The cost of cyber crime

Commercial Insurance with Julie Heatley-Thomas, Senior Account Executive Prescott Jones

Most of us are getting used to attempts to defraud us personally, whether it is through scam telephone calls or dodgy e-mails and sadly one of the darker developments of the COVID pandemic is the rise in cyber related crime.  

More than 6,000 cases of COVID-related fraud and cyber-crime have been recorded by the UK’s police forces during the pandemic, with £34.5m having been stolen since March 2020.

Overall, it’s estimated that the cost of cyber-attacks to UK businesses in 2020 was an eye watering £34bn.

The increase in remote working has given criminals new opportunities but even when working practices return to a new normal, the move to greater business digitisation is constant so cyber risks are here to stay.

 How can Cyber Risks Affect Business?

Cyber risks have far reaching consequences on the way a business operates, they can include:

  • Virus or hacking attacks which stop customer transactions
  • Corruption or damage to data
  • Loss of customer or supplier critical data leading to liability to third parties including litigation/fines etc
  • Reputational damage and public relations fees to counter adverse publicity
  • Loss of revenue/profit
  • Loss of client money caused by an employee
  • Contractual penalties if performance under a contract is affected by a criminal act
  • Identity fraud rectification costs
  • Malicious data damage
  • Public Utilities and Telecommunication fraud (when charges are incurred fraudulently by unauthorised users)

Despite the increasing risks, only 14% of businesses report having any insurance cover in place. Given the climate, it is time for businesses to consider insurance protection and crucially, the ability to access support to deal with a cyber-crime as it occurs.

Contact me, or one of my colleagues at Prescott Jones for more information and a quotation.

Prescott Jones Insurance Solutions – Caswell House, 53 Walter Road, Swansea SA1 5PW

01792 459898




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