Preparing for cyber threats in 2022

Cyber attacks remain a very real source of concern for New Zealand businesses of all sizes. Not only are such attacks deeply disruptive and costly to a business to rectify, they may also present a business with a great deal of customer dissatisfaction.

The National Computer Emergency Response Team (CERT NZ) is the Government agency responsible for gathering data on cybercrime, and their numbers paint a worrying picture. There were 2,072 incidents responded to by CERT NZ in Q3 2021. This represents a 53% increase from Q2 2021 and equates to a direct financial loss of $3.3M*.

Cyber insurance is critical to help protect your business against exposure to cyber threats.

Historically, there has been a perception that our relative geographical isolation from the rest of the world has shielded us from attention of cyber criminals. This is no longer the case and has been demonstrated through a series of high-profile cyber attacks such as Air New Zealand (via its passenger processing system SITA), Kiwibank and NZ Police to name a few.

So what are the common threats to look out for?

One of the most common threats impacting small and medium sized businesses is ransomware attacks. This occurs when criminals deploy malicious software and target businesses to access and encrypt files (thus rendered unusable). They then demand a ransom in return for their release.

One emerging ransomware risk is known as “double extortion”, whereby criminals demand payment for a decryption key, as well as a separate payment to avoid the release of data.

Evolving situation in 2022

In response to the conflict between Russia and Ukraine and the overall global threat environment, the National Cyber Security Centre encourages New Zealanders to strengthen their cyber security readiness.

What can cyber insurance cover?

The benefits of Cyber Insurance will depend on the type of policy you take out but can include:

• Access to specialists to assist in containing the cyber attack
• Ransom costs and extortion
• Protection from your loss and third party loss
• Crisis management and legal costs
• Business interruption
• Social engineering

Our brokers are well versed in advising on cyber insurance policies to meet your business needs. Talk to your broker to see how we can help protect your business.

*CERT NZ Quarterly Highlights Q3 2021