DEC-JAN 2018CIOAPPLICATIONSEUROPE.COM8IN MYOPINIONybercrime is a fast growing, global business. 80 percent of global businesses suffer from a cyber breach each year and total damage to the global economy could reach $400 billion in 2017. Understanding the causes of cyber loss is critical to how businesses can think about both the prevention of attacks and the cure should they occur. Major data breaches and more recently, audacious Distributed Denial of Service (DDoS) attacks exploiting the Internet of Things (IoT), are the types of cyber intrusion that are most likely to capture headlines. But it is cyber extortion and ransomware that is one of the fastest growing cybercrimes, a trend that is captured by AIG EMEA cyber claims statistics from the period between 2013 through to September 2016.Encryption ransomware extortion claims accounted for 16 percent of claims during that period, with a further 4 percent of claims relating to other cyber extortions. Paying the PricePeople are sometimes surprised at how small some of the ransom demands are.Nevertheless, given the high frequency of attacks, extortion is a lucrative and relatively straightforward way of accessing `fast cash' for cyber criminals. Malicious actors are thought to have generated around $325million in revenue over the past three years by using the CryptoWall code, according to a research by the Cyber Threat Alliance, while the Cryptolocker gang made over $30million in 2015 using relatively simple ransomware. An explosion in different types of ransomware deployed in 2016 suggests that this form of cyberattack is only going to become more frequent. In the cases of cyber extortion, claims severity depends on the type of organisation, the level of business CData breach by hackers14%Other cyber extortionsNote: Figures may not add up to 100% due to roundingEncryption ransomware extortionOther virus/malware infectionsPhysical loss or theft of information assets (e.g. loss of laptop)Data breach due to employee negligence (e.g. sending wrong data)Legal/regulatory proceedings based on violation of data privacy regulationsBusiness interruptionImpersonation fraudSystem failure/outageOther16%4%10%10%8%7%6%6%4%4%4%9%Other security failures/unauthorised accessDenial of service attacksCyber claims received by AIG EMEA (2013-2016) - By typeBEHIND THE NUMBERS ­ UNDERSTANDING CYBER LOSSES MARK CAMILLO, HEAD OF CYBER, EMEA, AIG
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