Ransomware attacks are getting more expensive and are affecting businesses of all sizes, not just large corporations. Email compromise attacks are also increasing in sophistication and frequency.
There are four emerging risk trends:
1. Heightened risk of state-sponsored attacks
2. The evolving third-party liability landscape
3. A shortage of cyber security professionals
4. ESG monitoring of cyber governance is growing
5. Growth of Cyber Insurance
Ransomware: Growing Cyber security threats
As the world becomes more digital, the opportunities for criminals to commit crimes are changing. One method is ransomware. It is a type of malware that encrypts a victim’s files and demands payment of a ransom to decrypt them. Ransomware has become a growing cyber security threat in recent years. It is relatively easy to obtain and use and can be very profitable for criminals.
Some of the most common ransomware attacks are via sophisticated phishing emails. These emails often look like they come from legitimate companies or organizations. It may contain malicious attachments or links. Victims who click on these attachments or links may download ransomware to their computers. Then encrypts their files and demand payment of a ransom. Ransomware can also be spread via malicious websites or files. They are distributed on peer-to-peer networks. In addition, ransomware is often available as a “Ransomware-as-a-Service” (RaaS) offering. It allows criminals to easily carry out ransomware attacks against their victims.
This means that insurance companies can better understand the risks of cyber-attacks and plan for them accordingly. This, in turn, helps to make sure that there is a market for cyber insurance that can last over time. There are three main cyber risks that organizations face globally: Ransomware, business email compromise, and deep fake era.
Ransomware is when a person’s or organization’s computer is taken over and they have to pay to get it back. A business email compromise is when someone pretends to be someone else to get information or money. The deep fake era is when people use technology to make it look like someone else is saying or doing something.
According to a recent analysis from Allianz Global Corporate & Specialty, the conflict in Ukraine and broader geopolitical tensions are a huge concern. Since hostilities could flow over into cyberspace and result in targeted assaults against businesses, infrastructure, or supply networks (AGCS).
The insurer’s annual review of the cyber risk landscape found that companies are increasingly relying on cloud services, which can pose vulnerabilities. The review also found that third-party liability is evolving and that there is a shortage of cybersecurity professionals.
”Companies are at risk of being attacked by cybercriminals, but those that are prepared are better able to deal with the threat and minimize losses.”
Resting on one’s laurels is not an option given the current state of cyber risk. According to Scott Sayce, Global Head of Cyber at AGCS and Group Head of the Cyber Centre of Competence, ransomware and phishing scams are as prevalent as ever. There is also the possibility of a hybrid cyber war. The majority of businesses won’t be able to avoid a cyber security threat. It is evident, therefore, that businesses with strong cyber maturity are better prepared to handle incidents.
We are seeing some companies improve their cybersecurity, but many still need to do more, especially when it comes to training employees and making sure their systems are secure. As an insurance company that specializes in cybersecurity, we are willing to help our clients by providing more than just insurance coverage. We can help them raise their protection levels and be prepared for changes in the risk landscape. This is according to AGCS to reduce cyber threat.
Ransomware: Growing cyber risks
There were a lot of ransomware attacks in 2021 and they are still happening a lot in 2022. They are expensive for companies to fix.
The cost of ransomware attacks has increased because criminals are now targeting bigger companies and stealing more sensitive data. This is a major problem. Ransomware is costly to fix and sometimes businesses have to pay the criminals to get their data back.
Some companies are being targeted by gangs because they lack security controls and resources to invest in cyber security. The gangs are using a variety of methods to harness the companies and are tailoring their ransom demands to specific companies. They are also using expert negotiators to try to get the most money possible from the companies.
BEC attacks are where someone pretends to be someone else to get money from a business. So far, these attacks have cost businesses around 43 billion dollars. They are becoming more common because of things like remote working and ‘deep fake’ technology. This is when someone uses technology to make it look like someone else is saying or doing something.
Some criminals are pretending to be people they’re not to get people to give them money or sensitive information. They’re using new technology to make their voices or videos look real, and this is fooling some people. Last year, someone lost a lot of money because they believed a fake video they saw.
The current geopolitical situation is affecting the cyber threat landscape. The landscape is changing because there is now a higher risk of espionage, sabotage, and destructive cyber-attacks against companies with ties to Russia and Ukraine. This is because of the war in Ukraine and because of wider geopolitical tensions.
Forms of ransomware
In other words, there are more and more cyber attacks happening. Hackers target a company’s weak spots to get money from them. These attacks can have a big impact, like causing disruptions in things we rely on, like the Colonial Pipeline. These are Hackers in Supply Chain.
Outsourcing to the cloud means that companies use an external provider for services or data storage, usually over the Internet. This can be cheaper and more efficient than storing everything in-house, but it also carries some, cyber risk. If something goes wrong, the company, not the cloud provider, is usually responsible for fixing the problem. And if many companies use the same cloud provider, that provider becomes the single point of failure – meaning that if something goes wrong, many companies are affected.
Liability means that someone is held responsible for something they did not do. For example, if someone hacks into a company’s computer system and steals information, the company could be held liable because it did not adequately protect the information. As technology advances, more and more information is being collected by companies, and there are increasingly strict privacy regulations. This means that companies can be held liable for cyber incidents such as ransomware attacks.
Third-party liability is when someone is held responsible for something that they did not do. For example, if someone hacks into a company’s computer system and steals information, the company could be held liable for not having enough security to protect the information.
With advances in technology, more information is being collected by organizations, and there are more strict data privacy regulations.
Cyber Risk Management
There is a worldwide shortage of professionals who can improve cyber security. This shortage has grown 350% over the past 8 years. There are now 3.5 million unfilled jobs in this field. Many companies are struggling to hire enough people to improve their cyber security, which leaves them vulnerable to attack.
ESG refers to a company’s environmental, social, and governance practices. Cyber security is increasingly being seen through the ESG lens, which means that more and more stakeholder groups (such as data providers) are evaluating a company’s preparedness for cybercrime. A company needs to have strong cyber security practices in place, and for the board of directors to be aware of these practices and risks.
The insurance industry is trying to make companies better at managing cyber risks by looking more closely at those companies’ profiles. They want to make it worth the companies’ while to improve their security and risk management controls.
A few years ago, companies were trying to understand what the problem was. Now we are much more focused on providing solutions.” Before, people didn’t understand how cyber threat worked, but now people are working together to try and fix the problem.
Ransomware is one of the sophisticated scams.This means that working together can help reduce the number or importance of cyber events, as well as the number of insurance claims related to them. This will also help create a more sustainable system for dealing with cyber risks in the future.
To read more blogs, click here.