On the back of a significant increase from 2017 to 2018, the volume of ransomware cyber attacks in the first-half of 2019 has already outpaced the total number of claims witnessed in the whole of 2018, according to global insurer and reinsurer Chubb.
The significant increase witnessed in the first-half of this year follows an 84% jump in the number of ransomware attacks from 2017 to 2018, and shows that the trend is continuing.
The data is from Chubb’s latest Cyber InFocus report, which explores the continued growth in ransomware attacks across industries, underlining the need for adequate and effective cyber risk solutions from both insurers and reinsurers in a changing risk landscape.
Michael Tanenbaum, Head of Chubb Cyber North America, said: “Ransomware is not new, but has evolved over time. In today’s environment, the impact of a company’s system becoming inoperable can result in severe and long-term disruption for a business.
“Some ransom demands have grown to the six-and seven-figure range, so it is critical for businesses to understand the increased sophistication of ransomware, what procedures and systems need to be in place to mitigate the risk, and what solutions they need to protect themselves should they experience an attack.”
Of the total number of ransomware incidents reported to Chubb in the third-quarter of 2019, professional services accounts for 30%, manufacturing 23%, technology 13%, and healthcare 11%, while entertainment/media, public entity, education, retail hospitality, financial institutions and other all scored less than 10%.
According to Chubb’s Cyber Index, which offers real-time access to Chubb’s proprietary cyber data, malware claims, which include ransomware, have increased to 18% of all cyber claims in 2019, compared with an average of 12% over the past five years.
Furthermore, so far in 2019, ransomware accounts for 40% of all manufacturers cyber claims and accounts for 23% of all cyber claims from smaller businesses.
Anthony Dolce, Vice President, Cyber Lead, Chubb North America Financial Lines Claims, said: “As bad actors are continuously changing their attack techniques and increasing the complexity of the ransomware, it’s imperative to implement multiple layers of preventative measures to mitigate potential incidents and ensure a reaction plan is in place if an attack occurs.
“By regularly backing up data files and securing those backups offline, properly educating employees, investing in state-of the-art security and antivirus software, and purchasing a comprehensive cyber insurance policy, businesses can be better prepared and protected no matter the threat.”