From small businesses to large corporations, day-to-day operations and valuable employee and customer data face an ever-increasing risk of being severely affected by hackers who have their sights set on taking advantage of companies. In fact, as we enter 2025, worldwide cybercrime costs are expected to hit $10.5 trillion annually, according to Cybersecurity Ventures. As technology advances, so does the sophistication of these malicious attacks to your company’s infrastructure, resulting in business disruptions, stealing and withholding crucial data until a ransom is paid, losing business leads and drowning in legal fees – all of which come with a hefty price tag.
There is some good news: while threats are rising and attacks are becoming more creative, technology and cyber liability insurance premiums seem to be decreasing. It’s an added argument as to why you should invest in coverage to protect your business in 2025, and our Commercial Insurance advisors can help you create a robust policy tailored to your needs. Here’s a look at several cybercrime trends that may arise this year, and why you should consider investing in protection for your company.
An Uptick in Cyber Attacks Using AI
AI has helped businesses strategize, gain key insights through data and more. But its rapid progression has also given criminals a new tool. AI-powered cyberattacks, from phishing schemes to malware designed to transform on its own, will be the next big hurdle for your business’ IT or cybersecurity company to combat.
AI can create personalized content that may look human-made – or mimic someone you know – upping the chances that you’ll eventually click on a harmful link that could appear in your email inbox. It’s a prediction that’s absolutely possible, considering Stanford found that 88% of all data breaches are caused by an employee mistake.
The Cloud Becomes the Target
Just three years ago, Zippia found that 94% of companies worldwide were using cloud services and roughly 60% of its storage was utilized for corporate data. With McKinsey & Company projecting the global value of “the cloud” to reach $3 trillion, the writing is on the wall – cyberattacks targeting these spaces will become a more frequent occurrence.
From the rise of remote work to day-to-day collaboration in-office, employees are now able to easily access valuable information and your business’ infrastructure from anywhere. Increased security, monitoring and more sophisticated encryptions will play an important role in safeguarding your cloud, your company and your people from creative cyberattacks.
Resiliency in the Face of Potential Disruptions
Last year, a number of high-profile breaches affected major companies that provide third-party services to businesses. And while human error was responsible for Crowdstrike’s major outage that affected airlines, healthcare and Microsoft customers, businesses are looking for stronger assurances from third-party services. Downtime, in many cases, is money down the drain, which is why companies may move to invest in more than one cloud or a variety of services to stay functional in the face of outages and cyberattacks.
The Benefits of Cyber Protection
While your organization may be in the clear right now, no business is immune to cybercrime. That’s especially true among small and medium enterprises (SMEs), which accounted for 99% of all insurance claims. A tailored cyber liability policy can be your safety net if and when an attack arises, protecting what you’ve worked hard to build with capabilities such as:
- Data breach coverage
- Business interruption loss reimbursement
- Cyber extortion defense
- Forensic support
- Legal support
- Coverage beyond general liability policies
Another added benefit? Count on Boyd Insurance & Investments to not only work closely with you to craft your policy but be there for your business when it needs us most.
Frequently Asked Questions
Why should businesses prepare for cybercrime in 2025?
Businesses should prepare for cybercrime in 2025 because cyberattacks are becoming more advanced, especially with the rise of AI-driven threats, phishing schemes, malware, and attacks targeting cloud-based systems. These risks can lead to business disruptions, stolen data, ransom demands, lost leads, and expensive legal fees.
How can AI increase cybercrime risks for businesses?
AI can make cyberattacks more convincing by creating personalized phishing emails, fake messages, and malware that adapts over time. These attacks may appear human-made or mimic someone you know, increasing the chances of an employee clicking a harmful link or sharing sensitive information.
Why are cloud systems becoming a bigger target for cybercriminals?
Cloud systems are becoming a bigger target because many businesses rely on them to store company data, support remote work, and manage daily operations. As more valuable information moves to the cloud, cybercriminals may target these systems to access sensitive data or disrupt business operations.
How can cyber liability insurance help protect a business?
Cyber liability insurance can help protect a business by covering costs related to data breaches, business interruption, cyber extortion, forensic investigations, and legal support. It provides a financial safety net if a cyberattack affects operations, data, or customer trust.
Do small businesses need cyber protection?
Yes, small businesses need cyber protection because they are still vulnerable to cyberattacks, data breaches, ransomware, and phishing scams. Even one incident can create major financial strain, disrupt operations, and damage customer confidence.
