AI is changing the landscape of cybersecurity. AI has armed cybercriminals with tools that fool even the most savvy users, adding a new layer of risk for businesses of all sizes.
AI Increasing Volume and Sophistication of Cyber Attacks
AI is increasing the volume and sophistication of existing cyber attack tactics. Phishing is a well-known cyber attack tactic that utilizes email, text, or other platforms to send messages from a seemingly trusted source in an attempt to steal sensitive information.
With AI tools, cybercriminals can now create more believable phishing attacks, appearing more trustworthy than ever.
LLMs (large language models) can incorporate real-time information from news outlets and corporate websites to utilize in phishing attacks, creating a false sense of credibility and urgency in their messages. AI can scrape social media accounts to mimic someone's communication style and even their voice (known as vishing) to mimic someone's voice on a phone call or voicemail.
AI can create and deploy targeted phishing attacks much faster than human attackers ever could, increasing the volume and scale of their efforts.
Studies have shown that people are significantly more likely to click on an AI-generated phishing campaign than a human-generated one.
AI Increases Cyber Risks for Businesses
With cyber attackers using AI to deploy more sophisticated attacks, the risk of businesses falling victim to a cyber attack has also risen.
Every employee is being inundated with text messages, emails, and direct messages on social platforms with the express intent to access their sensitive information across software, apps, and programs you use to run your business.
Experts agree that employees are often considered the biggest cyber risk for companies.
Human error, such as clicking on a phishing email, accidentally sharing sensitive information, loss or theft of company computing equipment, or using weak passwords, can result in a cyber attack or data breach for your business.
How to Reduce AI Cybersecurity Risks
No business is "too small" to worry about cyber security risks. Here are three ways you can take action to protect your business against human error.
1. Password Security
Password security is one of the simplest, yet most overlooked, ways to strengthen your cyber defenses. Employees often reuse passwords across multiple accounts or choose weak ones that create easy access points for cybercriminals. Password sharing can also create a weakness that is easily exploited.
- Ensure all employees have their own unique logins and passwords.
- Instruct employees on the difference between a strong password and a unique one.
- Utilize a password manager or vault to help employees keep track of their passwords.
2. Employee Education
Employees may not realize just how broad of an issue phishing and other cyber attacks are. Attackers may impersonate colleagues or clients to manipulate employees into granting access or providing sensitive information. Regular cybersecurity training can help employees recognize and resist these tactics.
3. Utilize MFA
Multi-factor authentication (MFA) is a security process that requires multiple forms of verification to access an account. It's also known as two-step verification. MFA makes it harder for unauthorized users to access your accounts and for hackers to steal your passwords or other sensitive information.
4. Carry Cyber Liability Insurance
Cyber liability insurance is one of the fastest-growing commercial insurance policies. Demand for cyber liability insurance is surging as more and more business owners understand the potential for cyber risks -- and the potential for financial losses that come with an attack.
An IBM report revealed that the average cost of a cyber attack increased by 10% in 2024 to a staggering $4.8M.
5. Fight AI with AI
The same technology that is increasing the risk of cyber attacks can also be applied to protect your organization. The IBM study revealed that organizations that applied AI and automation to security prevention saw the biggest impact in reducing the cost of a breach, saving an average of $2.22M over those organizations that didn't deploy these technologies.
While it can be hard to believe that your small business or trade could be the victim of a sophisticated AI-driven cyber attack, data has shown that 50% of small to medium businesses have been the victims of cybercriminals. These criminals are counting on you to be unprepared. Make cyber safety a priority for 2025, and you can help reduce your risk.
Schedule a call with a trusted commercial insurance professional to find out how you can protect your business against cyber attacks and other risks.