A new approach to cyber risk can help to reverse the trend in ransomware attacks, according to a claims report from cyber risk firm Resilience. Even as attacks skyrocketed in late 2022 and early 2023, the report revealed nearly 80% of organisations hit by ransomware recovered data and systems without paying a ransom; a marked improvement from current industry standards.
The cost of cyber crime is expected to reach US$10.5trn by 2025, outpacing investment in security and insurance by more than five times. With only 65% of organisations stating that they plan to increase security spending this year, Resilience warns that a new approach to improve cyber resilience is needed. Its 2022 claims report reveals that, by balancing risk acceptance, mitigation, and transfer, organisations are able to significantly strengthen their ability to recover data and maintain business operations in the face of ransomware attacks, without making an extortion payment.
Vishaal Hariprasad, co-founder and CEO of Resilience, said: “We founded Resilience because we believed that the current approach to defending the digital ecosystem was inadequate. By bringing together risk, finance, and security roles which previously operated in silos, we can deliver a completely new approach: cyber resilience. Our clients’ success in mitigating the threat of ransomware validates this approach and spotlights the opportunity for the digital economy to rethink how they approach risk.”
Key findings of the claims report, which examined the full year 2022 through to Q1 of 2023, included an increase in ransomware notices, which grew by 33% into Q3 2022 and then doubled in Q4 2022. This rapid growth held consistent in Q1 2023.
It also found that among all primary claim notices, phishing is the lead point of failure (23.4% of all claims). Risk from third-party vendors is a close second at 22.1% of all claims. Ransomware (17.8%) was the leading cause of loss for claims. Transfer fraud (17%) vendor data breaches (11.8%), and business email compromise (10.4%) followed.
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