Guiding consumers since 2009

Cyber insurance now available in SA

By Jessica Anne Wood

Insurance is an important thing to have to cover the many assets you may own, from your house or car, to smaller items, and life and health insurance. However, as we make use of technology, such as laptops and iPads, to store our personal information and work it has become vital to protect digital assets too.

Phishield has stepped up to provide insurance to protect digital information to the consumer. The insurance offers protection against fraudulent online purchases, card fraud, phishing scams, as well as fraudulent EFT funds transfers and in-app purchases.

The insurance

Cover from Phishield ranges from R199 a year for R5, 000 cover, to R799 a year for R100, 000 cover. There are six options available, and these are available for purchase through the Phishield website. The options are as follows:

Insurance package

Cost per year

Amount of cover

LITE

R199

R5,000

STANDARD

R249

R10,000

ADVANCED

R399

R25,000

PROFESSIONAL

R599

R50,000

PLATINUM

R699

R75,000

EXECUTIVE

R799

R100,000

Source: Phishield website

With so many options to choose from, how do you know which one you need? Sarel Lamprecht, managing director of Phishield, offered this advice: “The level of cover will vary and will be dependent on a number of factors including financial exposure (credit card limits, account balances etc.), digital footprint and online buying habits.”

According to Phishield, the warranty on the insurance is valid for 12 months from the date of purchase. In addition, there is a 30 day, 100% no-risk money back guarantee. The warranty “is a complete loss of funds insurance product that covers against a loss of funds incurred due to unauthorised transactions such as phishing attacks, identity theft, online purchases, card fraud and in-app purchases,” revealed Lamprecht.

When it comes to the claims process, Lamprecht noted that policyholders can lodge a claim through the claims centre via email or telephone, or alternatively through the online claims portal.

The threat facing consumers

There are several reasons why a person might opt for cyber insurance. Lamprecht stated: “People wrongly believe that the banks or financial institutions are obliged to reimburse their customers for any fraudulent activities that may occur on their accounts, but in a large number of cases the banks will only reimburse part of the claim or will reject the claim completely.”

However, there are a number of criteria that must be met in order for the cover to apply. Lamprecht explained: “Policy holders must be 18 years of age or older. The account at the financial institution or bank must be held in the same name as that of the policy holder; and policy holders must have an active internet security product running on the transacting device.”

There are a number of cyber-threats facing consumers. Phishield explained that these include the likes of phishing and spear-phishing emails, malicious attachments and web links, as well as ransomware.

“Phishing emails attempt to obtain sensitive information such as usernames, passwords, and credit card details by posing as a legitimate request from a trusted entity such as a bank. Spear phishing is a more targeted variation on this, and these emails look like the genuine article from people and businesses the targeted individuals deal with. Whaling is a highly targeted form of spear phishing. Here, the criminal sends an e-mail that appears to be from an individual or business that the target knows (often the CEO or CFO) to get access to data or transfer money to them,” elaborated Phishield.

The company added: “Ransomware uses malware that prevents or limits users from accessing their systems, forcing them to pay a ransom through certain online payment methods. Only once they have done this will they be able to access their systems or get their private data back.”

In addition to providing the above personal cyber insurance products, Phishield also offers products for businesses. A company can apply for up to R1.5 million in cover.

 

 Handy tip: Need household or car insurance? You can apply for both on Justmoney, along with a host of other insurance products, click here for more.

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