Financial loss from cyber activity rises almost six fold
Posted by: Westcor International

According to Hiscox annual Cyber Readiness Report, the financial impact on those affected by a cyber event rose nearly six-fold.

 

[https://www.hiscox.co.uk/sites/uk/files/documents/2020-06/Hiscox_Cyber_Readiness_Report_2020_UK.PDF]

 

You may remember our article on protecting lenders against fraud, particularly at times like this, where lockdown has enabled cyber criminals to exploit opportunities to break down vulnerable systems. The launch of Hiscox annual Cyber Readiness Report, highlights some frightening statistics but in certain times - this insightful study was undertaken before the coronavirus pandemic.

 

The good news is that Britain is ahead of its European counterparts with the 'lowest number of breaches and highest ratio of incidents to breaches, suggesting best at thwarting attacks'. But the most frightening statistics are those around the scale of losses. Whilst there are fewer targets, with the proportion of those firms reporting a cyber security event down from 61% to 39% in the past 12 months, the losses are increasing with the highest reported annual cyber loss from a UK Financial Services firm at almost £80m.

 

The report highlights the main breach and risk is Ransomware, where Hiscox believes that sophistication from hackers is ever evolving. Ransomware is a virus which effectively locks businesses out of their own computers and networks. The breach is likely to have occured via a virus or an email. Criminal organisations demand a ransom to unlock them. However the upside is that many more businesses are ensuring their employers are trained to spot any potential attack. 

 

In essence, Hiscox View is a good summary of this report (see below). As insurers of land and property, we recommend that any opportunity to protect your business from potential fraud is worth the investment. This report is well worth a read!

 

Hiscox view

"We are seeing hackers’ ransomware techniques evolve. Typically in larger attacks there are two distinct phases after the initial infection. The first phase is lateral movement. This is where attackers look for valuable assets (e.g. finance data) and assess the size of the target to set the ransom amount. The second phase is ransomware attack. This often happens at the weekend when there is less chance to react and when hackers can cause the most damage. There can typically be a period of one to three weeks between these two phases. Companies with good detection capabilities can stop the attack in this time and therefore suffer shorter outages, lower overall costs and less impact to business."

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