Report Reveals Phishing was Top Cyber Claim in 2022

Cyberattacks have significantly increased in frequency over the past few years, with most businesses across all industries worldwide victimized by some form of cybercrime, such as phishing. A new FBI study indicates that phishing is the most prevalent form of a cyberattack by a wide margin. Unfortunately, most organizations’ cybersecurity quality is insufficient to combat the issue.

Most Common Types of Phishing

Phishing is a significant threat to worldwide organizations. Companies should emphasize cybersecurity to combat the problem. The following are phishing scams to be aware of:

• Deceptive Phishing: the most common type of phishing, where criminals impersonate a legitimate business to steal data or credentials.
• Pharming: uses cache poisoning on the domain name system (DNS), which changes the IP address on a targeted server to redirect users to a malicious site.
• Smishing: uses text messages to transmit a malicious link.
• Spear Phishing: uses the target’s name, company, position, and other information to customize the attack.
• Vishing: targets victims by phone to obtain sensitive data or funds
• Whaling: targets company executives to steal their credentials

Effects of Phishing

Phishing manipulates the people in an organization, taking advantage of their gullibility, fear, and curiosity to trick them into divulging sensitive information. The number of phishing attacks in 2021 increased by 22% over the previous year. Despite cybersecurity efforts, these attacks can cause widespread damage, including the following:

Data Loss

When an employee clicks on a malicious email link, they effectively hand a hacker the keys to sensitive data that can disrupt an entire organization or industry. Once the criminal gains access, they may steal, corrupt, delete or ransom the information.

Financial Loss

Despite cybersecurity efforts, phishing schemes in 2021 resulted in $6.9 billion in losses. Some may have felt the financial impact directly through property theft or indirectly through the cost of providing monetary compensation or managing identity protection for impacted parties.

Reputation Damage

When a company suffers a data breach, customers lose the element of trust in the company. Despite a dependable and profitable past, a company is subject to harsh backlash and loss of customers when it falls victim to a phishing scheme.

Cybersecurity Recommendations

The volume of phishing attacks and evidence of its continuing increase has spurred many businesses to employ Insurance Management Software. The FBI has created a list of additional steps that businesses can take.

• Employ two-factor authentication or secondary channels for verification of account information.
• Watch for spelling errors in communication, particularly in hyperlinks that may alter the appearance of the actual domain name.
• Avoid entering login credentials or other personal information when prompted in an email.
• Verify email addresses and URLs to ensure they match the business or individual.
• Ensure employee computer settings enable viewing of full email extensions.
• Conduct frequent monitoring of financial accounts for irregularities.

Businesses should immediately prioritize cybersecurity to improve their defense against phishing and other cybercrimes.

About VRC Insurance Systems

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