Mishing: The Latest Cyber Threat

March 1, 2025

Businesses of every type face constant threats. These threats, whether they are product or professional liabilities, economic shifts, or regulatory changes, stand as risks to the financial health of business owners. A new risk—that of computer-based crime—continues to evolve; the latest attack, known as “mishing,” represents a cyber risk that many business owners are unprepared for.

In this article, we define mishing and explore how business owners can mitigate risks to supplement the protection of cyber liability insurance. To learn about cyber insurance solutions, visit our Cyber Insurance page.

What is Mishing?

Mishing, a portmanteau of “mobile” and “phishing,” is a cyber threat that targets individuals through SMS and messaging apps on mobile devices. In these attacks, cybercriminals impersonate legitimate institutions, such as banks or government agencies, aiming to trick recipients into disclosing personal information or downloading malware.

Mishing often begins with a message that appears urgent, persuading the victim to act swiftly—either by clicking on a malicious link, responding with sensitive details, or initiating a transaction. This method exploits the immediate and personal nature of mobile communications, making it highly effective for stealing data or money. Unlike traditional phishing, which relies on emails, mishing’s use of mobile platforms allows attackers to reach their targets anytime and anywhere, increasing the likelihood of successful scams.

How Do These Attacks Threaten Businesses?

A mishing attack can have severe consequences for businesses across several dimensions:

• Financial Losses: Businesses may suffer direct financial damage due to fraudulent transactions initiated through mishing attacks. There’s also the potential for significant financial penalties if customer data is breached and the incident falls foul of data protection regulations.
• Reputational Damage: The impact on a company’s reputation can be substantial and long-lasting. Customers lose trust in a brand that fails to protect their personal information, potentially leading to a loss of business and a tarnished public image.
• Operational Disruption: Mishing attacks can lead to operational disruptions if critical systems are compromised. For example, attackers might gain access to network credentials via mishing, allowing them to infect systems with malware or ransomware, which can halt business operations.
• Legal and Regulatory Implications: If sensitive information is leaked or stolen during a mishing attack, a business could face legal challenges or regulatory scrutiny. This includes lawsuits from affected parties and fines from regulators for failing to secure personal data adequately.

These impacts underscore the importance for businesses to adopt comprehensive cybersecurity measures and conduct regular training for employees on recognizing and responding to mishing and other phishing-type attacks. Read on to see how cyber liability insurance can protect business assets from loss.

Cyber Liability Insurance: The Foundation of Mishing Risk Management

Cyber liability insurance plays a critical role in helping businesses manage and mitigate the risks associated with mishing attacks. Here’s how an insurance program can be beneficial:

1. Coverage for Financial Losses: Cyber liability insurance can cover direct financial losses that result from a mishing attack. This includes costs related to fraudulent transactions and the restoration of affected systems and data.
2. Legal and Regulatory Costs: If a mishing attack leads to a data breach, businesses may face legal actions or regulatory fines. Cyber liability insurance can help cover legal fees, settlement costs, and regulatory penalties.
3. Incident Response and Recovery: Many cyber liability policies include services to help businesses respond to incidents efficiently. This can include access to forensic experts to determine how the breach occurred, public relations services to manage reputation damage, and expert guidance on legal obligations.
4. Extortion Coverage: If a mishing attack involves ransomware or any form of extortion, cyber liability insurance can cover the ransom payments and the cost of negotiation services.
5. Business Interruption Losses: If a mishing attack disrupts business operations, cyber liability insurance can help cover the loss of income during the downtime, helping businesses maintain financial stability.

By providing these coverages, cyber liability insurance not only helps a business financially but also supports quick and effective responses to cyber incidents, reducing the overall impact on the business. This makes it a valuable component of a comprehensive risk management strategy for modern businesses facing increasing threats from cyberattacks like mishing. Working with a qualified and experienced cyber liability insurance underwriter is key to finding risk management solutions that work for a given business’s specific needs and risk profiles. ◼