Scale of the problem

The scale of civil actions in Australia for cyber incidents has been increasing, reflecting the growing impact of cyber threats on businesses and individuals.

Exposure Mitigation

To mitigate the risk of potential actions from third parties as a result of security and privacy breaches, organisations should consider implementation of the following in conjunction with their wider security programme and the advice received from their IT security adviser:

• Obtain cyber insurance to cover potential legal costs and damages from cyber incidents.
• Utilise multi-factor authentication (MFA): Add an extra layer of security to your remote access points by requiring more than one form of verification to access them.
• Maintain regular backups: Ensure your backup strategy will allow you to quickly resume activities after a privacy incident to minimize downtime and disruption.
• Educate and train employees: Provide ongoing cybersecurity training to help staff recognize and respond to threats such as phishing and social engineering attacks.
• Maintain up-to-date software and security patches: Regularly update all software, including operating systems and security tools, to close known vulnerabilities and protect against emerging threats.
• Maintain up-to-date operating systems: Ensure that your operating system (e.g. Windows) is kept up to date to protect your network from new threats.

Insurance Solution

Damages and Defence Expenses which the Insured is legally obligated to pay as a direct result of a Third Party Claim arising from a Security Breach or Privacy Breach.