Cyber Threats During the Holiday Season: Are You Covered?

During the holiday shopping season, online transaction volumes rise sharply, creating more opportunities for cybercriminals to exploit system vulnerabilities. 

Increased cyber risks during peak shopping times

According to a SecurityBrief report, ransomware attacks increased by approximately 30% during the holiday season in recent years, creating more opportunities for cybercriminals. Payment systems face additional strain, while staff often work extended hours, potentially creating security gaps. 

Businesses experience higher rates of cyber incidents during these periods. Phishing attempts targeting financial data increase significantly. Ransomware attacks often target retailers and service providers when disruption causes maximum impact. Fraudulent transaction attempts also peak as criminals exploit busy periods when verification processes may be rushed. 

How to mitigate these risks with insurance

Different sectors experience varying levels and types of exposure: 

• Retail operations may focus on stock protection and brand presentation assets. 

• Manufacturing sites often rely on equipment and materials with specific lead times. 

• Service-based businesses typically depend on digital systems and specialised equipment.  

Features that may appear in cover

Cyber insurance policies may provide financial protection against various digital threats.  Coverage typically may include business interruption costs, data recovery expenses, or legal fees, but exact features vary depending on the insurer, underwriting criteria, and policy terms. 

These may cover cyber extortion payments, forensic investigation costs, and customer notification expenses. Some policies also include public relations support to manage reputation damage following a cyber incident. 

However, cyber insurance works alongside, not instead of, robust security measures. Insurers typically require businesses to maintain specific security protocols as policy conditions. 

Want to explore insurance options that reflect your business? Contact us to speak with one of our expert brokers.     

Disclaimer:

The information provided is intended for general informational purposes only and does not constitute professional advice. While every effort has been made to ensure the accuracy and completeness of the information contained herein, Add Insure makes no guarantees or warranties regarding its applicability to your specific situation.  

Insurance needs and requirements can vary significantly depending on individual circumstances, local regulations, and business operations. We recommend consulting with a qualified insurance professional or broker to obtain advice tailored to your needs and circumstances.  

Add Insure shall not be held liable for any errors or omissions in this blog, or for any actions taken based on the information provided. For the most current and accurate guidance, please contact an insurance professional.