The threat to businesses from a cyber breach is on the increase.
Government figures in 2015 revealed 81% of large businesses and 60% of small businesses had suffered a cyber security breach.
Cyber claims statistics from 2013 – 2016 show cyber extortion and ransomware to be the fastest growing cyber-crimes.
From 2013 – 2016 encryption ransomware claims accounted for 16% of known claims and a further 4% related to other cyber extortion’s.
“For the first nine months of 2016 we had a lot of notifications from businesses that were victims of ransomware type attacks, and nearly all of them had extortion elements to them as well”, says Kathy Avery, Financial Lines.
Major Loss Adjuster: “A lot of quite small businesses have been affected.”
One example involved an online business. The owners discovered ransomware had infiltrated their computer and was encrypting files, making it impossible to contact customers and access invoices. They believed they had no choice but to pay the ransom in order to unlock their files.
Such ransom demands are often small, usually paid in Bitcoin, but can be lucrative given the high frequency of attacks. Malicious hackers are thought to have generated around $325m in revenue over the past three years by using ransomware software known as CyrptoWall according to research by the Cyber Threat Alliance.
The Internet of things
The Internet of things, refer to the huge number of everyday devices with the ability to gather data through built-in sensors and transmit over the Internet. For example. Smart TV’s, CCTV cameras, digital video recorders, smart thermostats, webcams and home routers to name just a few. A threat currently worrying experts is a large scale DDOS (Distributed Denial of Service) attack n such devices resulting in widespread disruption. Such attacks are on the increase, up 138% year on year, according to Akamai’s latest State of the Internet/Security Report.
For those affected by ransomware or Denial of Service attacks, business interruption costs are highest during peak trading periods. In one particular case, although the ransom demand was only £262, the business interruption claim for the company concerned was in seven figures, as their website was taken down over the weekend.
Whilst cyber-attack, and more specifically ransomware, is on the increase, many businesses, of all sizes, still do not fully understand the risks involved or the need to have robust cyber security in place. They also currently tend to over-estimate the extent to which their existing insurance provides cover.
From a severity perspective, businesses interruption and data breach will continue to be significant drivers of loss now and into the future. If your business holds sensitive customer details, relies heavily on IT systems and websites and/or processes payment card information, the threat of a cyber-attack is very real.
We can help protect your vulnerability to cyber threat by arranging cover against a wide range of risks, including business interruption, theft of intellectual property, loss of income, dame, management of recovery/repair to corrupted or lost files, reputational damage and more.
We work with specialist insurers who provide Cyber coverage and we will work with you to identify which cover suits your business needs.