The Federal Trade Commission reports a 41.5% increase in fraud in 2022 of nearly $8.8 billion, more than 30 percent over the previous year. Cyberthieves are getting smarter and faster at deceiving consumers, with identity theft at the top of the most reported forms of cybercrime. The top five most commonly reported imposter and online shopping scams used prizes, sweepstakes, lotteries, investment-related reports, and business and job opportunities to attract victims.
In 2022, Virginia had 11,882 cybercrime victims who reported crimes to the FBI, resulting in a total loss of $205.4 million. Phishing was the most reported type of cybercrime from 2020 to 2022, and Virginia had the 12th most cybercrime victims in the nation in that time period. Just as you protect your assets from the economic fallout of a home fire, the need for financial protection in a global online environment is a stark reality of the times we live here in the commonwealth.
What is cyber insurance?
If your home caught on fire, your homeowners insurance would step in and cover the damage to repair and restore your home. Standard home insurance would not protect you and your family from identity theft or cybercrime. Cyber insurance would. Considering the staggering amount of time and financial resources it can take to recover your identity and resolve a cybercrime, it makes sense to have a backup plan.
Cyber insurance is a separate coverage from your home or car insurance. It protects you and your family from various forms of cybercrime. Credit card fraud, forgery, fraudulent wire transfers, cyber extortion, and ransomware, and cyberbullying are just a few to mention.
What does cyber insurance cover?
Cyber insurance covers related expenses when your family experiences identity theft and more. Here are a few examples:
- Data recovery
- System recovery
- Financial loss
- Ransom monies and associated costs
- Cyberbullying counseling
- Childcare or other caregiver expenses
- Temporary relocation
- Resulting travel expenses
- Lost wages related to the incident
- Credit monitoring
- Legal expenses
Is cyber insurance right for you?
As we continue to rely on computer networks and digital data for daily operations and to store important personal and financial data, cyber insurance should be a serious consideration for any consumer's financial portfolio. Here at NNINS, we offer a cyber protection product with our homeowners insurance for a minimal fee. Talk to your local insurance agent, and always be sure to utilize real-time identity validation and authentication best practices.
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THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.
