Companies Looking to Insurance to Prevent Cyber Attacks

As the nation is starting to treat cyber security with more
precedence, companies are starting to take notice of their fraud prevention
solutions. One of the growing trends in cyber security is cyberinsurance.
Reports state that over the past year cyberinsurance sales have increased 33%.
Surprisingly, these purchases are spread over various industries including
education, legal, personal services, business, and more. Financial institutions
have jumped to a 32% increase while professional, business, legal, and
accounting increased 76% during 2012. Due to awareness and growing online
risks, some companies are finally starting to look at their online security the
same they look at more tangible threats. Just like any other insurance policy,
cyberinsurance can range in price and coverage depending on the size of the
company and their needs. These services mirror other insurance policies in the
sense that they aim to help companies if they should suffer damage from a cyber

Some of these cyberinsurance policies also state that they
aim to prevent
cyber attacks
. While technology per each company most likely varies, its
hard to say if cyberinsurance is really a solution for preventing fraud. While
there is no doubting that insurance will help cover a company if losses occur,
it may be harder to prove that these policies can actually help in preventing
these attacks. One of the best ways to prevent fraud is to detect it. Often
times companies look into fraud prevention measures that dont truly detect
fraud in early enough stages to stop it. Companies are then left to pick up the pieces
after the damage is already done. By implementing identity
verification and authentication
either into a cyberinsurance policy or just
alone, these services can help truly detect fraud. Knowing who is accessing
your site or information can help find impersonators who may be either trying
to steal identities or access information that is not truly theirs. Now that
companies are looking into ways to protect their assets against online
, they may find that implementing identity verification and
authentication may be the smarter solution to meet their Internet security

[Contributed by EVS Marketing]

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