Thanks to our highly connected digital society, we can do almost anything online. You can shop, chat, play games, attend classes and even work. The rise of innovative home technology has also helped bring convenience into our lives, but all of these conveniences have come with increased risk. According to the FBI's latest data, since the pandemic began, cybercrime has risen by over 400%. If you wonder how this impacts you and your family (or what your risks are), you aren't alone. Many people are concerned about potential fraud and cybercrime but aren't sure how to protect themselves. Is this really something you need to worry about? The answer is yes.
Computer viruses were once the main concern of individuals. There are now constantly emerging threats being orchestrated by sophisticated cybercriminals that attack your computer and your mobile and smart home devices. The number of online scams, text, email phishing schemes and other criminal activities is constantly evolving.
The good news is there is a lot that can be done to protect yourself and your family from digital risks. There are now also cyber insurance products that can provide you with support services and financial compensation if something does go wrong to get you back on track.
Here's what you need to know about cyber risk insurance for individuals and how it can protect you in our age of digital living.
Cyber risk insurance 101: who needs it and what does it cover?
Cybercrime has been a significant concern for businesses for several years. We often hear about hacks or attacks on major websites compromising personal information and putting people at risk. However, digital crime is not limited to large corporations. Individuals are targeted regularly with phishing, ransomware, and other internet or mobile device-based attempts from criminals to steal your information or gain access to your home, financials or even your location.
Even if all your systems are secure, any account you have with a corporation that gets hacked can put you at risk.
Examples of cyberattacks on individuals and households
Even computer-savvy families who keep up with basic computer safety are at risk because new scams are emerging regularly. Here are some examples of cyber risks that impact individuals and families:
Swatting
A wave of scams recently emerged where criminals targeted smart home alarm systems, audio-enabled devices, and cameras to create and report fake emergencies to authorities. These types of attacks can be for harassment, revenge, or other reasons. The emergency response teams then divert urgent services by sending them to your home for a fake emergency instead of where urgent attention is needed. Besides swatting, the criminals can also use your smart devices to monitor and track your activity and whereabouts, putting you at risk.
SIMSwapping
This type of scam is where social engineers (cybercriminals) attempt to get the SIM card in your phone reissued from your phone provider. Once they have this, they can use your phone numbers to breeze through two-factor authentication and gain access to your accounts.
Cyber bullying
Cyberbullying is a big concern and can take many forms. Bullying can come from both known and unknown individuals and impacts people of all ages.
Cyber stalking
A cyber predator can target you or a family member and track your location and/or activities, harassing you and making you a victim of cyberstalking.
Smart device hacking
Smart fridges, TVs, voice assistants, smart plugs, alarm systems and Bluetooth speakers are more interesting to hackers than you might think. These devices provide inside information about your daily habits, like when you are home or not. People can also hack speakers to listen in on your activities. One example is for parents with newborns who equip their homes with smart baby gear like baby monitors or smart speakers in the child's rooms. Whether over radio signal or Wi-Fi, these items can be hacked.
Ransomware, theft and extortion
Individuals have been the target of several types of scams demanding money to either protect their reputation or gain access to a hacked computer where the criminal has locked you out of your system. We have also seen instances where criminals hack into emails and then approach contacts to make funds transfers out of bank or investment accounts (all before the individuals even notice!)
Personal information and identity theft risks
When your personal information is hacked, it can take years to resolve the damage. People have been victims of identity theft in many forms, not only putting finances at risk but also reputation. Hackers will try to reach your contacts, open accounts in your name and may even pretend they are you online.
Phishing, vishing and smishing
These are calls, emails or text messages that seem to be coming from legitimate sources but trick you into clicking links, sending money or submitting personal information. The sophistication of many of these attempts has evolved, and it only takes one time when your guard is down to click and put your personal security, information, devices or finances at risk. For example, even though LinkedIn, criminals send messages posing as recruiters for potentially fake job opportunities tricking people into getting scammed.
TIP: Create a secondary network in your home to connect select smart devices to help protect your primary network's security and all devices (like your computer or alarm system) that are connected to it.
What is cyber risk insurance for individuals? 3 key areas of coverage
Cyber risk insurance for individuals may provide up to three categories of coverage:
- Access to dedicated cybercrime prevention experts that can help guide you in best practices and answer any questions you may have when you think that you may be at risk of a cyberattack or as a situation emerges.
- Cyber attack crisis intervention and assistance to minimize damage and get the situation under control.
- Financial compensation for monies lost, device replacement or additional services required. Depending on the level of product, you may even have access to legal services, psychological services, and relocation services (in the event of cyberbullying, cyberstalking or other events that require these kinds of safety precautions).
Not all cyber risk policies provide this level of coverage; however, there are products available that do. When looking to buy cyber insurance, those are key elements to inquire about.
Who needs cyber crime insurance?
Anyone who has a computer or device that uses a network to communicate, such as the internet, a mobile network or Wi-Fi, should consider cybercrime insurance. In addition to protecting you and your family from potential financial losses, a good cyberattack policy can also put you in touch with experts who can help guide you if you get hacked or are a victim of cybercrime. They can also set your mind at ease and help you identify whether something is a scam or not.
Getting hacked is not something that only happens when you are on public Wi-Fi. Cyber risks are present whether on public Wi-Fi or at home.
What does cyber insurance cover?
Cyber insurance can cover a variety of crimes that occur digitally. Not all products are alike, and because the policy type is emerging, there is no standard. Here is a checklist of some of the coverages you should look for when shopping for a cyber insurance policy:
- Cyberattacks
- Ransomware
- Identity theft
- Cybercrime
- Smart devices (including smart home devices) and wearables
- Cyberbullying
- Reputation coverage
- Cyberstalking
- Access to expert support services for advice, restoral, replacement, or mitigation
TIP: There are two things you want to ask when purchasing a cyber policy, first what is covered, and second how much is the limit for each coverage type. Some policies will have multiple limits and sub-limits, which can be confusing and leave you paying out of pocket in a claim.
Where can I get cyber insurance to protect my family?
Cyber crime insurance for individuals is not widely available, which is why we at NFP are proud to have developed DigitalShield, a cyber risk policy meant to provide you with the broadest range of cyberattack coverage available to individuals today.
You can also purchase cyber risk coverage from select home insurers. These types of coverages are usually add-ons and have many sub-limits or limitations on coverage. It is always a good idea to take out the checklist of coverages and ask which items are covered, limited, or excluded. You may not have the protection you think.
How much does cyber risk insurance cost?
How much a cyber insurance policy for individuals or families costs will depend on the type of coverage you buy, what kind of support services are offered and how much financial protection you want to buy. Fortunately, you can protect your home and family with a policy that is available for less than a dollar a day. For example, DigitalShield provides coverages from $100,000 to $1 million and starts as low as $200 per year.
You can get cyber risk insurance that protects your home, your family, and most of your personal digital risks, starting at the cost of about 50 cents a day.
Tips to keep safe from cyber crime and cyber attacks
- Where possible, enable two-factor authentication for online accounts and devices.
- Criminals can use stolen passwords to use your email and access digital devices. Use complex passwords for email and do not duplicate your passwords on different accounts.
- Make sure your routers or other connected devices are not using the default passwords.
- The Government of Canada Canadian Centre for Cyber Security recommends keeping your devices updated to the most recent operating systems and installing software and app updates as soon as they are available.
- Make learning about cybersecurity and safety a priority for your family, including how to recognize suspicious emails.
What would you do if you got hacked?
Let's face it. In today's world, we have no choice but to be connected one way or another. Besides the potential financial losses, identity theft, reputation damage or other personal risks from a cyberattack, getting hacked can be very scary. Not knowing what to do when an incident happens or where (or how) to get help to protect yourself can be the worst part. Cyber insurance will help.
A good cyber risk insurance policy can provide peace of mind and access to specialized guidance when in a cyber crisis. If you get trapped in a digital incident or become a victim of a crime, then cyber insurance will also help you get back on track and cut your financial and personal losses.