Updated November 2024.
Cyber criminals are attacking on all fronts — at work, at home, and through any internet-connected device. You probably know at least one person who has been targeted. So, how can you survive a cyber attack? First step: Get cyber liability protection now, before an attack occurs. If you have this coverage, recovery will be much less painful.
As financial losses from hacking and fraud schemes continue to mount, insurance companies have stepped up protection options to meet the rising demand for cyber liability protection at home. When attached to homeowner insurance policies, home cyber coverage offers an affordable safety net for anyone concerned with protecting their assets and identity from online threats.
Looking at the threats
At least 3.79 million people have fallen victim to a variety of internet-based fraud schemes over the past five years, according to the 2023 Internet Crime Report from the FBI’s Internet Crime Complaint Center (IC3). This adds up to more than $37.4 billion in total financial losses. The American public registered a record number of loss complaints to the IC3, at 880,000, representing losses conservatively estimated at more than $12.5 billion. This represented a nearly 22% increase in losses compared with 2022.
Investment fraud and impersonation scams (comprising phony tech support and government impersonation) made up two of the top sources of reported internet fraud, affecting people where they live.
Investment fraud was the most costly type of cyber crime in 2023, with losses to investment scams rising by 38%, to $4.57 billion, over 2022 ($3.31 billion). People ages 30-49 years were most likely to experience this type of fraud.
Impersonation scams continued to impact people over the age of 60 the most, with more than half (58%) of financial loss experienced by seniors. While people of all ages reported losing over $1.3 billion in 2023 to scams from fraudulent internet-based call centers, those over the age of 60 made up 40% of these victims, and they lost the most money. Fraudsters impersonating tech and customer support agents or government agencies bilked seniors out of $770 million in 2023.
Cyber criminals adapt, expand attacks
Whether you are working at home, surfing the web, using email, or engaging with the world on social media, cyber thieves continue to adapt, finding new and more damaging ways to hit at home.
One of the most common types of cybercrime, according to the IC3 report, is extortion. And ransomware is one way for criminals to pull it off. Infection with ransomware happens when people fall for email phishing campaigns; or when hackers are successfully able to access servers and computers through flaws in a remote desktop protocol (RDP) or virtual private network (VPN); or when cyber criminals take advantage of software weaknesses. The hacker takes over your device, locking it down or encrypting your data, and holds it hostage until you pay the ransom.
Two other major sources of cybercrime include personal data breach and identity theft. These can result from direct “brute force” hacking attacks, phishing schemes, fraudulent tech-support emails and phone calls, and many other scams. We all know someone who has been victimized. Perhaps it was a relative, or a neighbor, or even yourself.
Home cyber liability protection widens safety net
Many insurance carriers offer an option to add personal cyber liability coverage to homeowner or rental insurance policies. Coverages are available up to $100,000. Protection extends to computers, cellphones and other connected devices. Cyber liability protection now covers many types of cyberattack and online fraud, including those listed here.
Extortion — Get expert counsel on how to respond to extortion threats from ransomware and other attacks, and payments for devices, data, or systems held hostage.
Data Breach — Rebuild from a data breach, including costs to restore systems and recover data from malware and other cyberattacks on computers and connected devices such as cellphones, tablets, security systems, smart appliances, and Wi-Fi devices.
Identity Theft — Recover from identity theft and other online fraud by taking advantage of a help line, credit report monitoring, protection from unauthorized use of credit cards or account numbers, and assistance in restoring your identity.
Everyone is at risk for a cyberattack. Especially if you are over 60. Know that you will be targeted at some point (if you haven’t been already). Talk to your Bradish agent to find the best home cyber liability protection plan for your family’s needs. As online threats continue to intensify, home cyber liability protection offers reassurance that you will recover.
by Kris A. Mainellis
