Identity theft and cybercrime are on the rise - and it would seem like no one is safe.
Whether a criminal tricks you into providing your personal information using sophisticated phishing scams, holds your data hostage with ransomware or hacks into your social accounts, your identity, safety and assets are at risk.
In May, the Canada Anti-Fraud Center cautioned Canadians to secure their personal and financial information due to increases in incidents of fraudsters using Canadians' personal information to take over social accounts, create fake email addresses and open bank, cell and credit card accounts.
A personal cyber insurance policy can help.
Personal cyber crime insurance is a newly-emerging product. DigitalShield was developed by NFP to address the sophisticated digital risks now impacting more than half of Canadians. The coverage is available for $200 a year and accessible to individuals as a stand-alone product.
Identity theft and cybercrime
Identity theft takes many forms in Canada. It can be when someone steals your credit card or takes on your identity to make significant purchases or gain access to your assets. Identity theft also includes identity fraud, for example, when someone uses your identity to apply for social benefits, use social media accounts or take out a mortgage in your name.
Although Identity theft is nothing new, the ways that cybercriminals are now gaining access to your personal information, accounts, smart homes and personal networks are constantly evolving.
Even if you feel that you have limited risks at home, nothing is protecting you when there is a data breach with a third party, like a company you do business with.
An excellent example of this is the data breach that occurred with the Government of Canada last August, where thousands of Canadians' information were hacked. Although the government alerted Canadians about the privacy breach that exposed thousands of Canadians' personal information, this did not stop scammers from using the information obtained to steal identities, in some cases using this to apply for COVID-19 benefits.
Is a personal cyber insurance policy necessary?
A May 2020 survey of Canadians indicated that more than half (57 per cent) reported being victims of cybercrime. Since last year, there have been over $7.2 million lost due to COVID-19 fraud alone.
With individuals impacted every day, a personal cyber insurance policy is essential if you want to protect yourself and your family from losses arising from cybercrimes.
Warning: Organizations that become aware of a data privacy breach will alert you, but they cannot prevent the resulting losses or damage that you may incur as a result. Purchasing a personal cyber insurance policy can provide coverage for losses that arise from a data breach.
Insurance to protect you from data privacy breaches and identity theft
If you are wondering what coverage you have or how to best protect yourself, it helps to understand which products are available. The two most common types of insurance are Identity Theft Insurance and Cyber Crime Insurance. You can purchase variations of this coverage as add-ons to home policies or as stand-alone products.
Identity Theft Insurance:Identity theft insurance is limited coverage. It is not cybercrime insurance. Often provided by home insurance companies as an add-on, it provides basic coverage for identity theft only and is usually limited to low amounts ranging from $5,000 to $35,000.
Cybercrime Insurance: Cybercrime insurance is a more robust type of coverage than identity theft because it may cover a full range of related issues that arise from a cyberattack, including identity theft, ransomware, loss or damage to reputation, cyberbullying, and of course, monies lost due to cyber crimes or data privacy breaches. Coverage ranges from $100,000 to $1,000,000.
What is the best coverage to protect you and your family from cyber crime?
We may be biased, but we believe the most comprehensive (and accessible) personal cyber insurance policy available today is our proprietary DigitalShield cyber insurance policy. This stand-alone policy is available for $200 a year. It protects you and your family members living permanently in your household and covers multiple homes you may own regardless of location, all on one policy. It protects you from eight kinds of cybercrime, including ransomware, identity theft, stolen funds, smart home breaches, wearables, connected devices and even includes coverage for cyberbullying.
Purchasing DigitalShield cyber crime Insurance can help you manage a situation, compensate you for stolen funds and help you recover your digital assets if they are corrupted due to a cyberattack. The policy provides support and helpful cyber consultation services to rest assured that if you do have a cyber incident, need help or just have some questions, you won't get stuck trying to figure it out alone.