A Cyber Insurer’s Perspective on How to Avoid Ransomware

A Cyber Insurer's Perspective on How to Avoid Ransomware

January 30, 2024 at 08:23AM

The Cyber Claims Report observes the evolving nature of cyber threats, particularly ransomware. In 1H 2023, ransomware frequency increased by 27% from 2H 2022, with an average loss of over $365,000 and an average ransom demand of $1.62 million. Businesses with more than $100 million in revenue were hit the hardest, experiencing a 72% increase in claims severity. Key steps businesses can take to mitigate cyber threats include creating offline backups, regular patching, and reducing their overall attack surface.

The key takeaways from the meeting notes are as follows:

1. Ransomware saw a significant increase in frequency and severity in the first half of 2023, with average losses exceeding $365,000 and an average ransom demand of $1.62 million.

2. Businesses with more than $100 million in revenue experienced the highest increase in both claims frequency (20%) and severity (72%).

3. Factors contributing to the resurgence of ransomware included the emergence of sophisticated malware strains such as Royal Ransomware and the activity of the Cl0p ransomware gang exploiting zero-day vulnerabilities.

4. Businesses can take three crucial steps to minimize their exposure to ransomware: creating offline backups of important data, regularly patching all software and firmware, and reducing their overall attack surface by deprecating legacy and risky technologies.

5. Despite the evolving threat landscape, implementing vital best practices can help organizations maintain cyber hygiene and potentially stay ahead of the next attack.

These takeaways provide a comprehensive understanding of the evolving ransomware threat landscape and actionable steps that organizations can take to mitigate potential losses from cyber threats.

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