Cyber-attacks soar, firms rush towards insurance

Cyber attacks driven by ransom demands are on the increase as criminals seek to cash in on the soaring values of cryptocurrencies according to a new report.

The 2017-2018 Global Application and Network Security Report from cyber security company Radware find that reported ransom attacks surged in the past year, increasing 40 percent from the 2016 survey. Half of the companies surveyed suffered a financially motivated attack in the past year.

Many firms are panicking as cyber-attacks and regulatory fines threaten profits and are turning to insurance to cover their mounting losses. Many firms feel like they’re under siege as the tools at the hackers’ disposal seem to be getting more, not less, powerful.

“The rapid adoption of cryptocurrencies and their subsequent rise in price has presented hackers with a clear upside that goes beyond cryptocurrencies’ anonymity,” says Andrew Foxcroft, regional director for Radware UK, Ireland and Nordics. “Paying a hacker in these situations not only incentivizes further attacks, but it provides criminals with the vital funds they need to continue their operations.”

Insurance brokers hoping to differentiate themselves in the marketplace should look to cybersecurity as a great opportunity.

The Allianz Risk Barometer 2018 report reveals that cyber incidents remain a top threat with 38% of responses for the third year in a row for South African businesses. Business interruption (BI) second at 34%, and changes in legislation & regulation is in third place at 29%/ number 5 in 2017. These are the key findings of the seventh Allianz Risk Barometer, which was published on 16 January 2018 by Allianz Global Corporate & Specialty (AGCS). The 2018 report is based on the insight of a record 1,911 risk experts from 80 countries.

The report unveils two new South African business threats that have emerged as part of the top 10 list, which is climate change/ increasing the volatility of weather and loss of reputation or brand value, both at 16% both at #8. These new threats are not surprising, especially given the extreme weather patterns that have resulted in frequent droughts and floods affecting the country.

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