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Companies ignore e-crime insurance despite growing risk

Just over a quarter (27 percent) of UK organizations have taken out insurance against interruption of business by hackers, according to a KPMG survey.

KPMG and AKJ Associates surveyed 200 senior security decision makers from global businesses including FTSE 100 companies.

Malcolm Marshall, UK Head of Information Security at KPMG, comments: “Businesses should be acutely aware of e-crime risks after various recent high-profile cyber attacks against big organizations. But they aren’t taking out insurance for a number of reasons.

“Not many out there know or understand what insurance is available. Many are also sceptical about the effectiveness of current policies and whether insurers will actually pay out against e-crime claims.”

New technology exposes new vulnerabilities

The survey also found that companies are opening up new lines of attack as they attempt to capitalise on popular new business and consumer technologies.

Despite almost a third (29 percent) having already invested in cloud computing and two thirds (65 percent) in outsourcing, 69 percent agree that this activity presents the greatest security risk to their vital data. The majority (87 percent) also single out Software as a Service (SaaS) as increasing their vulnerability to security risks.

Other major risk-raisers identified include employees using the same devices for business and personal use (83 percent) and the use of consumer technology in the enterprise (92 percent), such as smart phones and tablets.

Marshall concludes: “While innovations like cloud and mobile computing deliver cost savings and efficiencies, security needs to be built in from the start to avoid the risks destroying the benefits.”

•Date: 7th September 2011 • Region: UK •Type: Article • Topic: ISM

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