Cyber Insurance Causes Ransomware Demands to Skyrocket

A new study has revealed that having cyber insurance can have an unexpected consequence: increasing ransomware demands. For individuals and businesses alike, getting hit with a ransomware attack is never fun. These attacks encrypt your hard drive, leaving you with no choice but to pay a ransom just to access your information. The thought of losing all your data is a daunting one, and that's where cyber insurance comes in – as a preventive measure to protect against such threats.

Investing in anti-virus software, regular backups, and cautious web browsing can help minimize the risk of a successful hack. However, for businesses or individuals looking to take their security measures to the next level, cyber insurance is an excellent option. This specialized form of insurance covers your liability for data breaches, providing financial protection against costly damages.

But what's surprising is that having cyber insurance can actually increase ransomware demands in some cases. According to a report by Dutch police officer Tom Meurs, who analyzed 453 ransomware attacks between 2019 and 2021, operators are taking advantage of people who want to be more secure. If they manage to infiltrate your system and discover that you have cyber insurance, they will often raise their prices – significantly.

On average, ransomware operators increase their demands by 2.8 times the original rate. However, in some cases, they can ask for as much as 5.5x the initial amount. This is a staggering increase, and it's clear that businesses with cyber insurance are seen as prime targets by cybercriminals.

But why do ransomware operators take this approach? The report suggests that they check for insurance first before extracting information from their victims. This tells us that businesses with cyber insurance are attractive targets – a "white whale" of sorts, who can provide the hackers with the financial gain they seek.

The implications of this finding are significant. For businesses and individuals with cyber insurance, it's essential to understand the risks involved and take steps to mitigate them. By investing in robust security measures, regular backups, and monitoring their systems for suspicious activity, they can reduce their exposure to ransomware attacks. While cyber insurance can provide valuable financial protection, it's crucial to use it wisely – lest you become a victim of skyrocketing ransom demands.