With data breaches, ransomware and cyber attacks increasing at an alarming rate worldwide, the cyber insurance market is booming as well.
The costs of data breaches run in the millions and take months, if not years, to recover, repair and investigate.
According to an annual HP study released last week, the average annualized cost of cyber crime incurred by a benchmark sample of U.S. organizations was $12.7 million, representing a 96 percent increase since the study was initiated five years ago.
The results also revealed the time it takes to resolve a cyber attack has increased by 33 percent during this same period, with the average cost incurred to resolve a single attack totaling more than $1.6 million.
The numbers make a compelling case for cyber insurance. With about 50 carriers in the country, an increasing number of companies are availing cyber insurance offers.
The best policies cover costs associated with alerting customers, plus forensics, call center setups, consumer identity monitoring, legal fees and a crisis management firm. But that may only dent the disaster. Policies don’t address loss in profits due to customers jumping ship. A policy can’t prevent a marred brand reputation, according to the Huffington Post.
An interesting finding is the important role cyber insurance can play in not only managing the risk of a data breach but in improving the security posture of the company. While it has been suggested that having insurance encourages companies to slack off on security, our research suggests the opposite. Those companies with good security practices are more likely to purchase insurance, according to a Ponemon Institute study released earlier this.
Global companies also are worried about malicious code and sustained probes, which have increased more than other threats. Companies estimate that they will be dealing with an average of 17 malicious codes each month and 12 sustained probes each month, according to the report.
When asked about the level of investment in their organizations’ security strategy and mission, on average respondents would like to see it doubled from what they think will be spent—an average of $7 million to what they would like to spend—an average of $14 million. This may be a tough sell in many companies.
However, our cost of data breach research can help IT security executives make the case that a strong security posture can result in a financially stronger company, the study added.
General Dynamics Fidelis Cybersecurity Solutions announced it is using Carbon Black as a key component of its incident response solution to help customers rapidly detect and remediate data breaches. Bit9® + Carbon Black® is the leader in endpoint threat prevention, detection and response
The United Arab Emirates is gearing up to launch a cyber command within the General Headquarters (GHQ) of the UAE Armed Forces. Sources with knowledge on the matter told Defenseworld
The US and China have launched a war of words over allegations made by a US congressional panel that Chinese government-linked hackers had launched dozens of cyberattacks on American defence contractors. Beijing has flat-out denied the charges, saying they were "fabricated out of thin air
The Chinese Peoples Liberation Army (PLA) founded Cyberspace Strategic Intelligence Research Center at an information center of the General Armaments Department (GAD) on June 26, 2014. The Cyberspace Strategic Intelligence Research Center is an intelligence platform built on research efforts of an information center of the GAD and the wisdom of the experts in various fields
The United States is reportedly facing a shortage of cybersecurity professionals — particularly for positions within the federal government because it does not offer salaries as high as the private sector. According to a study published by the RAND organization, the demand for cybersecurity professionals began to overtake supply in 2007, largely due to increased reports of large-scale hacking, including the leakage of credit card data, attacks on Internet connectivity, and the discovery of "advanced persistence threats" — teams of hackers who go after intellectual property by establishing a persistent presence in the networks of U
Researchers at Blue Coat Labs in California have discovered a malware what they call ‘Inception which first targeted diplomats and government organizations in Russia and later spread to other countries. “A previously undocumented attack framework” is being used to launch highly targeted attacks to gain access to, and extract confidential information from, victims computers, according to Blue Coat
BAE Systems has completed the acquisition of Perimeter Internetworking Corp., which trades as SilverSky, a commercial cyber service provider
McAfee Labstoday predicted that cyber attacks and security will become stealthier and warns malware will surge up to 75 percent in 2015. Cyber espionage attacks will continue to increase in frequency as long-term players will become stealthier information gatherers, while newcomers to cyber-attack capabilities will look for ways to steal sensitive information and disrupt their adversaries, the report said
The Indian state of Goa's government websites were hacked by allegedly Palestinian hackers today. Six websites from various departments were reportedly targeted
The US State Department has shut down its entire unclassified email system after detecting a breach in its computer network. According to reports, the “activity of concern” was detected in the system concurrently with another cyber attack which hit the network at the White House computer network
NATO launched its largest ever multinational cyber defence exercise, “Cyber Coalition 2014” on 18 November. The three-day training event will test the Alliances ability to defend its networks from the various challenges that exist when operating in the contested cyber domain
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