There has been a lot of stories in the news lately about digital security and data privacy. When it comes to the security of our digital information, there is a lot at stake. Protecting your identity, financial information, and personal data from theft is incredibly important and can save you from troubles down the road.

Unfortunately, the instances of cybercrime are on the rise. In 2015, nearly $15 billion was lost because and cybercrime. This kind of digital crime has become more popular than property crime in the United States.

Cybercrime’s impacts

Cybercrime has an incredible reach due to the number of technological devices we have at our fingertips. From our phones to computers, tablets to in-car digital systems, we add more and more personal information to our devices every day. These devices then become gold mines for people who want to steal your identity, financial information, and much more.

In addition to hacking into your personal information, cyber criminals can use your identity to send back transfers, extort people for money, and damage your reputation without your knowledge. Right now, this sort of damage is hard to protect against if you aren’t prepared for it.

Cybercrime can have far-reaching impacts. A hacker may not gain much financially, but it causes you a lot of trouble to replace credit cards, make sure your social security number isn’t being used by someone else, and change all your online passwords.

Keep Yourself Safe

There are different ways that you can keep yourself safe online. Make sure to change your passwords regularly and make them strong; a random string of letters, numbers, and symbols is hard to remember, but even harder to hack. If you do need to write your passwords down, make sure they are in a location where only you can access them.

Use encryption data to protect your email and documents you may be storing in the cloud or in another online server. These online locations aren’t immune to breaches, so make sure you have an offline backup of all your important information.

As tempting as it is, limit the personal information you share on social media. Don’t add people you don’t know to sites like Facebook. Remember that a person who hacks into just one of your social accounts can grab enough information to infiltrate further and discover more about you. This can include your location, where you work, your birthday, or your social security number.

Cybercrime and homeowner’s insurance

Homeowner’s insurance hasn’t typically offered protections against most kinds of digital theft that could happen to you. Homeowner’s insurance has offered people a safety net in case they have their identity stolen. In traditional cases, this means refunding fraudulent charges and replacing things like credit cards that may have been compromised.

Cybercrime has added a new level to identity theft. If someone gets your data and pretends to be you online, your reputation could be damaged in addition to your information being spread online. Hackers have gotten around traditional homeowner’s insurance policies because of the nature of their cybercrime.

However, the homeowner’s insurance industry is changing to meet these new needs. A new cyber family policy may begin to be added to some homeowner’s insurance policies to protect your digital assets as well as other aspects of your online life.

One insurance policy can’t keep cybercrime from happening, but it can help you if your digital information should be breached in any way. Even if your reputation is being damaged online, a cyber insurance policy associated with your homeowner’s insurance could help you discover what information has been leaked, where it has gone, and what you can do to prevent it from happening again.

Time will tell how other parts of the insurance industry adjust to the increase in cybercrime.


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