In today’s digital world, protecting personal data is more important than ever, especially for high-net-worth individuals. A recent report highlights that the number of wealthy individuals is growing, with a 2.6% increase in 2024 alone. However, this rise comes with a significant downside: over 25% of these individuals or their family businesses have experienced cyberattacks.
Tamara Ashjian, vice president of cyber and tech claims at Tokio Marine HCC, shared insights on the current landscape of cyber threats. She noted that many claims they receive are not from sophisticated hacks but rather from simpler, yet devastating, security breaches. These often involve the unauthorized access of personally identifiable information or financial losses due to phishing scams.
One alarming case involved a cryptocurrency investor who lost over $30,000. The victim received a phone call from someone pretending to be from their cryptocurrency company. The scammer claimed there was a breach in the victim’s account and urged them to transfer their funds to a different wallet for safety. Given the scammer’s knowledge of personal account details, the victim was convinced and complied, only to discover the next day that the funds had vanished.
Fortunately, the investor had personal cyber insurance. After meeting the deductible, they were reimbursed for their loss, demonstrating the importance of having such coverage. Ashjian pointed out that 77% of high-net-worth individuals worry more about cyberattacks than losing their investments.
The rise in cyber threats is leading to growth in the personal insurance sector. Data shows that personal insurance premiums grew by 9.5% in 2022-2023, reaching $1.1 trillion. Tokio Marine HCC has established a cyber incident management team to assist clients during crises. This team, comprised of experts with technology backgrounds, provides support to those affected by breaches and works to recover lost funds.
Ashjian emphasized the importance of acting quickly when a potential cyber threat is detected. She advises individuals to refrain from attempting to resolve the issue themselves and to contact their insurance provider immediately. Many victims mistakenly engage with scammers, which can worsen the situation.
In conclusion, Ashjian urges everyone to take cyber threats seriously. She recommends being vigilant about online activities, especially when receiving unsolicited calls or messages. Having personal cyber insurance can make a significant difference in protecting against financial losses from cyberattacks.