A new report by the Aite group reflects a 42% increase in identity theft in 2020, jumping in losses of over $502 billion in 2019 to over $712 billion. The pandemic caused a shift in banking behaviors and, consequently, higher trends in new account fraud and account takeover fraud. Cyber thieves are getting smarter and faster at deceiving consumers, with identity theft at the top of the most reported forms of cybercrime.
In the same report, Virginia ranked thirty-six for cyber theft by state, with over 15,600 reports to the Federal Trade Commission in 2020. But that's not the most striking data. With $101.7 million in losses, Virginia was in the top ten states for cybercrime based on complaints submitted to the Internet Crime Center. 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 are living right here in our 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. But coverage from standard home insurance would not protect you and your family from identity theft or another 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 transfer, cyber extortion and ransomware, and cyberbullying are just a few to mention.
What does cyber insurance cover?
Cyber insurance provides coverage for 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?
Projected identity theft losses are over $721 billion for 2021. Even as the pandemic wains, it's clear consumers will 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 with current statistics and predictions. 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.