{"id":22594,"date":"2024-10-10T19:07:35","date_gmt":"2024-10-10T19:07:35","guid":{"rendered":"https:\/\/www.insurance-canada.ca\/?p=81868"},"modified":"2024-10-10T19:07:35","modified_gmt":"2024-10-10T19:07:35","slug":"severity-of-ransomware-attacks-increased-68-in-first-half-of-2024-coalition-cyber-claims-report","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/10\/10\/severity-of-ransomware-attacks-increased-68-in-first-half-of-2024-coalition-cyber-claims-report\/","title":{"rendered":"Severity of Ransomware Attacks Increased 68% in First Half of 2024: Coalition Cyber Claims Report"},"content":{"rendered":"

2024 mid-year update also examines impacts of risk aggregation events<\/h3>\n

Ransomware claims severity spiked by 68% to an average loss of $353,000 throughout the first half of 2024<\/strong><\/em><\/p>\n

San Francisco, CA (Oct. 9, 2024) \u2014 Coalition, the world\u2019s first Active Insurance provider designed to prevent digital risk before it strikes, has published its 2024 Cyber Claims Report: Mid-year Update<\/em><\/strong>, which details emerging cyber trends and their impact on Coalition policyholders throughout the first half of 2024. The report found that ransomware claims severity spiked by 68% to an average loss of $353,000.<\/p>\n

\u201cAlthough the frequency of using ransomware as an attack strategy actually decreased this half, we saw a marked spike in the severity and demand amounts, especially those associated with the Play and BlackSuit ransom variants,\u201d said Rob Jones, Coalition\u2019s Head of Claims. \u201cDespite the increase, we were able to cut ransom demands in half through successful negotiations by our affiliate Coalition Incident Response, but the facts remain clear: the use and impact of ransomware remains as volatile as ever.\u201d<\/p>\n

While high ransomware demands came back in vogue, funds transfer fraud (FTF) saw a notable decrease in both frequency (2%) and severity (15%). Even with this decline, Coalition successfully clawed back $10.8 million in fraudulent payments on behalf of policyholders.<\/p>\n

The Mid-year Update<\/em> also addressed the notable increase in material cyber risk aggregation events that occurred during the first half of the year. Attacks on Change Healthcare and CDK Global occurred in 1H \u201924 resulting in widespread third-party business disruption to larger SMBs and mid-market companies. Nearly 23% of healthcare businesses with more than $100 million in revenue were impacted by the Change Healthcare attack, as were 11% of those organizations with between $25 million and $100 million in revenue. Separately, nearly 75% of auto dealers with more than $100 million in revenue were impacted by the CDK Global ransomware event.<\/p>\n

\u201cAs third-party risk continues to grow and aggregation events become part of the business lexicon, it\u2019s equally important to spotlight how Coalition continues to take an active role in risk mitigation for policyholders,\u201d continued Jones. \u201cWe engage policyholders upfront to strategize ways to minimize business disruption, looking for alternative ways to help them solve near-term cyber risk problems, accomplish their business goals, and minimize the overall financial impacts of these cyber events through proactive response.\u201d<\/p>\n

Other key findings from the report include:<\/strong><\/h4>\n