A “digital pandemic”. Thus, those of Allianz have renamed what has been happening in recent months on the cybersecurity front. Yes, because while the health emergency has attracted all attention, the ransomware emergency has exploded on the Net.
Attacks that encrypt company data and systems, with a request for payment of a ransom, are growing globally. According to the latest report from Allianz, the increase in the frequency and severity of ransomware incidents is driven by various factors: the growing number of multiple attack models such as double and triple extortion campaigns, a criminal business model called “ransomware as a service ”and cryptocurrencies, the recent surge in ransom demands and the rise in supply chain attacks.
“The number of ransomware attacks could greatly increase before the situation improves. – said Scott Sayce, AGCS Global Head of Cyber - Not all attacks are targeted. Criminals adopt the “shoot the heap” strategy by targeting those companies that are not addressing or are not clear about their vulnerabilities. As insurers, we must continue to work with our clients to help them understand the need to strengthen their internal controls. At the same time, in the current rapidly evolving cyber insurance market, providing emergency response services, as well as financial compensation, is now the standard ».
According to Accenture, cyber intrusion activity globally jumped 125% in the first half of 2021 compared to the previous year, with ransomware and extortion among the main causes of this increase.
According to the FBI, over the same period there was a 62% increase in ransomware attacks in the United States which followed a 20% increase for the whole of 2020. This trend in cyber risks is reflected in the claims experience of Allianz. The company, in fact, which was involved in over a thousand claims in this area in 2020, up sharply compared to around 80 in 2016. The number of ransomware claims (90) increased by 50% compared to 2019 (60).