Page 20 - Logistics News - December 2021

CYBER SECURITY

Beware the ransomware pandemic

A report by cyber insurer Allianz Global Corporate & Specialty highlights the surge in ransomware
incidents, which could be prevented if companies strengthen their cyber security and controls.

uring the COVID-19 crisis another outbreak providing emergency response services, as well as financial
has happened in cyber space: a digital pandemic compensation, is now the standard.”
Ddriven by ransomware. Malware attacks that
encrypt company data and systems and demand a ransom Cyber intrusion activity globally jumped 125 percent
payment for release are surging globally. in the first half of 2021 compared to the previous year,
according to IT services and consulting firm Accenture,
The increasing frequency and severity of ransomware with ransomware and extortion operations one of the
incidents is driven by several factors: the growing number major contributors behind this increase. According to
of different attack patterns such as ‘double’ and ‘triple’ the FBI, there was a 62 percent increase in ransomware
extortion campaigns; a criminal business model around incidents in the US during the same period that followed an
‘ransomware as a service’ and cryptocurrencies; the recent increase of 20 percent for the full year of 2020.
skyrocketing of ransom demands; and the rise of supply
chain attacks. These cyber risks trends are mirrored in AGCS’ own
claims experience. AGCS was involved in over a thousand
In a new report, cyber insurer Allianz Global Corporate cyber claims overall in 2020, up from around 80 in 2016,
& Specialty (AGCS) analyses the latest risk developments and the number of ransomware claims (90) rose by 50
around ransomware and outlines how companies can percent compared to 2019 (60). In general, losses resulting
strengthen their defences with good cyber hygiene and from external cyber incidents, such as ransomware or
IT security practices. “The number of ransomware attacks distributed denial of service (DDoS) attacks, account for
may even increase before the situation gets better,” says most of the value of all cyber claims analysed by AGCS over
Scott Sayce, Global Head of Cyber at AGCS. “Businesses the past six years.
need to strengthen their controls. At the same time,
in today’s rapidly evolving cyber insurance market, Increasing reliance on digitalisation, the surge in
remote working during COVID-19
and IT budget constraints are
just some of the reasons why IT
vulnerabilities have intensified,
offering countless access points
for criminals to exploit. The wider
adoption of cryptocurrencies, such
as Bitcoin, which enable anonymous
payments, is another key factor in
the rise of ransomware incidents.

Five trends in the ransomware
space
L O GI S T I CS NEWS development of this service has
‘Ransomware as a service’. The

made it easier for criminals to carry
out attacks. Run like a commercial
business, hacker groups sell or rent

18 NO V E MB E R/D E C E MB E R 2021 their hacking tools to others. They
www .l o g ist i csn e w s .c o .z a