Home » Cyber Insurance—The Impact of Your Business Having Social Media
May 17, 2024
James L. Smith Insurance

Cyber Insurance—The Impact of Your Business Having Social Media

turned on gold iphone 6 with social media accounts

Social media platforms provide a convenient way to keep in touch with family members, friends, acquaintances, and, in the case of businesses, customers and prospects.

Many companies and their employees have created and continue to maintain profiles on LinkedIn, Facebook, Instagram, X (formerly known as Twitter) or TikTok.

However, a corporate or employee social media presence enhances cyber risks and exposures.

How Does Social Media Impact Cybersecurity?

While social media can seem like a safe and casual environment, your company and its employees cannot afford to let their guard down. Even when employees use their personal profiles, it’s advisable to use caution and good cybersecurity practices.

Consider the following potential cyber threats related to social media:

Social engineering—Cybercriminals can use social media to gather information about individuals and organizations. They can learn more about a company, employee roles and internal processes.

This can equip them with knowledge and manipulative opportunities; they may impersonate a trusted person or discuss topics relevant to the organization to gain an employee’s trust.

Once establishing trust, they may attempt fraudulent acts, such as requesting funds transfers or sensitive data.

Identity theft—If a perpetrator collects enough information from someone’s social media accounts, they may be able to commit identity theft. For businesses, this risk extends to key officers and could lead to severe financial and reputational consequences.

Phishing attacks—Many companies and employees are aware of the threat of phishing scams but may mistakenly believe such acts are only committed via email. Social media presents additional channels for cybercriminals.

They can create fake profiles or pages to trick users into revealing sensitive information or clicking on malicious links.

Malware distribution—Social media scammers often offer enticing downloads (e.g., free programs, entertainment, wallpapers) on their pages. However, these attachments may contain harmful malware.

If an employee falls for such a scam while using a company device, it could expose sensitive data or corrupt the entire network.

Stolen passwords—Cybercriminals monitor business pages and employee profiles to gain sensitive or personal information. Details such as nicknames, family members or hobbies can help them deduce passwords and breach accounts.

How Can Cyber Liability Insurance Help?

It is crucial for any organization that uses social media to prioritize obtaining cyber liability insurance. These policies can provide financial assistance in response to cyber incidents such as phishing scams, malware infections, and ransomware attacks.

The payouts can significantly reduce out-of-pocket expenses, including incident investigation, data restoration, and legal fees.

We’re Here to Help

At James L. Smith Insurance Agency, we’re committed to helping businesses protect their financial interests using optimal coverage solutions. Contact us today to learn more about cybersecurity or to get a tailored cyber liability insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Categories: Blog, cyber liability insurance

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