In both the insurance and investigative industries, there is a growing trend of cyber attacks and hacking attempts targeting companies, including government agencies. What’s particularly noteworthy is the strategic approach hackers and ransomware attackers employ. They determine the ransom or loss amount based on their perception of the victim’s cyber insurance coverage.
The Hacker’s Strategy Unveiled
This tactic parallels the age-old scenario of a robber demanding, “How much have you got?” when attempting a theft. Similarly, cybercriminals leverage access to emails and systems to assess the victim’s cyber insurance coverage. By studying the victim’s digital footprint, they strategically set the ransom amount, often hovering just below or at the limit of the existing cyber insurance policy.
The double-edged sword of ransom requests
This approach has both positive and negative implications for businesses. On one hand, it places the insurance company in a powerful position to decide the best course of action. They might find it more cost-effective to repair the system rather than paying the ransom. On the other hand, it prevents hackers from demanding an amount exceeding the coverage. If a company has a million-dollar cyber policy and the hacker requests five million, it’s unlikely to be fulfilled. However, if the demand aligns with the policy, the insurance will kick in without additional financial burden on the victim.
Adapting to the Changing Landscape
As a result of these dynamics, the landscape of cyber liability, cyber insurance, and cyber protection is evolving in the realm of business security. Whether approached from the insurance side, focusing on post-incident protection, or the prevention side, aimed at averting losses in the first place, businesses must stay vigilant.
Navigating the Cyber Insurance Terrain
For small and medium business owners, being aware of these changes is crucial. It ensures that you’re not caught off guard, potentially facing a shutdown or financial devastation. Understanding the nuances of cyber threats and the interconnected worlds of insurance and cybersecurity is key to safeguarding your business in an increasingly digital and vulnerable landscape.