With DPL looming, businesses in a mad rush to purchase cyber insurance policies

With more and more of their likes being targeted by sustained cyber-attacks and phishing campaigns, businesses in the UK are rushing to buy cyber insurance policies to protect themselves from financial ruin.

In their haste to purchase cyber insurance policies, businesses are probably not looking at the best ways to protect enterprise and customer data but merely complying with minimal requirements.

This revelation was made by Char van der Walt of security firm SecureData who told the BBC that businesses are at present in a 'mad panic' to purchase cyber insurance policies.

'Unfortunately this will mean that businesses of all sizes will seek out the minimum cyber-security investment laid out by insurers, government, and regulators, rather than going above and beyond to protect their own, and their customers' data,' he lamented.

Current cyber threats being faced by businesses include large-scale DDoS attacks that render servers inoperable for long periods, nibbling attacks by low profile hackers who continuously test IT systems to exploit vulnerabilities, sophisticated phishing campaigns designed to fool employees and customers into revealing sensitive data or transferring funds, and malware attacks.

Such threats, coupled with the upcoming Data Protection Law which will impose heavy fines on enterprises that fail to prevent loss of customer data in the event of cyber attacks or fail to inform relevant authorities within 72 hours of finding out about such incidents, are forcing businesses to do something urgently to ensure that they stay relevant in the aftermath of devastating cyber attacks.

However, if not planned in advance and not tailor-made as per business requirements, cyber insurance policies could do little, in the long run, to shield businesses from enterprising hackers.

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