The digital transformation has accelerated innovation and brought new opportunities for companies. However, it has also opened doors to a scenario of increasingly sophisticated cyber threats. Artificial intelligence (AI), once considered an optimization tool, has become a risk factor in the digital environment.
Nowadays, cyber risk is a threat to every business. Hackers are increasingly using artificial intelligence to perfect their computer attacks, making them faster, more effective and more difficult to detect. Cyber Risk Insurance is, therefore, a pillar in companies’ protection strategies, helping to mitigate possible financial and operational impacts resulting from cyber incidents.
In this article, we’ll explain what the main emerging risks are and how cyber insurance can be your main ally.
Artificial Intelligence: a threat or an ally?
Artificial intelligence is currently a double-edged sword in digital security: it can both protect companies through effective detection systems and be used by criminals to create even more elaborate attacks. In fact, more advanced algorithms are now being used to manipulate victims and further circumvent protection systems.
Some of the most worrying risks for companies include:
- Phishing: AI is capable of creating highly personalized fake emails which, by imitating a company’s language and behavior, lead employees to click on malicious links;
- Ransomware: malicious programs that block corporate systems and demand ransoms are more efficient;
- Automated social engineering: based on public data and social media, AI is able to create very realistic fake profiles to manipulate employees and gain undue access to corporate systems;
- Identity forgery: AI-generated videos and audios can be used to fool employees, impersonating company directors and leading to fraudulent money transfers.
Faced with the growing sophistication of cyber threats, it is not enough to rely on traditional firewalls and antivirus. The role of Cyber Risk Insurance is central to the protection of companies.
Cyber Risk Insurance: the answer to new digital threats
No company is immune to cyber attacks. The impact of an incident goes beyond the loss of data, and can have the consequences of paralyzing operations, damaging reputations, fines and large compensation payments.
So, Cyber Risk Insurance is an asset in mitigating these consequences, as it includes the following features, among others:
- Coverage for financial damages in the event that an attack compromises the company’s systems and causes financial losses;
- Compensation for losses resulting from the interruption of business activity;
- Coverage for civil liability, if customer or partner data is exposed and causes the company to be sued;
- Protection against third-party claims;
- Incident response assistance, which includes specialized technical support to contain attacks, restore data and minimize damage.
Cyber Risk Insurance is indispensable for companies that deal with large volumes of data and sensitive information. However, it is also important for companies to adopt proactive internal measures to prevent attacks, such as employee training, ongoing assessments and monitoring, reinforced authentication and frequent backups. Besides, the use of artificial intelligence in cyber defense strengthens an organization’s security and makes it possible to detect suspicious patterns in real time in order to block threats before they cause damage.
Cyber Risk Insurance and Artificial Intelligence: new challenges, new solutions
Artificial intelligence is redefining the cybersecurity paradigm, bringing both benefits and vulnerabilities. For companies, cyber protection is no longer an option – it’s a necessity.
Cyber Risk Insurance not only covers the financial damage of an attack, but also offers specialized assistance to respond to incidents, helping companies to recover more easily. Consequently, it reduces the impact of cyber threats.
If your company doesn’t yet have Cyber Risk Insurance, now is the time to act. Threats are constantly evolving – don’t wait to be the next victim. Get in touch with Famasegur and find out about the solutions we have available.
