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Too many companies ‘may not be insured for cyber attacks’, says training company

Specialist training company Inteltrain has warned companies who fail to protect themselves against cyber attacks that they may not be covered by their insurance company should they become victims.

Inteltrain, which is offering a programme to help organisations keep their digital data secure from hackers by creating ‘Cyber Stars’ in each of their departments, says that many companies ignore the risks.

Nick Atkinson, Inteltrain Commercial Manager, said: “Cyber crime costs the global economy an estimated $445 billion a year so organisations must be ready to detect and limit the damage from cyber attacks. “However, despite all the warnings, too many businesses are ignoring the risks. Many of them believe that they are covered by their standard commercial insurance policy for losses caused by a cyber attack but, in fact, vast majority of organisations are not. “If someone walks into your office and removes your safe or steals some of your stock you will be covered for the loss. However, if you are subject to a cyber attack and monies are lost or fraudulent transactions take place, the vast majority of businesses will not be covered. “There will also be no compensation for loss of revenue from down-time whilst you fix the issue. If your business is 100% based around a trading website, the implications could be catastrophic, never mind the damage to reputation.”

The warning echoes one from United States Attorney General Loretta Lynch, who recently said of cyber crime: “It is vital that industry and government continue to collaborate on this issue – perhaps more so than in any other area in which we have enforcement priorities.” And executives in eight countries – the United States, Japan, Germany, Netherlands, Switzerland, Malaysia, Singapore and Estonia – identify cyber attack as the greatest global risk to doing business, according to the WEF’s Executive Opinion Survey 2015. Executives in the United Kingdom ranked it second.

The UK Government sees insurance as an important part of for cyber security and a report published in 2015 announced a joint initiative between the Government and the insurance sector to tackle cyber risk. The report, ‘UK cyber security: the role of insurance in managing and mitigating the risk’, said that companies are recommended to stop viewing cyber crime largely as an IT issue and focus on it as a key commercial risk affecting all parts of their operations.

The report noted a significant gap in awareness about insurance, with about half of firms interviewed being unaware that insurance was available for cyber risk. Other surveys suggest that, despite the growing concern among UK companies about the threat of cyber attacks, less than 10% of UK companies had cyber insurance protection even though 52% of CEOs believed that their companies have some form of coverage in place. The report also stressed that cyber insurance should not be viewed as a replacement for good prevention. Inteltrain says that, rather than living in fear of an attack, businesses can take practical steps to prevent it happening and the Level 2 Award in Cyber Security Awareness for Business helps people working at all levels of organisations to identify risks.

The programme, being delivered by Inteltrain in partnership with cyber security specialists Intqual-Pro, is a new qualification which includes practical examples and scenarios to allow learners to train using real-life incidents. The qualification is ideal for any size of business with an IT system and is suited to those working in a range of operational and analytical roles Those successfully undertaking the Cyber Star initiative will become an officially qualified representative tasked with ensuring the implementation of cyber security policies within their area of responsibility. The training for the OFQUAL-regulated qualification is delivered by a range of former Government and HM Armed Forces cyber security specialists

Nick Atkinson said: “The important thing about our programme is that it helps companies change their culture when it comes to cyber security. Training a range of employees means that they can, in turn, train their colleagues, which has always been an effective way of helping people to learn.”

You can find out more about Inteltrain and its products at http://www.inteltrain.com/