The 2021 Global Risks Report published by the World Economic Forum states that the greatest short-term economic threat to society is cybersecurity. The report emphasized that misinformation, cyberattacks, and targeted strikes are the major threats to cybersecurity, with threat actors finding out new ways to engage and breach the security of businesses.
With cyberattacks not showing signs of slowing down, the cyber insurance market is booming, with estimates stating that it may even reach $22.5 billion by 2030. Organizations are aiming to acquire cyber insurance in order to minimize the risk and damages caused by a cybersecurity breach.
Reading the exhaust
Cyber insurance provider Coalition recently observed data from approximately 50,000 of its North American customers to help analyze the profound changes in cybersecurity during the first six months of the year. Coalition compiled their findings in their Cyber Insurance Claims Report, in which they stated that cyber risk is expected to become the most significant risk in the current climate. With an increase in cybercrimes worldwide and in every industry, it is pivotal that cyber risk must be promptly addressed by all businesses.
The report included key statistics to help illustrate the changes in cybercrime during the year so far:
- The first half of 2021 saw a large increase in cybercrime, with business email compromises (BEC) rising by 51% and funds transfer fraud (FTF) growing by 28% over the same period in 2020.
- Ransomware attacks have regained their place as the most used form of cybercrime, and the amount of ransoms has also grown by an estimated 170%.
The increased work-from-home/ hybrid working environment was attributable to an increase in cyberattacks. The Global Risks Report stated that with an increase in online transactions conducted from home and other unsecured networks, cybercriminals were able to easily hack into and gain access to sensitive data of businesses. In fact, the average theft rate has gone up by an astounding 179% during 2021, according to Coalition.
The sudden arrival of the pandemic forced organizations to implement remote work, which saw vulnerabilities present, and with a lack of preparation, organizations suffered losses due to cybersecurity breaches.
No target too small
Despite large-scale companies having more funds and resources for criminals to hack into, it is surprising that small companies are being targeted more frequently. Attacks on organizations housing under 250 employees saw a rise of 57% in comparison with the previous year.
The reason why these businesses seem intriguing to hackers is due to their weaker defenses and an increase in automated tools used by threat actors, which allowed them to make a big profit through attacks on small-scale businesses.
The report concluded by showcasing how organizations that did not put the proper security measures in place were the easier target for cybercriminals and thus suffered greater losses. However, this does not mean that cyberattacks cannot be prevented. By deploying the correct tools and having the proper defenses, managers can ensure that their organization does not fall victim to hackers. The time to act is now.