is a cybersecurity approach in which multiple defensive methods are layered to protect a business. Since no individual security measure can guarantee protection against every attack, combining several layers of security can be more effective.

Before you start your DiD journey, it’s crucial to stay informed about the changing threat landscape.

9 Threats to Protect Your Business Against

While there are numerous threats that businesses like yours must be aware of, let’s look at some of the most common.

 1. Ransomware 

Ransomware is a type of malware that threatens to disclose sensitive data or blocks access to files/systems by encrypting it until the victim pays a ransom. Failure to pay on time can lead to data leaks or permanent data loss.

2. Phishing/Business Email Compromise (BEC) 

Phishing involves a hacker masquerading as a genuine person/organization primarily through emails or other channels like SMS. Malicious actors use phishing to deliver links or attachments that execute actions such as extracting login credentials or installing malware.

Business email compromise (BEC) is a scam that involves cybercriminals using compromised or impersonated email accounts to manipulate victims into transferring money or sharing sensitive information.

3. Cloud Jacking

Cloud jacking, or hijacking, entails exploiting cloud vulnerabilities to steal an account holder’s information and gain server access. With more and more companies adopting cloud solutions, IT leaders are worried about cloud jacking becoming a significant concern for years to come.

4. Insider Threats 

An insider threat originates from within a business. It may happen because of current or former employees, vendors or other business partners who have access to sensitive business data. Because it originates from the inside and may or may not be premeditated, an insider threat is hard to detect.

5. Denial-of-Service/Distributed Denial-of-Service (DoS and DDoS)

These attacks are common and easy to carry out. In a DoS or DDoS attack, hackers flood the targeted system with multiple data requests, causing it to slow down or crash.

6. Artificial Intelligence (AI) and Machine Learning (ML) Hacks

Artificial intelligence (AI) and machine learning (ML) are trending topics within the IT world for their path-breaking applications. However, AI and ML help hackers more efficiently develop an in-depth understanding of how businesses guard against cyberattacks.

7. Internet of Things (IoT) Risks and Targeted Attacks

IoT devices are a favorite target of cybercriminals because of the ease of data sharing without human intervention and inadequate legislation.

8. Web Application Attacks

Vulnerabilities within web applications permit hackers to gain direct access to databases to manipulate sensitive data. Business databases are regular targets because they contain sensitive data, including Personally Identifiable Information (PII) and banking details.

9. Deepfakes

A deepfake is a cyberthreat that uses artificial intelligence to manipulate or generate audio/video content that can deceive end users into believing something untrue.

Get Up and Running with DiD

To keep sophisticated cyberthreats at bay, you need a robust DiD strategy. Your strategy should involve layering multiple defensive methods, like firewalls, intrusion prevention and detection systems, endpoint detection and response (EDR) and more, to build a security fortress that’s hard to crack.

DiD is an undertaking that requires time and effort. That’s why collaborating with a partner like Databranch, who can implement and maintain your DiD strategy while you focus on your business, is ideal.

If you want to learn more about how DiD can help protect your business, download our free eBook “7 Elements of an Effective Defense in Depth (DiD) Security Strategy.”

You can also reach out to one of our experienced team members at 716-373-4467 option 6, or [email protected].

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Social media has significantly transformed the way we communicate and do business. However, this growing popularity also comes with potential risks that could cause harm to businesses like yours.

Unfortunately, many organizations remain unaware of these rapidly evolving challenges. In this blog, we will explore the dangers associated with social media and share practical tips to safeguard your organization’s reputation and financial stability so that you can safely reap the benefits of social media platforms.

Exploring the Risks

Social media presents several risks that you need to address, such as:

Security Breaches

Cybercriminals can exploit social media to steal sensitive information by creating fake profiles and content to trick people into sharing confidential data. Social media platforms are also vulnerable to hacking, which can have a negative impact on your business.

Reputation Damage

Negative comments from dissatisfied customers, envious competitors or even unhappy employees can quickly spread online and cause significant damage to your brand’s image within seconds.

Employee Misconduct

Certain employees may share offensive content or leak confidential information on social media, which can trigger a crisis that can be challenging for business leaders to handle.

Legal Accountability

Social media has the potential to blur the boundaries between personal and professional lives, which can, in turn, create legal liabilities for your business. If your employees make malicious remarks about competitors, clients or individuals, the public can hold you responsible for their actions. Employees may also face the consequences if their social media behavior violates the organization’s regulations.

Phishing Threats

Social media phishing scams can target your business and employees by installing malware or ransomware through seemingly authentic posts.

Fake LinkedIn Jobs

Cybercriminals often pose as recruiters on LinkedIn and post fake job listings to collect data for identity theft scams.

Securing Your Business

Taking proactive measures is essential to avoid social media risks, including:

Checking Privacy Settings

Set privacy settings to the highest level across all accounts, restricting your and your employees’ access to sensitive information. This includes removing Local Admin Privileges for employees.

Strengthening Security

Employ robust passwords and multifactor authentication (MFA) to bolster account security.

Establishing Clear Guidelines

Enforce clear social media rules for company and personal devices, customizing policies to fit your industry’s unique risks.

Educating Your Teams

Educate your team on social media risks, imparting safe practices to thwart scams and phishing attempts. Our Employee Cybersecurity Training not only offers an annual cybersecurity training, but also contains weekly micro-trainings to keep your employees up to date on real world threats.

Identifying Impersonation

Develop protocols to detect and manage fake profiles and impersonations swiftly. Remain vigilant and report any suspicious activity.

Vigilant Monitoring

Set up a system to monitor social media, promptly addressing fraudulent accounts or suspicious activity that could stain your brand image.

Act Now to Safeguard Your Business

Understanding the risks and adhering to social media best practices are crucial for businesses of all sizes. By following these guidelines, you can reduce your business’s vulnerability while reaping the rewards of social media.

For comprehensive insights into social media safety, download our eBook “From Vulnerability to Vigilance: Social Media Safety.”

Reach out to Databranch today at 716-373-4467 option 4 or [email protected] if your business is looking to increase their cybersecurity awareness.

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What is Ransomware?

Ransomware is a type of malware that encrypts data on a computer or network into an unreadable format until a sum of money, or ransom, is paid.

How does Ransomware Work?

When run, ransomware will scan the file storage disk for files to encrypt – typically documents, spreadsheets, etc. The files are encrypted with a key that only the attackers know, thus preventing your access to the files. Then, threat actors hold you files hostage, demanding a ransom to be paid for you to get your access back.

How do Hackers Sneak into an Environment?

Hackers are stealthy and can sneak in using many different approaches. Here are a few of the most popular ways that hackers gain access:

• Phishing: This is when a threat actor tricks someone into handling over their sensitive, personal information, such as a credit card or Social Security number. The victim believe they’re handing over their information to a trustworthy resource when in reality, they’re giving their information to threat actors.
• Public-Facing Vulnerabilities: Threat actors scour the internet looking for systems with known vulnerabilities. Then, they exploit them to gain access to the environment.
• Drive-By Downloads: This is when someone navigated to a malicious webpage and unknowingly downloads malicious code to their computer – all by visiting the webpage.
• Purchased Access: There’s a marketplace for everything these days, and cyberattacks are no exception. The dark web is a treasure trove of hackers for hire and deployable ransomware for download.

Ransomware Prevention

1. Keep your computer updated and patched.
2. Verify, then trust.
3. Make sure your connection to a site is secure before submitting any personal information.
4. Stay up-to-date on the latest cybersecurity education.

Ransomware Detection

Prevention is only part of the puzzle. Some attacks are virtually impossible to prevent. It all comes down to fast detection and response times, which help you combat tomorrow’s threats that may not be detectable today.

The most efficient way to detect ransomware is to leverage the tools in your security stay. 

Secure your business with a cybersecurity platform that secure your business and detects hackers. To protect our managed clients, we deploy a suite of cybersecurity tools that are backed by a 24/7 Threat Operations Center that worked to protect your assets and evict malicious actors.

Reach out to Databranch today at 716-373-4467 x115 or [email protected] to learn more.

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Cybersecurity insurance is still a pretty new concept for many SMBs. It was initially introduced in the 1990s to provide coverage for large enterprises. It covered things like data processing errors and online media.

Since that time, the policies for this type of liability coverage have changed. Today’s cyber insurance policies cover the typical costs of a data breach. Including remediating a malware infection or compromised account.

Cybersecurity insurance policies will cover the costs for things like:

• Recovering compromised data
• Repairing computer systems
• Notifying customers about a data breach
• Providing personal identity monitoring
• IT forensics to investigate the breach
• Legal expenses
• Ransomware payments

Data breach volume and costs continue to rise. 2021 set a record for the most recorded data breaches on record. And in the first quarter of 2022, breaches were up 14% over the prior year.

No one is safe. Even small businesses find they are targets. They often have more to lose than larger enterprises as well. About 60% of small businesses close down within 6 months of a cyber incident.

The increase in online danger and rising costs of a breach have led to changes in this type of insurance. The cybersecurity insurance industry is ever evolving and businesses need to keep up with these trends to ensure they can stay protected.

Here are some of the cyber liability insurance trends you need to know about.

Demand is Going Up

The average cost of a data breach is currently $4.35 million (global average). In the U.S., it’s more than double that, at $9.44 million. As these costs continue to balloon, so does the demand for cybersecurity insurance.

Companies of all types are realizing that cyber insurance is critical. It’s as important as their business liability insurance. Without that protection, they can easily go under in the case of a single data breach.

With demand increasing, look for more availability of cybersecurity insurance. This also means more policy options, which is good for those seeking coverage.

Premiums are Increasing

With the increase in cyberattacks has come an increase in insurance payouts. Insurance companies are increasing premiums to keep up. In 2021, cyber insurance premiums rose by a staggering 74%. 

The costs from lawsuits, ransomware payouts, and other remediation have driven this increase. Insurance carriers aren’t willing to lose money on cybersecurity policies. Thus, those policies are getting more expensive. This is at the same time as they are more necessary.

Certain Coverages are Being Dropped

Certain types of coverage are getting more difficult to find. For example, some insurance carriers are dropping coverage for “nation-state” attacks. These are attacks that come from a government. Many governments have ties to known hacking groups. So, a ransomware attack that hits consumers and businesses can very well be in this category.

In 2021, 21% of nation-state attacks targeted consumers, and 79% targeted enterprises. So, if you see that an insurance policy excludes these types of attacks, be very wary.

Another type of attack payout that is being dropped from some policies is ransomware. Between Q1 and Q2 of 2022, ransomware attacks increased by 24%.

Insurance carriers are tired of unsecured clients relying on them to pay the ransom, so many are excluding ransomware payouts from policies. This puts a bigger burden on organizations. They need to ensure their backup and recovery strategy is well planned.

If a cybersecurity incident occurs, does your business have a recovery plan? If not, reach out to Databranch today to get started.

It’s Harder to Qualify

Just because you want cybersecurity insurance, doesn’t mean you’ll qualify for it. Qualifications are becoming stiffer. Insurance carriers aren’t willing to take chances. Especially on companies with poor cyber hygiene.

Some of the factors that insurance carriers look at include:

• Network security
• Use of things like multi-factor authentication
• BYOD and device security policies
• Advanced threat protection
• Automated security processes
• Backup and recovery strategy
• Administrative access to systems
• Anti-phishing tactics
• Employee security training

You’ll often need to fill out a lengthy questionnaire when applying for insurance. This includes several questions about your cybersecurity situation. It’s a good idea to have your IT provider help you with this.

This can seem like a lot of work that you have to do to qualify for cyber insurance. As you review the questions, your IT partner can identify security enhancements. Just like other forms of insurance, if you take steps to reduce risk, it can often reduce your premiums.

So, it pays to do a cybersecurity review before applying for cyber insurance. You can save yourself time and money. It can also fortify your defenses against cyberattacks.

Need Help Making Sense of Cybersecurity Policies?

Cybersecurity coverage and insurance applications can be complex. If you answer wrong on a question, it can mean paying hundreds more in premiums than you should. If you’re considering cybersecurity insurance, don’t go it alone. Contact us today at 716-373-4467 x 115 or [email protected], we can explain the policy details and provide guidance.

Article used with permission from The Technology Press.

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Have you felt more secure from cyberattacks because you have a smaller business? Maybe you thought that you couldn’t possibly have anything that a hacker could want? Didn’t think they even knew about your small business.

Well, a new report by the cybersecurity firm Barracuda Networks debunks this myth. Their report analyzed millions of emails across thousands of organizations. It found that small companies have a lot to worry about when it comes to their IT security.

Barracuda Networks found something alarming. Employees at small companies saw 350% more social engineering attacks than those at larger ones. It defines a small company as one with less than 100 employees. This puts small businesses at a higher risk of falling victim to a cyberattack. We’ll explore why below.

Why Are Smaller Companies Targeted More?

There are many reasons why hackers see small businesses as low-hanging fruit and why they are becoming larger targets of hackers out to score a quick illicit buck.

Small Companies Tend to Spend Less on Cybersecurity

When you’re running a small business, it’s often a juggling act of where to prioritize your cash. You may know cybersecurity is important, but it may not be at the top of your list. So, at the end of the month, cash runs out, and it’s moved to the “next month” wish list of expenditures.

Small business leaders often don’t spend as much as they should on their IT security. They may buy an antivirus program and think that’s enough to cover them. But with the expansion of technology to the cloud, that’s just one small layer. You need several more for adequate security.

Hackers know all this and see small businesses as an easier target. They can do much less work to get a payout than they would trying to hack into an enterprise corporation.

Every Business Has “Hack-Worthy” Resources

Every business, even a 1-person shop, has data that’s worth scoring for a hacker. Credit card numbers, SSNs, tax ID numbers, and email addresses are all valuable. Cybercriminals can sell these on the Dark Web. From there, other criminals use them for identity theft.

Here are some of the data that hackers will go after:

• Customer records
• Employee records
• Bank account information
• Emails and passwords
• Payment card details

Small Businesses Can Provide Entry Into Larger Ones

If a hacker can breach the network of a small business, they can often make a larger score. Many smaller companies provide services to larger companies. This can include digital marketing, website management, accounting, and more.

Vendors are often digitally connected to certain client systems. This type of relationship can enable a multi-company breach. While hackers don’t need that connection to hack you, it is a nice bonus. They can get two companies for the work of one.

Small Business Owners Are Often Unprepared for Ransomware

Ransomware has been one of the fastest-growing cyberattacks of the last decade. So far in 2022, over 71% of surveyed organizations experienced ransomware attacks.

The percentage of victims that pay the ransom to attackers has also been increasing. Now, an average of 63% of companies pay the attacker money in hopes of getting a key to decrypt the ransomware.

Even if a hacker can’t get as much ransom from a small business as they can from a larger organization, it’s worth it. They often can breach more small companies than they can larger ones.

When companies pay the ransom, it feeds the beast and more cyber criminals join in. Criminals who are newer to ransomware attacks will often go after smaller, easier-to-breach companies.

Employees at Smaller Companies Usually Aren’t Trained in Cybersecurity

Cybersecurity Training is another thing is usually not too high on the list of priorities for a small business owner. They may be doing all they can just to keep good staff. Plus, priorities are often sales and operations.

Training employees on how to spot phishing and password best practices often isn’t done. This leaves networks vulnerable to one of the biggest dangers, human error.

In most cyberattacks, the hacker needs help from a user. It’s like the vampire needing the unsuspecting victim to invite them inside. Phishing emails are the device used to get that unsuspecting cooperation.

Phishing causes over 80% of data breaches.

A phishing email sitting in an inbox can’t usually do anything. It needs the user to either open a file attachment or click a link that will take them to a malicious site. This then launches the attack.

Teaching employees how to spot these ploys can significantly increase your cybersecurity. Security awareness training is as important as having a strong firewall or antivirus.

Need Affordable IT Security Services for Your Small Business?

Reach out today at 716-373-4467 x 115 or [email protected] to schedule a technology consultation. We offer affordable options for small companies. This includes many ways to keep you protected from cyber threats.

Article used with permission from The Technology Press.

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