AI-Driven Cybercrime Driving Cybersecurity Insurance Needs

With AI-driven cyberattacks on the rise, cybersecurity insurance proves indispensable for small businesses.

HOUSTON, TX, UNITED STATES, December 26, 2024 /EINPresswire.com/ -- Leading invoice funding company Charter Capital says cybersecurity insurance has become a necessity for small businesses across the country as cybercrime continues to increase, fueled by a surge in AI-driven attacks. Additional details are available in “Cybersecurity Insurance for Small Business: Is it Worth It?” which can be accessed at charcap.com.

Recently, major firms such as NTT, Google, and McAffee have voiced concerns about increasing cyber threats. AI-driven cyberattacks are a recurring theme due to their exponential growth—a trend expected to continue throughout 2025. For instance, 40 percent of business email compromise (BEC) attacks, a specific type of phishing in which criminals trick people into sharing access to their business accounts or sending money, are now AI-generated. BEC is up 20 percent in just 12 months, Vipre reports. Criminals are targeting industries they believe have reduced protections in place. Manufacturing ranks high, receiving 25 percent of all email attacks.

“Small businesses often assume that their size makes them less desirable targets,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital. “However, criminals specifically target them for this reason, as smaller companies are less likely to invest in cybersecurity measures.”

He says that businesses should work with a cybersecurity professional to protect their systems and provide team training to help employees spot sophisticated phishing schemes. Still, he notes that these things don’t eliminate the risk entirely.
“It only takes one employee to open an email and click a link,” Brown warns. “Even your best employee can miss subtle signs and unintentionally let a hacker in.”

With a typical ransomware payout now topping $1.5 million, and even minor incidents wracking havoc on business operations and reputations, these split-second decisions people make countless times each day can have significant consequences. Because of this, he says companies would be prudent to treat cybersecurity insurance like they do liability insurance. If a business can’t afford a significant financial loss or a data breach would cause it to close its doors, cyber insurance is indispensable.

Brown notes that businesses wanting to invest in cybersecurity or that want to cover cyber liability premiums but don’t have capital can receive advances on their unpaid B2B invoices through invoice factoring. Those interested in learning more about factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Keith Mabe
Charter Capital - Factoring Made Simple
+1 713-960-1818
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