A new study from Chubb finds that, despite the ever evolving and seemingly never ending frequency of cyber attacks, individuals still are largely unprepared and at risk should they or their family members be targeted.
The Chubb cyber risk survey found that although most respondents (86 percent) reported being concerned about cyber incidents, most either were underestimating or completely unaware of the common cyber threats targeting their personal information across social media sites and through internet connected devices ranging from laptops, smartphones, and voice assistants to smart refrigerators and thermostats.
For instance, just 12 percent said they were concerned about the risks associated with using public WiFi, despite being a common entry point for cyber criminals. Further, only four percent cited concern with smart home-connected devices, despite the fact that these devices can serve as gateways for criminals looking to access other personal information.
“In this day and age, anyone is susceptible to falling victim of a cyber attack,” said Fran O'Brien, division president of Chubb's North America personal risk services operations. “While it is promising that so many people are generally aware of everyday cyber risks, our study shows that their concern isn't translating into action – just 40 percent of individuals use cybersecurity software and less than one in three regularly change online passwords. Given what's at stake, individuals should be taking every precaution they can to mitigate risk.”
According to Chubb, many people have a misplaced sense of which type of personal data is most harmful if stolen. Respondents were overly concerned about certain data being compromised and demonstrated a general lack of concern when it came to data that is actually more valuable if breached.
For example, bank breaches and other financial accounts becoming compromised were the top concern (80 percent); however, most financial institutions will reimburse members for lost funds in the event of a breach. On the other hand, Social Security numbers (“SSNs”) and medical records in the wrong hands are actually more valuable than bank information.
Yet, just 60 percent of respondents said they were concerned about a family member's SSN becoming compromised and only 30 percent reported being concerned about medical record breaches.
Further, many people were not exactly sure what to be afraid of. For example, ransomware, the malware that restricts access to data until a ransom is paid, is one of the most prevalent threats in recent years. However, 50 percent of respondents could not define it, and nearly one-fifth (19 percent) had never heard of the term.
In Chubb's view, people also could be more proactive when it comes to staying cyber-safe, especially when it comes to password maintenance, one of the simplest deterrents available. Only 30 percent regularly changed their passwords, and 67 percent said they “always” or “often” used the same password for multiple online sites. More than half (54 percent) have shared one or more account passwords with someone other than an account holder, and 41 percent of respondents did not password protect their home WiFi networks.
A similar misalignment between knowledge and action existed at work: three quarters (75 percent) of respondents said their company had implemented “excellent” or “good” cyber security practices. However, Chubb's claims data shows that there has been a 930 percent increase in the number of business-related cyber insurance claims over the past 10 years – suggesting that, even as companies established better safeguards, there still were significant threat activities that continued to exploit the remaining vulnerabilities.
Employees seemed to understand the importance of strong cyber security in the workplace, with nearly all (93 percent) agreeing that they understood the intent of the cyber security measures their company had implemented. However, just 33 percent said their employers held annual company-wide trainings or updates—which are becoming increasingly necessary due to the ever-evolving nature of cyber risk.
“The economy is on a trajectory towards automation,” said Bill Stewart, division president of the global cyber risk practice for Chubb. “As that automation becomes part of businesses in every industry, the potential for more cyber incidents grows by the day. It is important for both individuals and businesses to approach cyber threats proactively. While there isn't an airtight, preventative way to safeguard against all risk, cyber insurance can indeed help fill the gaps and protect the remaining risk involved in cyber security.”
Learn more: chubb.com.