KSL INVESTIGATES

Personal cyber insurance emerges as a new online safeguard, but do you need it?

Feb 9, 2022, 10:00 PM | Updated: Jun 19, 2022, 10:01 pm

SALT LAKE CITY—We use the internet all the time to buy things and pay bills, and we routinely share our identities and information with online companies and services. The problem is, this gives cybercrooks plenty of ways to steal our data and our money. Just as your home insurance protects your home, now personal cyber insurance can cover you and your family against online threats. But is it worth it?

Over the years, KSL has spoken to scores of Utahns who have had their lives and finances turned upside down by cybercriminals. The thing is, cyberattacks of all types just keep growing in frequency and severity said supervisory special agent Casey Harrington of the FBI’s Cyber Squad in Salt Lake.

“Whether it’s ransomware, or online scams, business email compromise, sim swaps, tech scams, we see it all almost every single day,” Harrington said.

FBI Supervisory Special Agent Casey Harrington explains how the frequency and severity of cyberattacks hitting Utahns continues to grow.

Over $47.1 million were lost by over 4,926 Utahns to cybercriminals in 2020, according to the FBI’s most recent report. That adds up to an average of $9,564 per crime, nearly three times higher than 2015’s average of $3,339.

“Again, that’s dependent on people reporting it to us, that number is much, much higher,” explained Harrington.

Tools like strong passwords, backing up data, constant software updates are traditional guards. But here is a new one: personal cyber insurance to offset the cost of a cyberattack.

“It can be a cyberattack or a cyber extortion,” said insurance agent Olga Serrato of State Farm. She sells the coverage as an add-on to a homeowner’s or renter’s policy.

“If someone is threatening you with demanding money, to deny access to your system or to distribute information, we also protect you against those,” said Serrato.

Several insurers offer cyber insurance now and while no two policies are alike, generally:

Someone hacks into your bank account and steals your money? You are covered. A bad guy steals your online identity to buy stuff or defraud others? You are covered. Your info ends up on the dark web after a big data breach? Expenses to restore your identity and credit are covered. A hacker holds your files for ransom or threatens to make your private stuff public? Your insurer sends in a specialist or if worse comes to worst, could foot the ransom.

“We all are subject to these attacks,” said Serrato.

Insurance agent Olga Serrato explains to KSL’s Matt Gephardt how the personal cyber insurance she sells can help cover threats such as ransomware, cyber extortion and identity theft.

Does that mean we all need personal cyber insurance?

Some things to consider: We have seen coverage limits of $25,000, $50,000, $100,000 on up to $1,000,000. Also, there is usually a $500 or $1,000 deductible per attack. And premiums can start as low as $25 a year, up to $1,600 and higher.

So, in the end, cyber insurance is like any other insurance. It is a personal choice about peace of mind.

But personal cyber insurance is not a replacement for any security measure we must take to protect our online selves.

“There’s so many different ones (schemes) out there from business emails compromises and these tech scams and romance scams,” said special agent Harrington. “People need to be aware of what they’re clicking on and who they’re communicating with online.”

KSL 5 TV Live

KSL Investigates

Matt Gephardt meeting with Denis Hawkins after a rental car company after they ignored his calls fo...

Matt Gephardt

Get Gephardt helps Spanish Fork man clear up insurance claim for rental car damage

Get Gephardt clears up an international rental car insurance standstill.

20 hours ago

FILE - An airplane flies through the clouds in Salt Lake City. (Jeffrey D. Allred / Deseret News)...

Matt Gephardt

How recent airline incidents are changing habits and impacting airfare costs

After a year of headlines lamenting runway incursions and midair close calls, the wheels may be coming off for the airline industry. Literally.

2 days ago

Josh Kochevar died unexpectedly last month. The unhappy task of writing the obituary fell to his ol...

Matt Gephardt and Sloan Schrage

How scammers are using counterfeit obituaries to profit off deaths of loved ones

You have probably heard of stories where an empty home was burglarized while everyone was attending a funeral service. Or stories about thieves breaking into cars parked at a funeral. Now, artificial intelligence has opened a new way for crooks to capitalize on grief.

3 days ago

A person scanning a recently generated QR code....

Matt Gephardt and Sloan Schrage, KSL TV

How to protect yourself from fake QR codes scammers use to steal money and info

Here's what you need to know about QR codes and protecting yourself from scammers.

7 days ago

General view outside of the Delta Center ahead of the NCAA Men's Basketball Tournament on March 19,...

Matt Gephardt

NCAA Tournament basketball is coming to Salt Lake and so are the ticket scams

As March Madness excitement ramps up, so do the odds of buying pricey tickets to tournament games that turn out to be fakes or non-existent.

8 days ago

About a year ago, the KSL Investigators went under the hood of some "connected" smart cars to see w...

Matt Gephardt

Internet-connected cars may share driver info with insurance companies, what it means for premiums

some internet-connected vehicles are sharing our driving habits with our insurance companies

9 days ago

Sponsored Articles

Women hold card for scanning key card to access Photocopier Security system concept...

Les Olson

Why Printer Security Should Be Top of Mind for Your Business

Connected printers have vulnerable endpoints that are an easy target for cyber thieves. Protect your business with these tips.

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Personal cyber insurance emerges as a new online safeguard, but do you need it?