Do I need personal cyber insurance?

In today's technology-dependent, data-driven environment, we're all potential targets for cybercriminals. The massive Equifax® attack by hackers in 2017 exposed the personal data and Social Security numbers of 147.9 million people. It was a wake-up call for the average American. This breach shows how vulnerable and valuable our personal information and identity can be and underscores the importance of protecting your data.

These days, it can feel like we're under constant attack thanks to news about increasing online threats like identity theft, malware, ransomware attacks, phishing scams and cyber blackmail. USAA is here to help you identify potential risks and help keep you and your family protected while on deployment.

Just as insurance coverage protects your home, personal cyberattack insurance can help arm you and your family against online threats.

How does personal cyber insurance help?

A personal cyberattack insurance policy provides a range of coverages designed to help protect you and your family from online threats. It can help offset the recovery cost from an online attack, like cyber blackmail, identity theft or fraud, cyberbullying and more.

What is cyber blackmail?

Also known as cyber extortion or a ransomware attack, cyber blackmail is when a hacker sneaks into your computer and codes your files with malicious software that locks them. This gives the hacker total control and shuts you out until you pay a ransom. Hackers may demand payment in the form of cryptocurrency like Bitcoin since the payment transaction is online and anonymous.

Another cyber blackmail scenario is when someone accesses your personal data and threatens to release it publicly unless you pay them.

Are there different types of identity theft?

Gone are the days when having your credit card or financial information stolen was the biggest risk to your identity. While financial identity theft is still the most common, 46% of Americans experienced fraud in 2022 according to the FTC's Consumer Sentinel Network. And there are other types of identity theft that can be as profitable for thieves and potentially problematic for you. Here are a few examples:

• Medical identity theft. Your medical records contain valuable personal and protected health information conveniently stored in one location. And because your records travel from your health care provider to patient billing, to your insurance company's claims processing department, hackers can jump on board at any point in the journey.
• Tax identity theft. Hackers can use your stolen personal information, including your Social Security number, to file a tax return and get a fraudulent refund. They also could steal your refund before it gets to you. The IRS urged Americans to be on the alert for tax scams during the pandemic when compiling its "Dirty Dozen" list for 2021.^{See note1}
• Child identity theft. Kids make vulnerable targets since they have a "clean credit slate" for hackers and identity thieves to work with. Most parents won't check to see if their child has a credit report, so it's possible for identity thieves to use a child's stolen Social Security number for years without being detected. The first time you or your child become aware of any fraudulent activity using their personal information could be when they apply for their first credit card or go to rent their first apartment

Who's at higher risk for cyberattacks?

Anyone who owns a laptop, tablet, smartphone, smartwatch or any other smart device has some level of risk of a potential cyberattack. And if you use social media and online apps for things like banking, fitness or driving — most of us do on a regular basis — you're leaving a digital footprint that cyberthieves can follow.

Federal Trade Commission research also suggests that military members are experiencing higher instances of theft from their financial accounts compared to the general population.

The study revealed that active-duty service members are:

• More likely than other adults to report that an identity thief has misused one of their existing accounts, like a bank account or credit card.
• More likely to report that someone used a debit card or some other electronic means to take money directly from their bank account.
• Likely to report that their stolen information was misused to open a new account, especially new credit card accounts.

How can I protect myself?

Be as diligent about your online safety as you are in other aspects of your life. Staying alert to potential online dangers can help prevent your personal and financial information from falling into the wrong hands.

USAA can help guide you with security steps to take in certain scenarios.

• You get a suspicious email. Phishing emails are a highly effective tool cybercriminals use to trick people into divulging their account information or security credentials.
• Your PC got hacked. If your PC has slowed down, displays frequent alerts or strange pop-ups, it could have been infected with malware.
• You got a suspicious call. Cybercriminals are not shy about picking up the phone. And you'd be surprised how many people fall for it and share their credit card information.
• Your Facebook got hacked. Social media is a lucrative hunting ground for cybercriminals looking to cash in on your connections.

As technology and security measures evolve, so have the methods hackers use to access your data. And they're not about to stop or slow down. Your personal information is too valuable on the black market.

What do I do if I think I'm a victim?

Act immediately to report suspicious activity. The quicker you act, the more likely you are to stop cyber thieves in their tracks. Early detection is critical to help protect your personal information and minimize damage to your credit or finances.

USAA has resources to help you understand how to help protect yourself and all your devices from online attacks whether home or away.

If your identity has been stolen, we can help guide you through the process of recovering your identity and repairing your good name.

Whether you're home or away on deployment, contact your USAA Insurance professional to discuss your options and make sure you get the coverage you need should cyberthieves strike.