A leading organisation is of insurers and underwriters are predicting that the recession and continued job losses will see an increase in white collar extortion against businesses. The organisation also found that many businesses are not insured against cyber crimes which could result in data or business loss.

“According to a DTI Information Security Breaches Survey, a third of UK businesses think general small business insurance provides full cover for damage to the business arising from data loss,” commented a spokesperon, “but the reality is quite different, with very few businesses likely to be insured against the result of cyber attacks on its most crucial management and business tool – corporate and customer information, most of which is today held on corporate IT systems.

“For public company directors, this is in fact in breach of their duties under the Turnbull Report, which requires them to identify, manage and take an informed opinion on the transfer of risks for the business.”

While installing the latest firewall and virus protection programs can help, the fact is that many cyber attacks are carried out by hackers who enjoy the challenge of breaking into systems. There are an ever increasing number of computer viruses which continue to cause damage to businesses. A spokesperson for the organisation went onto say:

“The economic downturn has resulted in people of all levels and responsibilities losing their jobs, and those with a detailed knowledge of their former employers’ IT and operating systems may well present a real potential threat, and turn to extortion as a way of taking revenge on their former employer, and of making some money at the same time.

“Malicious erasure of data from client files or tampering of individual internet websites is a real risk and will cost a business dear in both clerical and management time, as well as through lost revenue and reputation.”

As a result of the potential increase in cyber terrorism businesses are being advised to thoroughly review risk management procedures and insurance programmes to ensure they have the correct cover in place.