Despite new cyber threats, ransomware remains at the top
Source: Asia Insurance Review | Dec 2022
Ransomware remains a top cyber risk for organisations globally while business email compromise incidents are on the rise and will increase further in the ‘deep fake’ era according to a new report from Allianz Global Corporate & Specialty (AGCS).
Russia president Vladimir Putin’s invasion of Ukraine and wider geopolitical tensions are also a major concern as hostilities could spill over into cyber space and cause targeted attacks against companies, infrastructure or supply chains.
The annual review has highlighted the emerging threats posed by the growing reliance on cloud services, an evolving third-party liability landscape that means higher compensation and penalties, as well as the impact of a shortage of cyber security professionals.
Around the world, the frequency of ransomware attacks remains high, as do related claims costs.
Ransomware is forecast to cause $30bn in damages to organisations globally by 2023. From an AGCS perspective, the value of ransomware claims the company was involved in together with other insurers, accounted for well over 50% of all cyber claims costs during 2020 and 2021.
Increasingly, smaller and mid-sized companies which often lack controls and resources to invest in cyber security are being targeted by gangs as larger businesses invest more heavily in security. Gangs are also using a wide range of harassment techniques, are tailoring their ransom demands to specific companies and are using expert negotiators to maximise returns.
Business email compromise (BEC) attacks continue to rise, facilitated by growing digitalisation and availability of data, the shift to remote working and, increasingly, ‘deep fake’ technology and virtual conferencing. According to FBI, BEC scams totalled $43bn globally from 2016 to 2021, with a 65% spike in scams between July 2019 and December 2021 alone. A