It’s been a rough year, and we’re not even all the way through it.
One of the contributing factors however, is how rampant cyber insurance claims have been in the first half of 2020. The leading cause on 41% of these cases? Ransomware.
Claims ranging between $1000 to $2,000,000 have littered the better part of this year, in part due to the raging COVID pandemic, in part due to just malicious intent and a wider net cast as technology advances and infiltrates our daily lives.
One of the largest providers of cyber insurance services in North America, Coalition, published their findings that this high number of claims confirms reports from cyber security agencies across the globe, “that ransomware is one of today’s most prevalent and destructive threats.”
Coalition also reminds us that “ransomware doesn’t discriminate by industry. We’ve seen an increase in ransom attacks across almost every industry we serve.”
There has been a 260% increase seen in the frequency of attacks for Coalition’s policy holders in the past six months alone, 47% on average seeing an increase in ransom demand.
Who is the most aggressive on the ransomware stage? Taking the spotlight is “Maze and DoppelPaymer, which have recently begun exfiltrating data from hacked networks, and threatening to release data on specialized leak sites, as part of double extortion schemes.”
A spike in insurance claims has also been recorded for “funds transfer fraud attacks and business email compromise (BEC) events, with the first growing 35% from 2019 to 2020, and the second growing 67%.” These attacks are tricks by criminal gangs to trick a company into making a payment to an “attacker-controlled account.”
Losses from these attacks range from thousands to millions, but in most cases, with quick intervention the lost funds can be recovered. Coalition has recovered funds in 55% of all cases at an average of 84% of the funds themselves.
As we cautiously wade into the last half of 2020, we need to be increasingly aware of the danger these ransomware gangs present, and the idea that no one company is more vulnerable than the next. Cybersecurity training, awareness, and preparedness will decrease your chance of becoming a statistic.
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