Ransomware attacks are on the increase and getting more sophisticated, and organizations should increase their preventative steps including strong IT security and Cyber Risk Insurance (also called Data Breach, Privacy and Network Security insurance coverage).
Recent ransomware targets include:
- Hospitals, physicians and other healthcare groups (see our prior post)
- An Ohio planning commission (see here)
- A Michigan utility (see here)
- A law firm (see here)
- A Canadian university (see here)
- An Indiana county (see here)
- An accounting firm (see here)
- The San Francisco transportation agency (see here)
According to a recent survey, 48% of businesses have been attacked by ransomware over a 12 month period. And 54 % at least somewhat agreed that their organizations have lost faith in traditional cybersecurity solutions (see here).
Why are ransomware attacks increasing? One reason ransomware attacks are spreading is because fraudulent email containing links or attachments for the unsuspecting user to click on have become much more sophisticated (see here).
Ransomware attacks are not only proliferating, the attacks are becoming more sophisticated and harder to prevent (see here). Ransomware is facing a robust future…Ransomware has evolved into a sophisticated set of attacks that can go far beyond simply shutting down IT operations until money has been paid. These days, wrongdoers are ramping up malware that zeroes in on a company's intellectual property and threatening to release it – or else. (see here)
If a ransomware attack occurs, the FBI recommends that you do not pay (see here).
Protection is important, and strong IT security involved both prevention and early detection is critical in reducing the threat (see here & here). But ransomware cannot be completely eliminated, and Cyber Risk Insurance with full ransomware coverage can provide additional protection for businesses of all sizes. Coverages vary widely and can be tailored to cover the exposures for a particular insured.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber Risk).