Connected devices are growing at a staggering rate, making today's homeowners more connected than ever.
Through computers, phones, tablets entertainment systems, household appliances, and other equipment. (Almost everything talks to you nowadays.)
However, security is often overlooked.
How do thieves get in?
If a home includes a smart door, a thief with good technology can allow a hacker to install virus codes to unlock a door or change the keypads pin code.
- Televisions are vulnerable to botnets ransomware and click fraud.
- Baby monitors allowing outsiders to listen to interactions in a home.
- Default passwords can be hacked from those with webcams.
- Medical devices such as wireless heart monitors, pacemakers, and insulin dispensers can be intercepted and turned off, and data can be stolen.
Whats the solution?
It will be next to impossible to stop all cyber fraud, so one way is to transfer this risk to the insurance company for a premium. This is a very inexpensive way to remain protected! For about $60 per year most insurance companies will offer around $50,000 worth of coverage to pay for losses incurred.
- Cyber extortion
- Online fraud
- Data breach
Cyber attack policy will cover a malware attack. This will protect against the unauthorized access or use of a computing or connected home device
It pays for data and system restoration, including replacing or reinstalling software, removing malicious code, and re-configuring the computer.
What is an example of a cyber attack on a computer?
1. A person opened an email from a courier company clicking on an attachment.
2. Malware was downloaded.
3. System restoration involved reformatting the hard disk, reinstalling the operating system from scratch, reinstalling all software and applications from scratch, and restoring data and backups.
What about cyber attack on a connected home device?
1. Hackers infiltrated a smart thermostat and took over the temperature control within a home.
2. Only after the virus is removed, the thermostat can be restored to its proper working condition.
Many don't believe, but cyber extortion really happens to homes.
A personal cyber policy covers a demand for money based on a threat to damage your files. It will restore access or functionality in connection with an attack on a device’s system or data.
It provides professional assistance on how best to respond to the threat and pays the amount demanded.
Your personal cyber policy covers:
1. Fraudulent events committed through computing devices or connected home device including identity theft, unauthorized use of a bank or credit card account, forgery of checks
2. Acceptance in good faith of counterfeit currency
Will I really be reimbursed?
The coverage pays the amount fraudulently taken from the person making the claim.
1. A person received an email, which indicates that there was a ransom note on their computer
2. It shows that files have been encrypted, and a ransom of $1,000 demanded for their recovery
3. Failure to pay within the time given would increase the demand to $2,000
4. If it was still not paid, all files would be destroyed
1. A grandmother received an email from her grandson who had been in a car accident and was facing criminal charges. He needs a lawyer
2. The other driver is a foreign diplomat. He agreed to settle out of court and accept $2,000
3. The grandmother complied with the request
4. The next morning the grandmother received a request for more money. At this point, she realized she had been a victim of online fraud
Cyber attacks are not just for big multinational corporations. As a matter of fact, thieves may find it easier to get away with dealing with small companies or personal individuals because those will likely be not reported.
Many times the amount requested is small, so it fits under the certain criminal thresholds like theft over $5,000 should they get caught.
As we know, we have moved to a more cashless society in an online world, and it's only logical that thieves have to find ways to steal your money electronically.
Contact your local broker and find out more about this important coverage. You might just be glad that you did in the event of a claim.