Online scams report findings from 2023 reveal an alarming rise in cyberattacks targeting businesses of all sizes. The FBI’s Internet Crime Complaint Center (IC3) recorded more than 880,000 cybercrime complaints, with reported losses surpassing $12.5 billion—a record high. A significant portion of these losses stemmed from phishing attacks, Business Email Compromise (BEC), and ransomware, all of which have become increasingly sophisticated. These aren’t just IT problems—they’re business risks that can lead to operational shutdowns, lawsuits, and irreversible financial loss. In this environment, Cyber Liability Insurance has become an essential part of business risk management. What the Latest Online Scams Report Tells Us
According to the FBI’s most recent Internet Crime Report, here’s what businesses need to know:
Business Email Compromise (BEC) resulted in more than $2.9 billion in losses in 2023 alone.
Phishing scams remain the most reported type of cybercrime, making up over 298,000 complaints.
Ransomware attacks targeted critical infrastructure, small businesses, and healthcare systems, with average recovery costs reaching over $1.85 million, according to IBM’s 2024 Cost of a Data Breach report.
These numbers show that no business is immune, no matter its size or industry. Criminals are increasingly targeting small and medium-sized businesses, knowing they often lack the sophisticated cybersecurity tools used by larger corporations.
The Real Cost of an Online Scam
Cyberattacks can cause more than just financial losses. The aftermath can include:
Business interruption – Your operations may shut down for days or weeks.
Reputational damage – A data breach can erode customer trust permanently.
Regulatory fines – Businesses that store customer data can face penalties under laws like HIPAA or GDPR.
Legal expenses – If customers or partners sue, you’re responsible for defense costs.
That’s where Cyber Liability Insurance becomes critical. This type of coverage helps businesses recover from cyber events by covering:
Data breach response and notification costs
Legal and regulatory expenses
Ransomware payments and negotiations
Forensic investigations
Loss of income during system downtime
Real-World Example Highlighted in the Online Scams Report
A powerful example of how online scams can impact organizations occurred in Arlington, Massachusetts, in 2024. The town lost $445,000 to a sophisticated BEC attack. Cybercriminals impersonated a school construction vendor and tricked municipal employees into changing payment information. Four payments were made before the fraud was discovered. This incident received wide media coverage and highlighted just how easily systems can be exploited—even in government settings.
While Arlington is a municipality, the tactics used in the scam—spoofed emails, altered bank details, and urgent payment requests—are the same methods commonly used to target private businesses every day.
Why Cyber Liability Insurance Is Non-Negotiable in 2025
As the digital threat landscape continues to grow, Cyber Liability Insurance offers more than financial protection—it provides peace of mind. With insurance in place, businesses can:
Act quickly and legally after a data breach
Minimize downtime and financial disruption
Access expert resources for system recovery
Show clients and partners that you take cybersecurity seriously
Many small business owners mistakenly believe their General Liability Insurance covers cyber incidents—it doesn’t. Cyber Liability Insurance is a separate policy that specifically addresses today’s most common and costly threats.
How to Reduce Your Business’s Risk
In addition to securing Cyber Liability coverage, here are key steps your business can take:
Train employees to recognize phishing emails and social engineering tactics.
Use multi-factor authentication (MFA) for all systems.
Back up data regularly and encrypt sensitive information.
Keep software up to date and use reputable cybersecurity tools.
Establish internal controls for wire transfers and payment authorizations.
But even with the best prevention, no system is 100% secure. That’s why having the right coverage is essential.
Final Thoughts: What This Year’s Online Scams Report Should Teach Us
The online scams report is clear: cybercrime is rising fast, and businesses are increasingly in the crosshairs. A single phishing email or compromised account can lead to devastating losses.
At Premium Insurance Group, we help business owners navigate these risks and choose the right Cyber Liability Insurance for their needs. If you’re unsure whether your business is protected, now is the time to find out.
Don’t wait for a scam to become your reality. Be proactive. Be protected.
