Press Release

Dec
08

Corporate Cyber Insurance Will Fuel Ransomware Growth in 2018 says WatchGuard

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While the increasing number of publicly disclosed breaches and successful ransomware incidents are driving growth in cyber insurance, there is a risk that this will encourage criminals to target companies with extortion insurance to demand increased payments, believes researchers at WatchGuard Technologies.

In countries that require mandatory breach disclosure, cyber insurance helps cover the costs and sometimes the lawsuits that result from these breaches. But more recently, insurers have promoted optional extortion insurance packages that cover the costs of ransomware and other cyber extortion payments. 

“We find it concerning that insurers sometimes pay ransoms to recover their customers’ data,” says Corey Nachreiner, CTO at WatchGuard Technologies. “While we understand the business decision, insurers currently have no long-term actuarial data for cyber incidents and ransomware. It is possible that paying ransoms will encourage this criminal business model and increase the number of incidents insurers have to handle or the cost of ransoms.”

As most studies show that at least one-third of ransomware victims already pay, smart ransomware authors will target insurers to identify organisations with extortion insurance, and then attack them directly.

“We expect SMBs to continue to adopt extortion insurance in 2018 but cyber insurance should not replace security controls and best practices,” says Nachreiner. “We predict that insurance providers will start to implement guidelines that require companies to have strong security controls in place as a prerequisite. When combined with other layers of security, cyber insurance is a great addition to your cyber security strategy.”

See the WatchGuard predictions videos at: https://www.watchguard.com/uk/wgrd-resource-center/2018-security-predictions

About WatchGuard Technologies, Inc.

WatchGuard® Technologies, Inc. is a global leader in network security, secure Wi-Fi, multi-factor authentication, and network intelligence. The company’s award-winning products and services are trusted around the world by nearly 10,000 security resellers and service providers to protect more than 80,000 customers. WatchGuard’s mission is to make enterprise-grade security accessible to companies of all types and sizes through simplicity, making WatchGuard an ideal solution for midmarket businesses and distributed enterprises. The company is headquartered in Seattle, Washington, with offices throughout North America, Europe, Asia Pacific, and Latin America. To learn more, visit WatchGuard.com.

For additional information, promotions and updates, follow WatchGuard on Twitter, @WatchGuardUK on Facebook, or on the LinkedIn Company page. Also, visit our InfoSec blog, Secplicity, for real-time information about the latest threats and how to cope with them at www.secplicity.org. Subscribe to The 443 – Security Simplified podcast at Secplicity.org, or wherever you find your favorite podcasts.

WatchGuard is a registered trademark of WatchGuard Technologies, Inc. All other marks are property of their respective owners.

 

 

 

Media Contacts

Chris Warfield
WatchGuard Technologies
206.876.8380

Peter Rennison
PRPR
1442 245030

 


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