Ransomware attacks have already risen to unprecedented levels since the beginning of the COVID pandemic, and they are only going to increase. Already we’ve seen an increase of at least 7x in just 2020, and it’s expected that 75% of businesses will experience at least one attack within the next 4 years.
As our network vulnerabilities have increased with the switch to remote work, so has the sophistication of cyber attacks. Unfortunately, even with cyber insurance, many businesses are faced with bearing the full weight of the attacks as claims are being denied. Not only that, but cyber insurance premiums are also increasing regularly. Month-to-month premiums grew by 10% in the first three months of 2021 and deductibles rose to $1 million.
Not only are insurance costs increasing, but 73% of US insurers are simply declining coverage to more and more applicants as attacks become more common. The application process is becoming more arduous with reduced coverage for high-risk sectors, security audits for new applicants, decreased coverage limits, and capped ransom payouts.
Of course, the true cost of these attacks is certainly not in financial loss to businesses. Recent attacks resulted in 61% of victims reporting a loss of data and 82% losing significant data due to corruption, and the trickle down effect of attacks comes in the loss of jobs and loss of entire businesses.
As recovering from attacks is becoming more and more difficult, organizations must make every effort necessary to prevent these attacks from ever occurring.