Do Nonprofits Need Cyber Insurance?

It's not easy running a nonprofit. Generally speaking, most organizations run on a razor-thin budget. This is why it's important for nonprofits to digitally defend themselves.

According to FBI Special Agent Scott Augenbaum, nonprofits and charities are frequently targeted by cybercriminals due to the fact that these organizations often rely on free software and inexpensive web hosting. Couple this with a lack of defensive expertise from staff and volunteers, and you can see why nonprofits are often victims of digital scammers.

If you own or operate a nonprofit, it's a wise decision to protect your organization with cybersecurity insurance. Finding the right coverage is easy, thanks to CyberPolicy. We are more than happy to answer your questions, connect you with reputable providers and deliver you a free quote.

Still not convinced? Keep reading to learn more about the threats facing nonprofits.

Staffing Troubles: While some nonprofits have a dedicated staff, others rely on a constant shuffle of volunteers. These folks are a godsend, but that doesn't mean this method is without its challenges. A fluctuating staff usually means sign-in credentials are passed from employee to employee, often resulting in poor password protections.

This makes it all too easy for hackers to breach accounts, steal data and corrupt accounts. Do your organization a favor and adopt a password manager that reminds users to update credentials regularly.

Reliance on Free Software & Services: Free software is great until it isn't. The positives of complimentary services are obvious: it's inexpensive and widely accessible. But it can also open you up to a litany of cyberattacks. Outdated software contains well-known security gaps, which are quickly exploited by cyber crooks. Some hackers also hide malware within online downloads.

If you choose to utilize a free program or service, ensure it is from a legitimate source before clicking the 'download' button.

Social Engineering Scams: In an effort to steal banking credentials, hackers will sometimes employ a social engineering scam. This could take the form of an email, phone call, or other communication. The point is to fool you into divulging proprietary or financial information.

Scammers will do anything they can to access this information "“ including posing as a donor, a bank, a partner, a family member, or even a co-worker. Avoid sharing anything that could compromise your organization over email or via phone.

Social Media Hacking: Nonprofits rarely enjoy large advertising budgets, which means they lean more heavily on social media to get the word out about events and announcements. But without a dedicated IT or security team, no one can monitor these accounts for suspicious activity.

Cyber pranksters love to hack social media accounts so they can post less-than-flattering messages from your brand. This could result in damages to your reputation, decreased followers, or a loss in funding.

In truth, these are only a small sample of the potential threats faced by nonprofits every day. Luckily, cybersecurity insurance cost only pennies a day and can help organizations overcome costly cyberattacks and data breaches.

Looking for cybersecurity insurance for your charitable organization? Visit CyberPolicy for your free quote today!

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