Coalition, a provider of cyberinsurance, today published a report showing a 12% increase in claims made in the first half of this year—driven largely by a spike in ransomware attacks and funds transfer fraud (FTF).
The report also noted that organizations with more than $100 million in revenue saw both the largest increase (20%) in the number of claims and the total amount of damages (72%) year over year. Cybercriminals have increased their demands to an average of $1.62 million, a 74% increase over the past year.
Chris Hendricks, head of incident response for Coalition, said the report suggested that there is a resurgence in ransomware activity as cybercriminals adjust their tactics and techniques.
However, despite this increased level of activity, in many cases, the insurance carrier was able to recover the funds used to ransom data, he noted. Overall, the report found the average recovery amount was $612,000 per FTF claim, representing 79% of all FTF losses in instances where recovery was possible. Overall, FTF claims frequency increased by 15% in 1H 2023, and FTF severity increased by 39% to an average loss of more than $297,000.
The discrepancy between initial demand and payment can be attributed to negotiations. On average, Coalition reported ransomware payments down to an average of 44% of the initial amount demanded.
All funds recovered were given back to policyholders. The key to recovering funds once payment is made is to involve carriers that have developed expertise in this area as soon as possible, said Hendricks.
The report also noted that businesses using Google Workspace for em ..
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