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Cyber crime costs rise to £575m

6 May 2015

Specialists in cybersecurity from the legal, IT, insurance and criminal intelligence professions engaged with over 40 businesses recently at a seminar hosted by JLT Specialty, law firm Browne Jacobson and IT support services provider Pyranet. The seminar aimed to raise awareness of the growing risk of cyber-crime to help the UK become a cyber-secure area for commerce.

The latest estimates from The Ponemon Institute have stated that the global cost of cyber crime to businesses has risen to between 375 to 575m each year*.

These frightening statistics were revealed at the seminar by a cyber-crime specialist from the East Midlands Special Operations Unit, a crack team of experts assembled to help fight this growing threat.

Despite this rising cost, NFIB City of London Police also say that the number of cyber-crimes that actually occur is believed to be seriously under reported because businesses are more focused on prevention and protecting their reputation, rather than seeking a legal prosecution, because a court case could potentially bring yet more publicity and highlight their security breach to a wider number of people.

The UK Government is very committed to fighting this new and growing crime and has pledged to increase funding for the agencies tasked with reducing this threat from £450m in 2011 to £650m in 2015.

The aim is not necessarily to seek a prosecution, but to get businesses discussing any breaches they may have experienced in order to alert each other, share best practice and decrease future vulnerability.

Commenting, Sally Swann, senior partner, and head of the JLT Specialty Nottingham Risk Practice said, "The overall message to businesses in the East Midlands is to conduct a thorough review of their cyber related risks, take advice from experts on how to mitigate these risks, and consider appropriate insurance protection that has been tailored for their business."

Helena Wootton, partner at Browne Jacobson added, "The legal framework surrounding cyber risk is constantly evolving. It is important to have an understanding of your legal obligations and liabilities in order to protect against fines for personal data breaches which may result in significant fines and reputational damage."

Tim Johnson, partner at Browne Jacobson specialises in drafting policy wordings for insurance companies. He added "Some traditional insurance policies offer some protection, but often there are exclusions that an inexperienced buyer may be inadvertently overlooked. I would urge all businesses to use a specialist broker who understands cyber-risk."

Joe Burns from IT Support Services provider Pyranet concluded, "No industry or segment is immune, though retail and professional services are particularly at risk. Businesses should ensure they have effective IT policies in place and ensure employees are fully aware of how to protect their equipment and avoid inadvertently giving away security passwords."

If your business has been` scammed, defrauded or experienced cyber-crime it should be reported to Action Fraud, the UKs national reporting centre for fraud and internet crime.

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Lakhbir Rakar

Lakhbir Rakar

PR Manager