Incidences of data theft continue to stream through and virtually nobody seems to be immune from any form of cyber risk. Data theft is the leading source of loss for insurers that cover cyber damages. In India, cyber insurance is still in the nascent phase of its growth, yet cyber risks continue to evolve at a rapid pace. With each passing year, cyber insurers have to contend growing source of losses as cyber attackers are turning to ransomware. This is widely due to the fact that ransomware is a potentially easier and more lucrative cyber-attack method. Over the years, the number of ransomware attacks only seem to be increasing. And as far as cyber attackers are concerned, the wide availability of ransomware on the dark web makes things easier. The recent estimates by RMS Cyber Risk Outlook Report outlined the fact that the ransomware extorted in 2017 exceed five billion dollars worldwide, a 15-fold increase over the previous two years.
How Ransomware Works?
Ransomware infiltrates into computer networks and disables servers or locks up data until a ransom is paid. WannaCry and NotPetya are some of the most common ransomware that can plague networks with high standards of security. It has the destructive ability to scale and to cause systemic loss to thousands of computers within a network. The perpetrators who initiate the ransomware attack, disable servers and then attempt to extort a ransom from the victim company in return for sensitive information. When a ransomware attack takes place, it places the victim in an ethical dilemma — is it ethical to pay a ransom and fuel this crime, or should the company and the other stakeholders take the hit? This is because it is often cheaper to pay the ransom than rebuild whole IT systems. So the businesses are faced with the hard choice of whether to take the moral high ground or focus on the interests of the company’s shareholders? Moreover, the types of ransomware are increasing by the day coupled with the growing sophistication.
What Does the Future for Ransomware Look Like?
Looking forward, ransomware may overtake data theft as the main source of loss from cyber-attacks. However, as the number of ransomware increases, there are promising signs that data breaches at the smaller end of the scale are decreasing. Without a doubt, the implementation of sound cybersecurity processes will reduce the incidences of ransomware attacks considerably. However, if cyber attackers want to attack intentionally, they will, with increasing armoury of tools and techniques.
Hence, as individuals who carry out numerous transactions online, the best thing to do is invest in a Cyber Insurance policy or Digital Insurance. That way, you can stay financially protected against the potentially huge losses inflicted by ransomware attacks. The Bajaj Allianz Individual Cyber Safe Insurance offers a wide coverage against cyber-attacks like ransomware, email spoofing, phishing, ID theft, data breach and much more. To buy or know more about Bajaj Allianz Individual Cyber Safe Insurance, visit Finserv MARKETS.
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