Chubb finds ransomware accounts for 40% of manufacturers’ cyber claims in 2019

Ransomware accounts for 40 percent of manufacturers’ cyber claims in 2019 so far, according to a report by Chubb.

Malware claims, which include ransomware, have risen to 18 percent of all cyber claims in 2019 from an average of 12 percent over the past five years. Ransomware accounts for 23 percent of cyber claims for smaller businesses (revenue less than $25 million) in 2019.

The 2019 third quarter edition of the Chubb Cyber InFocus Report, Adapting to the New Realities of Cyber Risks, provides insight into the recent growth of ransomware attacks across industries and underscores best practices companies should take to combat the associated risks.

"Ransomware is not new, but has evolved over time," said Michael Tanenbaum, head of Chubb Cyber North America. "In today's environment, the impact of a company's system becoming inoperable can result in severe and long-term disruption for a business.

“Some ransom demands have grown to the six-and seven-figure range, so it is critical for businesses to understand the increased sophistication of ransomware, what procedures and systems need to be in place to mitigate the risk, and what solutions they need to protect themselves should they experience an attack."

Manufacturing accounts for 23 percent, and professional services is 30 percent, of the total number of ransomware incidents reported to Chubb across all industries through the third quarter. Manufacturing companies are more likely to be targeted because of their need to quickly restore operations, and professional service firms, which rely heavily on email, are often affected because of vulnerabilities associated with phishing attacks. However, ransomware can affect any company, regardless of size or industry.

"As bad actors are continuously changing their attack techniques and increasing the complexity of the ransomware, it's imperative to implement multiple layers of preventative measures to mitigate potential incidents and ensure a reaction plan is in place if an attack occurs," said Anthony Dolce, vice president, cyber lead, Chubb North America Financial Lines Claims.

"By regularly backing up data files and securing those backups offline, properly educating employees, investing in state-of the-art security and antivirus software, and purchasing a comprehensive cyber insurance policy, businesses can be better prepared and protected no matter the threat."

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