Ransomware: A Growing Cyber Threat Costing Billions

Let’s talk about ransomware and cyber attacks; this is a significant issue affecting businesses across the country, as well as individuals and even family offices with substantial holdings. So, let’s take a closer look at what we’re dealing with here. Firstly, let’s discuss the financial impact of ransomware. It has cost a staggering $449 million, almost half a billion dollars, solely in extortion payments related to ransomware attacks.

Now, how does ransomware work? The hackers target companies’ systems, exploiting vulnerabilities. Here’s where it gets concerning: all the computers in your company, every device on your desk, mobile phones, and tablets, are connected to the internet. If a hacker identifies a device lacking proper antivirus software, firewalls, or email protection, or if someone using that device clicks on the wrong link or opens a malicious email, the hacker gains access. Once inside, they can infiltrate all the other computers in your network. Their modus operandi is to lock down these systems, denying you access to your crucial business data. Given the high reliance on computers for running businesses, this can be devastating. And when you’re left without access to your critical systems, that’s when they make their move – they demand a ransom, typically ranging from $50,000 to $100,000, to unlock your systems. Unsurprisingly, many businesses have paid these ransoms, amounting to half a billion dollars last year alone.

So, what can you do to prevent such attacks? Cyber insurance and robust cyber defenses are essential. Experts suggest that if you have cyber insurance, prompt communication with your insurance company is vital if you suspect any hacking or cyber attack. The sooner you report it, the better, as delays may lead to questions and reduced response time, according to insurance companies. It’s crucial to establish communication with your insurer early on; otherwise, they might have to start the process from scratch and calculate losses differently.

In conclusion, ransomware is a severe threat to businesses and individuals alike. Taking proactive steps such as investing in cyber insurance and implementing robust cyber defenses can significantly reduce the risks and consequences of these attacks. Promptly reporting any suspicious activities to your insurance company is crucial for a timely and effective response.

Don’t leave your business vulnerable to cyber attacks.

Get a quote for cyber liability insurance from Risk Coverage.

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