Companies Are Coughing Up Ransom To Recover Their Data

The fourth Hiscox Cyber Readiness Report reports that six per cent of the 5,569 firms polled, and one in six of those attacked, had surrendered by paying out ransom fees following a cyber attack. 
 
The highest losses for a single firm targeted with a ransom demand hit £40.2 million. The report also showed that total cyber losses surged 50 per cent to nearly £1.4 billion in 2019.
 
Hiscox warned there were new cyber threats emerging from the coronavirus crisis, with a ramp-up in so-called phishing scams and as staff and companies are leaving themselves vulnerable due to less-secure home working computers.
 
The Report surveyed a representative sample of private and public sector organisations in the US, UK, Ireland, Belgium, France, Germany, Spain, and the Netherlands. Each firm was assessed on its cyber security strategy and execution. 
 
The Report says that UK businesses are now 15 times more likely to suffer a hacking incident rather than a fire or theft with one firm paying out £71 million.
 
Among the key findings:
 
  • Cyber losses soar: Total cyber losses among the study group rose from $1.2 billion to nearly $1.8 billion. The highest reported cyber losses were by a UK financial services firm, at $87.9 million. The highest loss from any one cyber event was $15.8 million, involving a UK professional services firm. The most heavily targeted sectors were financial services, manufacturing and technology, media and telecoms (TMT). Irish firms suffered the highest median costs, at over $103,000.
  • Held to ransom: More than 6% of total respondents, or one in six of those attacked, paid a ransom following a malware attack. The highest losses reported by any single company targeted with ransomware, and which could include other cyber events, topped $50 million. 
  • Upping their game: The number of firms achieving ‘expert’ status in our cyber readiness model increased from 10% to 18%. This follows two years while progress stalled. US and Irish firms came out best with 24% ranked as experts.  France was the biggest improver with 18% of firms ranked as experts, up from 6%. Overall, twice as many firms responded to a breach this year by adding new security and spending more on employee training.
  • Pace of cyber spending accelerates: The average spend on cyber security rose from $1.47 million to $2.05 million, a rise of 39%. French firms spent the most with an average of $3.1 million. Spanish and US firms were not far behind, at $2.6 million and $2.4 million respectively. The  average spending by British business rose from just under $900,000 to $1.5 million. 
Currently cyber losses per firm have risen nearly six-fold, from an average of £8,041 a firm to £45,832. UK firms are now 15 times more likely to suffer a cyber-attack than a fire or theft, the report suggests.
 
The biggest reported cyber loss among firms in the eight countries surveyed was suffered by a UK financial services firm, at £71 million. The report also uncovered that the highest loss from any one cyber event was £12.7 million, involving a UK professional services firm.
 
While cyber attack losses rose last year, the Hiscox report that firms are increasing their defences against hackers, with spending on cyber security rising 39 per cent. “The number of businesses that have paid a ransom following a malware infection is chilling... There is, however, one very positive message from this year’s report – there is clear evidence of a step-change in cyber preparedness, with enhanced levels of activity and spending'  the Hiscox Cyber chief executive commented
 
Hiscox also warned there were new cyber threats emerging from the coronavirus crisis, with a ramp-up in phishing scams and as staff and companies are leaving themselves vulnerable due to less-secure home working computers. "There is clear evidence of a step-change in cyber preparedness, with enhanced levels of activity and spending. Take-up of standalone cyber insurance remains patchy, but this report is a reminder that firms are many times more likely to have a cyber incident than either a fire or a theft for which most automatically insure," said a Hiscox spekesman.
 
 
Hiscox:      RTE:      WalesOnline:    Hull Daily Mail:    Cambridge News: 
 
You Might Also Read:
 
US Bombarded With Ransomware:
« Amazon Web Services Fights Off Massive DDoS Attack
Darktrace Wins Fortress Cyber Security Award »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

Jooble

Jooble

Jooble is a job search aggregator operating in 71 countries worldwide. We simplify the job search process by displaying active job ads from major job boards and career sites across the internet.

DigitalStakeout

DigitalStakeout

DigitalStakeout enables cyber security professionals to reduce cyber risk to their organization with proactive security solutions, providing immediate improvement in security posture and ROI.

XYPRO Technology

XYPRO Technology

XYPRO is the market leader in HPE Non-Stop Security, Risk Management and Compliance.

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

Authentic8

Authentic8

Authentic8 transforms how organizations secure and control the use of the web with Silo, its patented cloud browser.

Practice Labs

Practice Labs

Practice Labs is an IT competency hub, where live-lab environments give access to real equipment for hands-on practice of essential cybersecurity skills.

ZenGRC

ZenGRC

ZenGRC - the first, easy-to-use, enterprise-grade information security solution for compliance and risk management - offers businesses efficient control tracking, testing, and enforcement.

Resecurity, Inc.

Resecurity, Inc.

Resecurity is a cybersecurity company that delivers a unified platform for endpoint protection, risk management, and cyber threat intelligence.

Anomali

Anomali

Anomali provides a threat intelligence platform for businesses to defend against today’s cyber security threats.

Volexity

Volexity

Volexity is a leading provider of threat intelligence and incident suppression services and solutions.

CounterCraft

CounterCraft

The CounterCraft Cyber Deception Platform fits seamlessly into existing security strategies and delivers high-end deception for threat hunting and threat detection.

DeepCyber

DeepCyber

DeepCyber supports its customers, with an “intelligence-driven” approach, to improve their proactive detection and response "capability" of cyber threats.

Lewis Brisbois

Lewis Brisbois

Lewis Brisbois offers legal practice in more than 40 specialties, and a multitude of sub-specialties including Data Privacy & Cybersecurity.

Privacyware

Privacyware

Privacyware's ThreatSentry combines a state-of-the-art Web Application Firewall and port-level firewall with advanced behavioral filtering to block unwanted IIS traffic and web application threats.

Kinetic Investments

Kinetic Investments

Kinetic Investments provide entrepreneurs with the capital and support required to transform their vision into a success, in return for shared ownership of the company.

Consistec Engineering & Consulting

Consistec Engineering & Consulting

Consistec Engineering & Consulting GmbH is an information technology and services company offering solutions for monitoring the security of IT and OT infrastructure.

Guernsey

Guernsey

Guernsey provides a wide range of engineering, architecture and consulting services to multiple markets, including cybersecurity consulting and CMMC certification.

Certihash

Certihash

Certihash have developed the world’s first blockchain empowered suite of information security tools based on the NIST cybersecurity framework.