Cyber risk rising in Asia

Cyber crime is on the rise in Asia, with small businesses particularly at risk, according to a recent Marsh report.

Around 74% of Asia Pacific businesses have experienced cyber-attacks, costing them up to $730,000 annually, according to research by data security software maker Semantec.

Moreover, reports of data or network sabotage, virus and Trojan infections, computer fraud, laptop theft and network scanning are increasing, the report said.

The top three reported losses are theft of intellectual property, customer credit card details and personally identifiable customer information, and sectors such as financial services, healthcare, retail, professional services and technology are most at risk of an attack.

Smaller businesses are increasingly being targeted owing to weaker security. Semantec said that SMEs have been the target of 40% of attacks since the beginning of 2010, while only 28% have been directed at their larger counterparts.

"Though external attacks do happen, the enemy is often within the gates, with mishandled files, unintentional security breaches and rogue employees all putting data at risk," the report said.

Firms looking to manage this risk should seek an insurance policy tailored to the individual needs of the company, according to Marsh.

Cyber-specific policies may be the best option, as traditional policies often have exclusions for incidents such as data breaches.

"The most import thing is for a firm to consider the particular risks it faces, and ensure that it takes steps to protect its information. An insurance policy can help to mitigate the risk, but educating employees on data handling is equally important," the report said.