As our nation faces an unprecedented increase in cyber attacks – according to Trend Micro, ransomware attacks on banks alone climbed by a staggering 1,318% last year – and more expected following the invasion of Ukraine, it is imperative that credit unions ramp up their focus on cybersecurity.
There are numerous costs associated with a cyber attack and one of the easiest ways to protect your credit union from those costs is to invest in cybersecurity insurance. Far too many businesses take a reactive approach to cybersecurity and assume they will deal with it when it happens. Every business will experience a cyber attack at some point – big or small – and for credit unions, it could have detrimental impact to your member data and can take months, and even years to recover, so the investment in cybersecurity insurance- like any other insurance – is a critical way to prepare and protect your organization.
Ransomware is the most popular type of attach. The hacker typically gains access to your network, encrypts your data and offers to sell you a key to decrypt your data. The attackers often ask for a reasonable amount so that the affected company is more likely to pay and move on. We are often called to help credit unions recover from a cyber attack. In some cases, there is no choice but to pay the ransomware in order to recover access to data. The ransom demand can be as little as a few thousand dollars, but this is typically just the beginning of recovery and ongoing associated expenses.
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