Ransomware Attacks are Costing You, Even If You Haven’t Made a Claim

Ransomware is malware software that typically allows for the perpetrator to enjoy financial gain through cyber extortion of the victim. Criminals may conceal links to ransomware in apparently normal emails or web pages. Once activated, ransomware prevents users from interacting with their files, apps, or systems until they have paid a ransom, typically in the form of an anonymous currency like Bitcoin. When a business is plagued with ransomware, there are two options: pay the ransom or restore the threatened data by using backed-up files. If the company does not have adequate backups, it is left with the option of making a payment.

Many experts are realizing that ransomware is one of the biggest threats to businesses this year. Over the last few years, this malware tactic used against businesses has increased substantially, and businesses who are targeted are not the only ones noticing. In fact, cyber insurance companies have noticed the increase in claims made on ransomware, which has led to the increase in premiums being paid by all of the insureds.

These ransomware attacks have become so frequent that it has led to a widespread increase in cyber insurance rates, up to a 25% increase over the prior year, according to Reuters. Hackers have been doing better due diligence when it comes to choosing their targets by selecting those who are more vulnerable. A study found that the average ransomware demand tripled in cost from the year prior to a staggering $41,198.

Cyber insurance rates are increasing to cover the costs associated with the increase in ransomware attacks and the significant increase in the payment being demanded. One way that these insurance companies are looking to control the cost is playing with the idea of separating ransomware coverage from other forms of cyber insurance. Business owners definitely need to stay up to date on the coverage of ransomware by your insurance company as this is a rapidly changing coverage area.

What can you do to limit the cost to your company regardless of skyrocketing insurance rates? The number one thing that you can do is to have a robust backup system that is constantly updating the information which is collected from your business network and to have that stored backup data saved to more than one place – one local and one in the cloud.

LibertyID is the leader in identity theft restoration, having restored the identities of tens of thousands of individuals without fail. If you retain personal information on your customers, now it is the time to get data breach planning and a response program in place with our LibertyID for Small Business data breach preparation program. With LibertyID Enterprise you can now add value to existing products, services, or relationships by covering your customers, employees, or members with LibertyID’s fully managed identity theft restoration service—at a fraction of our retail price—with no enrollment and no file sharing. We have no direct communication with your group members–until they need us.

Call us now for a no obligation proposal at 844-411-LIBERTY (844-411-5423).