What happens if a one of these interactions or partners are targeted by cybercriminals? Supply chain risk mitigation is an essential component of risk management strategies and information security programs.
The more a business adds to its online ecosystem, the more opportunity cybercriminals have. Digital risks are the unavoidable byproduct of digital life, and when unaddressed, these risks can develop quickly into supply chain threats such as Ransomware attacks, Security breaches, Malware infection, and Intellectual property theft. But the risk for Cyber Supply chains dont stop there.
With many organizations relying on outsourcing to handle at least some aspects of their day-to-day operations, third-party risk should be front of mind. Supplier fraud, or vendor fraud events are becoming increasingly difficult to identify, as fraudsters commonly adopt advanced social engineering techniques, using everything from AI-generated voicemails and Deepfake video recordings. Fraud is still on the rise since its sudden prevalence during the pandemic. Australians have lost over $270,000 to these scams so far this year, an increase of 301%.*
Finally, Data integrity throughout the supply chain is a significant area of security concern. Security measures should ensure all data states are secure. Data encryption practices are especially important between third-party integrations because hackers know that a target’s third-party vendor likely has access to their sensitive data. Earlier this month, Email marketing service Mailchimp revealed a data breach that resulted in the compromise of an internal tool to gain unauthorized access to customer accounts and stage phishing attacks.
Cyber insurance can help cover financial losses to your business, your customers and other parties following a cyber security breach. It is important to understand the PDS of the Cyber policy chosen to ensure you are adequately covered, as not all policies offer protection from all the security risks noted.
Speak to our team to find out how we can assist business owners with peace of mind and protection against cyber-attacks, such as computer hacking, ransomware and data theft. Keep in mind, what is covered and what is excluded will vary between policies, it is important to work with your Cyber Insurance Comparison Broker to ensure your Cyber policy is suitable for your needs.