The Human Factor in Cyber Risk

IBM’s 2024 Cost of a Data Breach Report found that 74% of data breaches involved a human element—mistakes such as clicking a malicious link, using weak passwords, or mishandling sensitive data. In Illinois, where many small and midsize organizations lack dedicated IT staff, these errors are particularly costly. One misplaced email or file upload can expose hundreds of records, triggering mandatory notifications under state privacy laws.

Real-World Illinois Examples

In 2024, a Chicago-area nonprofit fell victim to a payroll diversion scam when a spoofed email led an HR manager to reroute employee paychecks to a fraudulent account. The loss was eventually recovered, but only after weeks of disruption and reputational damage. In another case, a Will County manufacturer paid a six-figure ransom after an employee opened what appeared to be a vendor invoice. The attack crippled production for three days and exposed sensitive client data.

Cyber Insurance: Changing Requirements

Cyber insurance claims in Illinois rose 38% in 2024, according to Marsh’s 2025 Cyber Claims Review. Insurers are tightening underwriting standards and requiring organizations to prove strong cyber hygiene before binding coverage. That includes multi-factor authentication (MFA), endpoint protection, and regular employee training. Without these safeguards, even the best-intentioned policyholders may face exclusions or denied claims.

Smart Prevention Strategies

Technology alone isn’t enough. A culture of cybersecurity awareness is the best defense against everyday errors. Effective measures include:

• Conducting quarterly phishing simulations and awareness sessions.
• Requiring strong, unique passwords and enforcing regular changes.
• Implementing clear bring-your-own-device (BYOD) and data handling policies.
• Backing up critical systems frequently and testing restoration processes.
• Reviewing vendor security protocols for third-party risks.
• Engaging executives and board members in cyber risk oversight.

Action Plan for 2026

As cyber threats continue to evolve, proactive defense is no longer optional—it’s expected. Illinois organizations should take the following steps before renewing or purchasing cyber insurance:

• Review your policy’s coverage triggers, sublimits, and response support.
• Implement training programs that qualify for insurance premium credits.
• Conduct an annual tabletop exercise simulating a data breach.
• Work with your broker to benchmark coverage limits against your exposure.

→ Even the best firewall can’t stop a click. Protect your people and your business—ask us about cyber coverage and training resources tailored for Illinois organizations.

Sources

1. IBM – Cost of a Data Breach Report, 2024
2. Marsh – Cyber Insurance Claims Review, 2025
3. Illinois Department of Innovation & Technology – Cybersecurity Advisory, 2025
4. National Cybersecurity Alliance – Employee Awareness Toolkit, 2024

Smarter Cyber Defense: Why Human Error Still Tops the Risk List

Despite major advances in cybersecurity tools and threat detection, one risk factor continues to dominate breach reports: human error. From phishing emails to misdirected attachments, the weakest link in most Illinois organizations’ security posture isn’t the network—it’s the people using it. For both businesses and nonprofits, the combination of hybrid work, staff turnover, and digital fatigue has made 2025 a year where training and awareness matter more than ever.