As hackers target small businesses, ransomware attacks are declining

A new semi-annual cyber-trends report released by cyber-insurance company Coalition says that while small businesses continue to be targeted, overall incidents are down and ransomware attacks are down as claims go unpaid.

According to the latest update to the Coalition’s 2022 Cyber ​​Claims Report, in the first half of 2022, the average cost of a claim for a small business owner increased to $139,000, up 58% from the first half of 2021.

“Across industries, we continue to see high-profile attacks targeting organizations with weak or unsecured infrastructure, exacerbated by today’s remote work culture and companies’ reliance on third-party vendors,” said Katherine Lyle, Head of Claims at Coalition. “Small businesses are especially vulnerable because they often lack resources. It is very important for these businesses to avoid downtime and disruption.”

According to the Cyber ​​Trends semi-annual report, phishing continues to be the primary means used by cybercriminals to infiltrate businesses.

To come up with the report, the Coalition analyzed claims data from more than 160,000 organizations it insured for the first half of 2022.

Both the Coalition and the wider insurance industry saw a decrease in the frequency of ransomware attacks and the amount of ransom demand between the second half of 2021 and the first half of 2022. Ransomware claims dropped from $1.37M in H2 2021 to $896,000 in H1 2022.

Cyber ​​insurers received 50% fewer claims compared to the broader market. The severity of these claims has also decreased, with 45% of incidents resolved free of charge.

“Organizations are increasingly aware of the threat posed by ransomware. They have begun implementing controls such as offline data backup, which allows them to waive ransom payments and recover operations in other ways,” said Chris Hendrix, head of incident response at the Coalition. “As ransomware dwindles, attackers are turning to trusted methods. Phishing, for example, has skyrocketed and continues to grow.”

Other key takeaways:
● Phishing causes the majority of cyber incidents, accounting for 57.9% of reported claims,
● Cyber ​​gangs have built a thriving business,
● Reports of money transfer fraud (FTF) remain stable thanks to phishing and
● Microsoft Exchange has become a persistent vulnerability.

The data in this report is a collection of claims and incident data, including the most high-profile claims and cyberattacks that continue to pose risks to all businesses.


Do you want to be in the know?

Get the latest insurance news
sent directly to your inbox.

Previous Post

Road deaths hit 16-year high in first six months of 2022

Next Post

Flood waters in Western Alaska receded after hurricane

Leave a Reply

Your email address will not be published. Required fields are marked *