Ransomware Attacks Hit Historic High – Forbes Advisor

Ransomware insurance claims from small businesses hit a record high in the first half of 2023, according to Coalition, a company that sells cyber insurance and provides risk management to businesses. Insurance claims between January 1 and June 30, 2023, for ransomware attacks increased by 27% compared to the second half of 2022.

Ransomware is a form of malware designed to encrypt files on a device and render its systems and files unusable. Cybercriminals then demand a ransom in exchange for decryption. Cybercriminals also often threaten to release sensitive data in exchange for ransom. When both tactics are applied, it’s known as “double extortion.”

The average ransom demand was $1.62 million in the first half of 2023, a 47% increase from the previous six months and a 74% increase over the past year, according to the report. Overall business claims made to Coalition increased by 12% in the first half of 2023 compared to the second half of 2022. Ransomware attacks accounted for 19% of all claims reported in the first half of 2023.

Funds transfer fraud increased by 15% in the first half of 2023 compared to the previous six months. Funds transfer fraud is a cyberattack where a hacker redirects funds from your account before or during a money transfer to their account. The average funds transfer fraud loss was more than $297,000.

Other key findings from Coalition’s report include:

• Businesses using Microsoft Office 365 for email were more than twice as likely to have a cyber insurance claim compared to businesses using Google Workspace for email.
• Businesses using Microsoft Exchange for email were nearly three times more likely to have a cyber insurance claim compared to businesses using Google Workspace for email.
• Businesses using Google Workspace for email had a 25% risk reduction for funds transfer fraud claims and business email compromise claims.
• Businesses using Google Workspace for email had a 10% risk reduction for ransomware claims.