Cyber risks escalate with ransomware on the rise: Munich Re

Global cybercrime costs will reach $13.8t by 2028.

Ransomware continues to be the top risk and loss driver for cyber insurance as annual ransom crypto payments amounted to $1.1b in 2023.

Munich Re reveals in a report that 67% of the manufacturing sector has experienced cyber insurance losses brought by ransomware, followed by business & professional services (61%), retail (61%), healthcare (61%), IT (52%), and finance (30%).

In addition, AI can be utilised in enhancing ransomware-as-a-service (RaaS) models, encouraging a high degree of automation in hacking processes that can lead to individualised attacks, including tailored phishing and email extortion.

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The report also reveals other drivers that lead to loss in cyber insurance such as business email compromise (BEC) and business communication compromise (BCC), data breaches, and supply chain vulnerabilities.

BECs have amounted to $3b in losses, affecting 22,000 victims globally (Symantec), whilst cases doubled in 2023 alone (Verizon).

Supply chain attacks have also doubled in 2023 at 245,000, costing businesses a loss of $45.8b globally.

Following this, data breaches have recorded a global average cost of $4.45m (IBM).