rapid climb in online crime

CYber CrIme IS ON tHe rISe AmONG SmALL AND meDIUm AUStrALIAN bUSINeSSeS, pArtICULArLY AS SO mANY AUStrALIANS CONtINUe WOrKING FrOm HOme. WItH mANY IN tHe eLeCtrOteCHNOLOGY SeCtOr WOrKING FrOm permANeNt HOme OFFICeS, eLeCtrICAL CONtrACtOrS rANK HIGH ON tHe LISt OF tArGetS FOr CYberCrIme SYNDICAteS. DAtA GOVerNANCe AND SeCUrItY IS AN ImpOrtANt ISSUe FOr CONtrACtOrS, AND tHe COSt OF A DAtA breACH COmprOmISING YOUr CUStOmerS’ perSONAL INFOrmAtION COULD HAVe A mAJOr ImpACt ON YOUr bUSINeSS.

the 2020-21 Australian Cyber Security Centre (ACSC) Annual Cyber threat report claims that more than 67,500 cybercrimes were reported during this period, with losses totalling over $33 billion. the report states the average loss per successful email compromise is now more than $50,600.

NeCA Group It manager, Alex Kim, said “Unfortunately the weakest link in cybersecurity is often the human factor. A simple oversight or lapse in concentration can have devastating consequences, often resulting in reputational and financial losses. A good strategy is to remain vigilant and sceptical of all unexpected emails, text messages, and attachments. When in doubt, don’t click.”

Another basic, yet often overlooked element of protecting yourself against an attack is neglecting to update your computer systems. “Hackers are constantly looking to discover new vulnerabilities and updates are one of the greatest defences we have in preventing the infiltration of your computer systems.” Hardening passwords is another crucial aspect of It security. Using a passphrase, a sentence-like string of words instead of a password is recommended by ACSC. It’s generally accepted that a complex password is more secure, in reality, password length, rather than character variety, is the critical component of a password’s strength. Using passphrases is far more secure than passwords—even if they feature no special characters at all, since a longer password is harder to crack if data is stolen.

You can quickly check if your password has been stolen by entering your email address in the ‘Have I been pwned’ data breach database (haveibeenpwned.com).

Financial details are another prime target for hackers, with data often used to transfer funds or on-sold. Security around payment systems is usually managed by the payment partner, and it is recommended that contractors never store customers’ credit card information in any way. these measures serve not only to protect customers’ data, but also to protect you should any losses occur as a result of such a data breach.

Despite the rising instances of cybercrime on Australian businesses, Alex Kim has the following tips that you can easily implement to help safeguard against an attack: ½ perform regular operating system security updates; ½ harden your passwords by using unpredictable passphrases instead; ½ use multi-Factor Authentication where possible; ½ do not click on suspicious links or open emails which were not expected, or do not appear to be from a recognised sender; ½ do not give clients or other non-employees access to your computer or mobile device; ½ limit access to sensitive data to only those who need to view it; and ½ do not store records of client’s banking and credit card information.

WHAT IS CYBER INSURANCE?

AND WHY YOU SHOULD ALREADY HAVE IT

What is a threat?

Cyber exposures are an endemic threat to all business. You may have heard of some high-profile cases affecting large businesses; however, in recent years cyber criminals have been targeting small to medium businesses including NeCA members. You still take out home and contents insurance when you have locks and alarms, and cyber risk management is no different. even with the most secure cyber risk controls and employee training, cyber insurance is an effective cyber risk management strategy.

What does cyber insurance cover?

there are five main areas of a good cyber policy: ½ third party claims - claims from third parties following breaches to your system. Includes defence costs, investigations and cover for fines and penalties; ½ business interruption (following a cyber incident); ½ remediation; ½ social engineering and phishing - use of deception to manipulate individuals into divulging confidential or personal information and into making payments; ½ cyber incident response line – providing an incident hotline is one of the most important features of a good cyber policy.

Real claim examples

Here are some real claim examples from small businesses, some of which are from NeCA members.

1. Social engineering and third-party liability

½ a subcontractor emailed a member asking for the bank details for a payment to be changed; ½ the member verified this request via email; ½ the subcontractor’s email had been hacked allowing the emails

to be sent to and from the subcontractor’s authenticated account; ½ payments of $70,000 were subsequently made to the bogus account; ½ a cyber policy with social engineering can manage cost recovery and reimburse any unrecoverable losses.

2. Data Breach

½ an insured client’s system was hacked; ½ the hacker had used access to request funds transfers from the insured’s clients and their bank; ½ payments were made to the hacker’s account amounting to $500,000; ½ the insurer appointed an It Forensic

Consultant to help recover $450,000; ½ the insured was paid the remaining $50,000 as a claim payment.

3. Ransomware attack

½ an insured client’s system was hacked, preventing access to documents including critical contract details and designs; ½ the insured contacted the insurance provider’s hotline; ½ an It Forensic Consultant was appointed to fix the damage and investigate if the hacker still had access; ½ a law firm was then appointed for remediation and to investigate if the matter needed to be notified to the privacy Commissioner; ½ insurance claims covered the insured’s business Interruption losses, forensics and legal costs; ½ if there had been a privacy breach, the insurer may also cover fines and mandated notifications; ½ in this instance the insured was able to claim a total of $63,000.

Cover requirements

most cyber insurers will now only offer policies where a high level of cyber security protocols have been implemented. these may include having: ½ two-factor authentication (2FA) or multi-factor authentication (mFA); ½ password protection on all devices; ½ the latest security updates and patches installed; ½ embedded firewalls and anti-virus protection; ½ processes to verify any changes to bank accounts; and ½ a two-person approval process for payments over $2,000.

Interested in a quote?

For more information on cyber insurance or to obtain a quote, call 1800 335 014 or email necaguard@neca.asn.au

Alexander Joosten

Account Manager, Willis Towers Watson (WTW) www.wtwco.com

AUSTRALIAN SOLUTIONS

FOR AUSTRALIAN CONDITIONS

AUStrALIAN’S HAVe A LONG HIStOrY OF FINDING UNIQUe SOLUtIONS FOr tHeIr prObLemS, AND It’S tHIS INGeNUItY tHAt HAS SeeN AUStrALIANS INVeNt A LONG LISt OF prODUCtS tHAt HAVe SHApeD tHe mODerN WOrLD. tHe eLeCtrIC DrILL, WI-FI teCHNOLOGY AND tHe bIONIC eAr Were ALL DeVeLOpeD IN AUStrALIA, NOt tO meNtION tHe teCHNOLOGY beHIND GOOGLe mApS WHICH IS reLIeD UpON bY mILLIONS ArOUND tHe WOrLD eACH DAY. SO WHAt GOeS INtO DeVeLOpING A prODUCt, Or re-eNGINeerING ONe tHAt DOeSN’t QUIte FIt tHe DemANDS OF tHe AUStrALIAN mArKet?

Australian-based Legend Corporation has over 30 qualified engineers and technical experts across a range of disciplines. In recent years Legend Corporation has placed a strong focus on design and innovation within the electronic and electrical segments. NeCA News recently caught up with General manager of Hendon Semiconductors, Jason Gerard, to learn more about the research and development that goes into the products released under Legend Corporation’s brands.

“It’s not common knowledge that businesses like ours even exist,” Jason said. “Not only do we support local markets by designing solutions for Australian problems, we also export products into global markets. All of this is proudly supported by the engineering capabilities of our teams right here in Australia.”

“people don’t realise that many products designed overseas just simply don’t work in Australia and often require modifications or re-engineering to be adapted to Australian conditions. A few years ago, the Hendon Semiconductor team developed a world class dimming solution to resolve the abnormal light flicker that was encountered by many traditional lighting products being imported into the country. this is just one example of how local research and development has had an impact on products most of us use every single day.”

Jason said that it’s not uncommon to have products adapted for different markets. Supporting local brands that supply Australian designed and/or Australian made products is critical in driving continued innovation within the local technology sector. Jason sees this as a growth area for the industry, and with continued support, an opportunity for many with the right skills and a curious mind to prosper. “With a renewed focus on sovereign capabilities, the demand for skilled engineers, technical and semi-skilled people is continuing to grow across all sectors. I’m incredibly excited by this and can’t wait to see what Australia’s next crop of talent will come up with in the future.”

Jason Gerard

Executive General Manager, Hendon Semiconductors

THE EV REVOLUTION IS HERE

WHAT IS THE HYPE ABOUT?

eLeCtrIC VeHICLeS (eVS) HAVe reCeIVeD SIGNIFICANt AtteNtION IN reCeNt mONtHS. NOt SUrprISINGLY, WItH OIL prICe INCreASeS, OVerSeAS CONFLICt AND SHIppING CHAOS, tHe prICe per LItre OF petrOL HAS SKYrOCKeteD. AUStrALIAN DrIVerS Are re-CONSIDerING tHeIr OptIONS AbOUt HOW tO Get ArOUND eFFICIeNtLY. IN tHIS ArtICLe, We LOOK At WHAt’S DrIVING tHe GrOWtH IN tHe GLObAL eV mArKet, HOW It WILL ImpACt tHe AUStrALIAN mArKet AND HOW tHe LOCAL eLeCtrICAL INDUStrY CAN SeIZe tHe OppOrtUNItIeS tHAt tHIS reVOLUtION preSeNtS.

A common question which has driven hesitation towards eVs has been vehicle range and charging options. the reality is any decent eV will travel in excess of 400 kilometres per full charge. With regards to charging, it is estimated that 85% of eV drivers will charge their vehicle at home, plugging in their vehicle every other night to ensure a full battery the next morning. besides the fast, silent and enjoyable performance of an eV, they are extremely cost effective to run. Charging at home costs approximately a quarter of the cost of running a petrol car and about half the cost if charging from a commercial/public fast charger. electric vehicles have changed a lot in recent years - they have become far more practical, they now have strong range, are fast and technologically superior to traditional vehicles. Some forwardthinking automotive manufacturers are re-directing much of their r&D investment into eVs, which will result in a surge of upcoming electric products.

EV global expansion and the Australian market

Automotive manufacturers are investing in eVs for a number of reasons, but one of the largest influencing factors will be their ability (or lack thereof) to sell combustion cars in the future. For example, the european Union recently announced that there will be a ban on the sale of new petrol/diesel vehicles from 2035. this will also come into effect closer to home, with the ACt bringing this into force from 2035 for passenger vehicles. there are already more than 30 countries, cities and states that will implement a ban on combustion vehicles, and this will drive significant investment from automotive brands in preparation.

Alternating current (AC) versus direct current (DC) charging

Charging an eV can occur through AC or DC charging. eV batteries only accept DC charge, and seeing as the grid only delivers AC current, a conversion needs to occur.

A charger such as the Delta AC max 22 kW receives AC current and sends that AC current directly to the vehicle. the vehicle converts the current through an on-board rectifier in the boot, which converts the power to DC. Due to the size and weight of the on-board rectifier, these are usually rated at about 11 kW. It’s important to note that the charger might be able to deliver up to 22 kW, but the vehicle is the bottle neck in this regard due to its 11 kW rectifier. A DC charger, such as the Delta DC Wallbox 25 kW, does the AC to DC conversion on the charger. the current enters the vehicle as DC, bypassing the on-board rectifier and the full 25 kW can potentially be delivered to the battery. In this scenario there is no limitation by the charger or vehicle - they are both running at optimum capacity. DC charging is usually much faster with many vehicles able to accept over 100 kW. DC chargers are available in a range of speeds, and NHp is able to support projects from 25 kW right through to 200 kW for ultra-fast performance. the eV revolution is here, and we are at the dawn of a new transport era, which will provide the electrical industry with significant opportunities for decades to come.

Craig van Spronsen

Electric Vehicle Solutions Manager, NHP Electrical Engineering Products