Cyber Insurance Claims Surge Due To Ransomware Attacks

The frequency and severity of cyber insurance claims surged due to ransomware, funds transfer fraud (FTF) and business email compromise (BEC) attacks.

  • October 23, 2023 | Author: Allison Bergamo
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Cyber insurance is like auto insurance—you hate paying for it and hope you never need it. Unfortunately, many organizations filed claims for cyberattacks in the first half of 2023. According to cyber insurance agency Coalition's 2023 Cyber Claims Report: Mid-year Update, the frequency and severity of cyber insurance claims surged due to ransomware, funds transfer fraud (FTF) and business email compromise (BEC) attacks.

According to the Coalition report:

  • The frequency of cyber claims increased by 12 percent in the first half of 2023.
  • Claims severity increased by 42 percent with an average loss amount of more than $115,000.
  • The key drivers for these claims were FTF (31 percent), followed by BEC (26 percent) and ransomware (19 percent).

Given its popularity among cybercriminals, it’s no surprise that the frequency of ransomware increased by 27 percent. The Coalition report also revealed that the severity of ransomware claims reached a record-high with an average loss of more than $365,000. This is a 61 percent increase within six months and a 117 percent increase within one year. 

And some more bad news—the average ransom demand in the first half of 2023 skyrocketed to $1.62 million. This is 47 percent increase over the previous six months and a 74 percent increase over the past year. Despite being hit hard in their wallets, Coalition noted that 36 percent of its policy holders opted to pay a ransom.

With payouts like these, it’s no wonder ransomware isn’t slowing down anytime soon. However, you can take specific actions to better protect your clients’ data and networks. Fortinet can help.

Our Fortinet Security Fabric empowers security teams to reduce network complexities and enhance detection efforts. Our managed detection and response (MDR) and SOC-as-a-service (SOCaaS) offerings help your clients’ overburdened security teams strengthen their organizations’ security postures with advanced cybersecurity solutions. 

When it comes to fighting cybercriminals, knowledge is a powerful defense. That’s why FortiGuard Labs offers ongoing cybersecurity awareness education and training programs to supplement your risk management strategies.

Explore our ransomware protection solutions to learn how you can help your clients avoid being victims of ransomware.

 

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