Cyberattacks are becoming increasingly sophisticated and devastating, especially for small and medium-sized enterprises (SMEs). With ransom demands on the rise and the cost of data breaches skyrocketing, companies are investing heavily in building their cyber defenses. However, cybersecurity is not bulletproof. Purchasing a cyber risk insurance program can help outsource residual risk and deploy multi-factor authentication is a prerequisite not only for obtaining coverage, but also for reducing premiums.
Cyberattacks are becoming an existential problem
Throughout 2021, public and private organizations have felt the significant impacts of the ever-changing cyber threat landscape. Ransomware dominated the threat landscape in 2021. The targeted nature of attacks coupled with the growing sophistication of cybercriminals has resulted in significant losses for organizations around the world. The threat will increase with ransomware-as-a-service expanding its scope and reach.
In the first six months of 2021, the US Treasury Department’s Financial Crimes Enforcement Network reported that value of suspicious ransomware activity was $590 million compared to $421 million for the whole of 2020. Meanwhile, the UK’s National Cyber Security Center (NCSC) reported that in the first four months of 2021 alone, it handled the same number of ransomware incidents as in all of 2020 – which was triple the number the NCSC faced in 2019.
According to the IBM 2021 Cost of Data Breaches Report, the average cost of a ransomware breach has risen to $4.62 million, while the total cost of a data breach has increased by 10% between 2020 and 2021. The costs are linked to four groups of activities. associated with data breaches: detection and escalation, notification, loss of business and post-breach response. Lost cases account for the largest share of breach costs (38%).
As cybercriminals mature and advance their tactics, small and medium-sized businesses become the most vulnerable as they lack capacity – personnel, (Read more…)