Cyber Threats are now Global in Scale
By all accounts, the geopolitical landscape of the early 2020s is more unstable and less predictable than at any other point in near history. The Russo-Ukraine conflict, trade war with China, and after-effects of a global pandemic all contribute to an increasingly precarious position for the United States public and private sectors. One of the largest threats to American business today is global cyber-terrorism which cost nearly $1.8 billion in 2019 and saw a 105% increase between 2020 and 2021, according to U.S. Government statistics. (Source: U.S. Government Accountability Office)
What is Cyber Terrorism?
Cyber terrorism is defined as any technologically-driven attack made with the intent to compromise business operations, information storage protocol, or general corporate/public infrastructure. More often, these attacks are carried out by quasi-national organizations backed by their governments, including Russia and China. Recent examples of cyber attacks in the United States include the 2013 Target data breach by a Ukrainian hacker, the 2017 Equifax data breach by Chinese nationals, and the leak of the Democratic National Committee emails during the 2016 Presidential election by a Russian state-sponsored organization.
Threats from National Actors
China and Russia are large sponsors of international cyber attacks. According to the U.S. Office of the Director of National Intelligence 2021 Annual Threat Assessment, "China presents a prolific and effective cyber-espionage threat, possesses substantial cyber-attack capabilities, and presents a growing influence threat." The Assessment states that "China can launch cyber attacks that, at a minimum, can cause localized, temporary disruptions to critical infrastructure within the United States." The Microsoft Exchange server exploitation in July 2021 was attributed to China, and four Chinese cyber actors were subsequently indicted for theft of trade secrets, intellectual property, and other high-value information. (Source: Cybersecurity & Infrastructure Security Agency)
Russia has also conducted several sponsored cyber-attacks, including the recent NotPetya hack of Ukraine’s business security infrastructure. This attack caused over $10 billion in global economic fallout and directly impacted Mondelez International, a Chicago-headquartered packager of Oreos and Triscuits, among other snack foods. Mondelez lost nearly $100 million in the attack and has spent considerable time rebuilding its brand and reputation. In February 2018, the White House called NotPetya a “reckless and indiscriminate cyberattack” on the part of the “Russian military” and “the Kremlin.” (Source: Chicago Federal Reserve)
Business Response to Cyber Attacks
In the face of increasing uncertainty, American businesses have acquired cyber insurance at a frantic pace. 47% of companies opted for cyber insurance policies in 2020 compared to only 26% in 2016. (Source: U.S. Government Accountability Office)
As demand has increased, cyber insurance policies have also become more institutional in nature, with wide ranges of coverage available and greater flexibility. For example, most cyber insurance policies can now cover many of the indirect costs associated with a data breach or cyber-attack, including lost revenue, crisis consulting, and customer recovery and support programs. Cyber insurance programs also offer greater coverage limits and can accommodate small-scale family-owned to large enterprise businesses.
However, increases in demand have also led to higher prices. The cost of cyber insurance has increased, with more than half of the participants surveyed reporting that their costs increased from 10% to 30% in late 2020. Cyber insurance underwriting requirements have also become more stringent, with businesses often having to meet a greater number of prerequisites for approval.
We expect that these trends will continue and recommend business owners lock in their cyber insurance quotes as soon as possible. (Source: U.S. Government Accountability Office)
As a Business Owner
Proper cyber security is critical for your organization as the threat and nature of cyber exposure evolve. However, even the best software may not be enough to overcome this growing threat.
We recommend considering a cyber insurance policy that can protect the organization from the financial losses related to a cyber-attack. Business owners can use GetCyber to find cyber insurance coverage and obtain high-quality, quick cyber quotes. GetCyber offers several benefits over traditional cyber insurance brokerages, including the ability to:
- Obtain instant quotes from the 6 Top Insurers
- Find up to $3M in Insurance coverage automatically
- Receive a plan with customizable and comprehensive coverage
- 24/7 support
As a business owner, it is up to you to assess the amount of acceptable risk for your firm. While this is no easy task, GetCyber is here to help. Get a quote today by visiting us at www.getcyber.com