There can be little doubt that technology has become an invaluable part of modern business. The ability to reach larger audiences in faster and more convenient ways has paid dividends – and it doesn’t show any sign of slowing yet.
However, as technology advances, the sophistication by which people can hack information and defraud a business is becoming a startling reality. In the face of constantly adapting threats, having the correct business insurance will be essential for a successful modern enterprise.
According to recent research, almost 1 in every 5 businesses in Australia falls victim of being a target to online fraud each day. Large businesses are taking measures to protect themselves and their assets more seriously than they did just 12 months ago, according to a study by Experian.
The research found that cyberattacks are growing in number across Australia, with businesses increasing their expenditure on IT security systems and still struggling to protect themselves.
Despite the vast expenditure, the report shows more than one-third (36 per cent) of Australian businesses have been attacked online by fraudsters. A startling 17 per cent of these say they are targeted through online channels at least once a day.
Jeff Price, managing director of Experian Decision Analytics, APAC said: “Fraud is a serious and growing issue for corporate Australia. Similar to other markets around the world, we can expect to see a rise in the level of fraud attacks and an expansion in the types of fraud perpetrated on Australia businesses and their customers in the coming year.
“For example, in global markets, we are seeing the growth of emerging trends like corporate account takeover fraud, which is when an organisation’s business bank accounts are exposed to a fraudster and can lead to massive losses.
“This is an issue we expect to see emerge in Australia in the near future.”
At very least, a business can benefit from the security of business interruption cover, to protect themselves against the downtime that can come from cyberattacks; however, creating a robust insurance package against online threats will be at the top of many owners’ agendas.
For more information or advice contact MGA insurance brokers.