In a startling revelation, Coalition, the pioneer in Active Insurance aimed at thwarting digital risks, has released its 2023 Cyber Claims Report: Mid-year Update. The report exposes a harrowing picture of the evolving cyber landscape in the first half of 2023. According to the data collected, cyber insurance claims have surged by a significant 12% during this period. This surge is attributed to a marked increase in ransomware attacks and funds transfer fraud (FTF).
The report highlights a concerning trend where both the frequency and severity of claims have risen across businesses of all revenue brackets. Particularly, companies with revenues exceeding $100 million have witnessed the most substantial spike, with a 20% increase in claims. Moreover, the severity of these attacks has also intensified, with a whopping 72% increase in claims severity compared to the second half of 2022.
Ransomware attacks have taken center stage, experiencing a shocking 27% increase in claims frequency in the first half of 2023. Notably, the severity of ransomware claims has surged by 61% in comparison to the previous six months. This is an astounding 117% increase over the past year. Cybercriminals are also escalating their ransom demands. The average ransom now stands at $1.62 million. This is a 47% increase in just six months and a 74% jump over the year.
Silver Lining
One silver lining in the report is Coalition’s incredible recovery of stolen funds. That figure? An unprecedented $23 million. Or nearly three times the amount recovered in the second half of 2022. The average recovery for funds transfer fraud claims stood at $612,000 per claim. This constitutes 79% of all FTF losses where recovery was feasible.
Additional significant findings include a 15% rise in FTF claims frequency and a 39% surge in FTF severity, resulting in an average loss of over $297,000. In a positive development, Coalition successfully negotiated ransomware payments down to an average of 44% of the initial demand.
Moreover, the report underlines the importance of the email platform used by businesses in their cybersecurity posture. Google Workspace users were found to be significantly more secure than Microsoft Office 365 (M365) and on-premises Microsoft Exchange users. M365 users were twice as likely to experience a claim compared to Google Workspace users, while on-premises Microsoft Exchange users were nearly three times more vulnerable.
Conclusion
The 2023 Cyber Claims Report: Mid-year Update by Coalition paints a concerning picture of the escalating cyber threats facing businesses in the first half of 2023. The report underscores the need for organizations to prioritize risk management and enhance their security defenses. With proactive partners and suitable cyber insurance coverage, businesses can better prepare for, respond to, and recover from these cyber incidents.
Download the full 2023 Cyber Claims Report: Mid-year Update from Coalition to learn more: https://info.coalitioninc.com/download-2023-cyber-claims-report-mid-year-update.html
Other News: How Many Clients Make Claims on their Cyber Insurance Policies? (Opens in a new browser tab)