Cybersecurity: Protect Your Wealth and Identity

In today's interconnected world, our digital footprints are expanding, and cyber risks are becoming more prevalent than ever before. As a high net worth individual, your online behaviors and those of your family members can significantly increase your exposure to cybercrime. The consequences of cyberattacks can be far-reaching, impacting personal finances, safety, business operations, and even your identity.

Between 2018 and 2022, the FBI received 3.26 million complaints about
cyberattacks, with reported losses totaling $27.6 billion. Nearly 30%
of Americans were the victim of identity theft within the past 12 months.

To safeguard your wealth and protect yourself from potential cyberthreats, it is crucial to understand the importance of personal cyber insurance. In this article, we will explore the evolving landscape of cyber risks and the steps you can take to mitigate them.

Understanding cyber risks

Cybercrime encompasses a wide range of criminal activities conducted through computers and networks. From identity theft and phishing scams to social networking fraud and emerging technologies, cyber risks are constantly evolving. As a high net worth individual, it is essential to recognize the driving factors behind your cyber risks. According to a recent study, the top considerations for individuals include the growing exposure to cyberthreats, inadequate coverage from current policies, the complexity of existing coverage, and a lack of understanding of potential risks.
 

Private client perceptions

Private clients like you are increasingly aware of the growing exposure to cyber risks. However, many find the nature of these risks and the available coverage options confusing. This confusion often acts as a barrier to effectively safeguarding against cyberthreats. Additionally, traditional cyber insurance policies have typically excluded losses due to social engineering, a form of fraud that is challenging to detect until it's too late. Fortunately, new policies have emerged that offer more comprehensive cyber risk protection, including coverage for social engineering.

Understanding social engineering

One growing area of cyber risk is social engineering. Cybercriminals employ various tactics, such as misidentifying themselves on social media or using malware, to gather information about you, your family, and your habits. They may impersonate your actions and manipulate others around you to gain access to your finances or personal information. Social engineering extends beyond social media platforms and can also involve email phishing scams, where criminals deceive victims into believing they are interacting with a trusted source. While historically not covered under cyber policies, many insurers now recognize social engineering as a form of online fraud and offer coverage for such losses.

Importance of education and consultation

To address the confusion surrounding cyber risks and protection solutions, education plays a vital role. In fact, half of the respondents in a recent survey expressed a desire to learn more about cyber risks. By working with a knowledgeable broker, such as Marsh McLennan's Cyber Risk Practice, you can gain access to coverage options and protection tips tailored toyour specific needs. Experts can provide valuable insights and guidance, including home cyber protection audits and additional advisory resources, to enhance your cybersecurity measures.

One of the key tips recommended to help reduce the risk of cybercrime is to keep all your devices secure. We recommend following these best practices from the Federal Trade Commission to keep all your devices safe from cybercrime: 

Update your software, including your security, operating system, internet browser, and apps. Your antivirus or firewall programs must be up to date to work, whether they came pre-installed, or you loaded them onto your device. Developers often provide updates to address security issues, to fix bugs, or add new features.

⁠Create and use strong passwords. That means at least 12 characters. Making a password longer is generally the easiest way to increase its strength. Consider using a passphrase of random words so that your password is more memorable but avoid using common words or phrases.

Use multi-factor authentication (MFA). Some accounts offer extra security by requiring two or more credentials to log in to your account. This is called multi-factor authentication or MFA. Multi-factor authentication makes it harder for scammers to log in to your accounts if they do get your username and password. These additional credentials fall into two categories:

• Something you have, like a passcode you get via an authentication app or a security key.
• Something you are, like a scan of your fingerprint, your retina, or your face.
  
  

Back up your data to protect it. Backing up your data means making an extra copy of all your files. That way, if something happens — say a virus, your device crashes, or you’re hacked — you still have your files. It’s important to do it once a week so you don’t lose important data, like your photos, documents, and files. If you do need to restore a backup, it will only be as current as the last time you backed up. Here are two options, and a few things to consider when choosing how to back up your files.

Save your files in the cloud. There are many cloud storage services that let you save files and data online. You may be familiar with some, like Google Drive, Evernote, Dropbox, OneDrive, or iCloud, but there are many others out there. Many of these services come with some free storage space, and you can pay for more storage. When you save your information in the cloud, you’re trusting someone else to keep that information safe. If you’re thinking about using cloud storage, find out what level of privacy or security the different services offer.

Save your files to an external storage device. A USB flash drive is an affordable option that offers a moderate amount of storage. Another option is an external hard drive. It might cost a little more than a USB drive, but it can give you more storage capacity, transfer data faster, and be more reliable. You can decide which files or folders to back up, and you may be able to schedule automatic backups.

Choose security questions only you know the answer to. Many security questions ask for answers to information available in public records or online. So, when you can, avoid questions like your zip code, mother’s maiden name, and birthplace. And avoid using questions with a limited number of responses that attackers can easily guess — like the color of your first car. You can even put in random answers to make guessing more difficult. If you do that, though, you’ll have to remember the answers you use.

⁠Be smart about Wi-Fi. Before you send personal information over your laptop or smartphone on a public wireless network in a coffee shop, library, airport, hotel, or other public place, see if your information will be protected. If you use an encrypted website, it protects only the information you send to and from that site. Use a secure wireless connection for protection.

⁠Lock your laptop. Keep financial information on your laptop only when necessary. Don’t use an automatic login feature that saves your username and password, and always log off when you’re finished. That way, if your laptop is stolen, it will be harder for a thief to get at your personal information. 

Your next steps

As a high net worth individual, protecting your wealth and identity from cyber risks may be one of your top priorities. By understanding the evolving landscape of cyberthreats and the available insurance solutions, you can mitigate potential risks and safeguard your financial well-being. Marsh McLennan's Cyber Risk Practice, along with their dedication team of experts, can provide the education, consultation, and comprehensive coverage options you need to navigate the complex world of personal cyber insurance. Don't let cybercrime cast a shadow on your digital life—take proactive steps to protect yourself and your family today.