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Cyber risks and liabilities
Cyber-espionage is a type of cyber-attack that involves an unauthorised user (or multiple users) accessing a victim’s sensitive information to secure economic benefits, competitive advantages or political gain. Also known as cyber-spying, the primary targets of such cyber-attacks include government entities, large corporations and other competitive organisations.
Cyber-criminals may leverage cyber-espionage in attempts to gather classified data, trade secrets or intellectual property (IP) from their victims. From there, cyber-criminals may sell this information for profit, expose it to other parties, or use it in conjunction with military operations, potentially threatening their targets’ reputations and overall stability. Often, cyber-espionage is deployed across international borders by nation-state attackers.
Over the past few years, cyber-espionage has become a rising concern, especially in certain countries. In fact, the UK’s Government Code and Cipher School (GCCS) estimates there are 34 separate nations that have professional well-funded cyber-espionage teams. It is crucial for businesses to understand cyber-espionage and know how to effectively mitigate such incidents. This article provides a detailed overview of cyber-espionage, outlines real-world examples of these cyber-attacks and offers key prevention measures that businesses can implement to safeguard their operations.
Cyber-espionage overview
Although cyber-espionage often involves nation-state attackers, it is not interchangeable with cyber-warfare. While cyber-warfare is conducted with the intention of noticeably disrupting a target’s operations or activities, the goal of cyber-espionage is for the perpetrator to remain undetected by their victim for as long as possible, therefore permitting them to gather maximum information. Yet, the information collected from cyber-espionage efforts could be used later amid acts of cyber-warfare.
Any government or business could fall victim to cyber-espionage. However, countries possessing high-income economies and advanced technological infrastructures, such as the UK, may be more attractive to cyber-criminals.
When leveraging cyber-espionage, perpetrators may attempt to access a wide range of data from their targets, including:
- Research and development activities.
- Critical organisational projects or IP (e.g. product formulas and blueprints).
- Financial information (e.g. investment opportunities, employee salaries and bonus structures).
- Sensitive stakeholder details.
- Business plans (e.g. upcoming marketing, communications or sales initiatives).
- Political strategies or military intelligence.
In any case, cyber-espionage can lead to serious consequences for impacted organisations. What’s worse is that as cyber-criminals’ tactics get more sophisticated, these incidents could become increasingly common.
Examples of Cyber-espionage:
Over the years, multiple large-scale cyber-espionage events have occurred, including the following:
- The Microsoft Internet Explorer incident.
- The Sony Pictures Entertainment (SPE) incident.
- The UK energy sector incident.
Considering these incidents and their associated ramifications, it is clear that businesses need to take action to properly protect themselves against cyber-espionage.
Cyber-espionage prevention measures
Businesses should consider implementing the following best practices to help safeguard their operations from cyber-espionage:
- Educate employees.
- Protect critical data.
- Restrict access.
- Leverage sufficient software.
- Assess supply chain exposures.
- Have a plan.
- Purchase proper coverage.
Conclusion
Ultimately, cyber-espionage is a pressing concern that businesses need to take seriously—especially as nation-state cyber-threats continue to rise. By understanding cyber-espionage and implementing adequate prevention techniques, businesses can effectively safeguard themselves against these incidents and minimise associated losses. For more information, please click here.
For more information, please contact:
David Taylor
Insurance Executive
Scrutton Bland, UK
T: 01473 267000
E: david.taylor@scruttonbland.co.uk
W: www.scruttonbland.co.uk
