Cyber Crime Costs Are Skyrocketing

Cyber crime is a growing concern, increasingly costing corporations not only hard dollars in terms of lawsuits, business disruption and customer loss, but insurance is increasingly covering less of the loss while the costs of attacks rise.

Cyber crime costs are rising while insurance payouts are decreasing

With the average cost of a cyber breach costing a corporation $5.4 million, and the average insurance payout from $954,253 to $3.5 million, “the delta between average insurance payment and breach cost going in wrong way,” Daimon Geopfert observed at the inaugural McGladrey Investment Industry Summit in Chicago. “Clients think they have cyber-insurance only to discover they are not covered” for...