UNDERSTANDING THE RISKS OF CYBER CRIME

Technology has changed the way we bank. Today there are plenty of ways to do our banking easier than ever which is great for customers and organizations but it also presents new ways for cyber criminals to try stealing important data or money. Financial businesses are prime targets but as banks are strengthening and securing their systems, making it more difficult to breach in, there is an increased interest in targeting the customers.

“Governments, industries and companies all need to work closer together to tackle increasing cyber attacks. While recent government cyber-initiatives in the US and UK are welcome, there needs to be better coordination between governments and moves towards more consistent and uniform global regulation if cyber attackers are to be caught and punished. Similarly, there needs to be greater co-operation and sharing of information between (and within) industries and among companies to combat cyber risk effectively.” (Lloyd’s 360°Digital Risk Report)

It is impossible to completely eliminate cyber threats, so it’s essential to ensure cyber security and protection against them to keep the online economy running without major disruptions in business innovation and growth. Understanding and acknowledging the risks of cyber crime is crucial.

What are the risks of cyber attacks according to Lloyd’s 360°Digital Risk Report?

• Operational risks – loss of service to customers, loss of data, loss of the internal network, or interruption to supply chains.
• Financial risks – result from operational risks, fraud and theft, loss of customers and sales
• Intellectual property risks – the loss of intellectual property and business plans which can result in the loss of competitive position in the market
• Legal and regulatory risks
• Reputation risks –  loss of confidence and trust in the company, damage on the company’s brand, image and reputation.

In today’s digital world we are more dependent on IT and the internet than ever before and this trend is most likely to be continued in the future. Technology makes accessibility and connectivity rather easy these days which increased the exposure to digital risks and cyber crime. This gives enough reason to be prepared and more aware, make the necessary precautions to reduce the risks or even prevent these attacks.