The Federal Trade Commission reports total fraud losses reached a record $15.9 billion to $16 billion in 2025, marking a sharp rise from previous years ($12.5 billion in 2024). Cyberthieves are getting smarter and faster at deceiving consumers, with imposter scams at the top of the most reported forms of cybercrime. Most commonly reported fraud are scams using social media and phone, with the rest attributed to other digital offenses such as ransomware or malware. Solicitations have a heavy focus on the older adults (Ages 60+).
Virginia residents lose an estimated $2.3 billion a year to online scams and ranks 13th nationally for overall fraud complaints and 11th for elder fraud losses. Fraud is even impacting the insurance industry. Just as you protect your assets from the economic fallout of a home fire, the need for financial protection in a global online environment is a stark reality of the times we live here in the commonwealth.
Your homeowners insurance can help you repair and rebuild after a covered fire, but protection against identity theft and cybercrime generally requires additional coverage. Personal cyber insurance is an insurance endorsement that can help with certain recovery expenses and financial losses, depending on your policy’s terms, limits, and exclusions. Restoring your identity and resolving a cyber incident can take time and money, so understanding your coverage before something happens is an important part of being prepared. It protects you and your family from various forms of cybercrime. Depending on your policy, coverage may help with losses or expenses related to credit card fraud, forgery, fraudulent wire transfers, cyber extortion, ransomware, and cyberbullying.
Cyber insurance covers related expenses when your family experiences identity theft and more. Here are a few examples of covered damages:
Coverage varies by policy. Depending on the covered incident, terms, limits, and exclusions, benefits may include:
As we continue to rely on computer networks and digital data for daily operations and to store important personal and financial data, cyber insurance should be a serious consideration for any consumer's financial portfolio. Here at NNINS, we offer a cyber protection product with our homeowners insurance for a minimal fee. Talk to your local insurance agent, and always be sure to utilize real-time identity validation and authentication best practices.
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THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNIC Virginia insurance experts through our blog. While we hope you find this helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.