"New Corvus Insurance Data Reveals Ransomware and Fraudulent Funds Transfer Represent More Than Half of All Claims"
Corvus Insurance published the findings of its third Corvus Risk Insights Index, which is a compilation of industry trends and data analysis. The findings of the report are drawn from data sources used by Corvus to power its underwriting and risk mitigation measures that help its policyholders in improving their cybersecurity posture. The company's proprietary Information Technology (IT) security scanning technology and claims reporting are among these sources. The report compares the top cyber risks in the ever-changing threat landscape. Corvus discovered that Fraudulent Funds Transfer (FFT) continues to cause significant losses for organizations, accounting for 36 percent of all claims in Q3 2022. FFT refers to an attack in which threat actors use social engineering techniques to trick employees or vendors into transferring funds to the wrong accounts. In 2022, FFT and ransomware are leading causes of cyber loss, accounting for more than half of all claims combined. The rising number of FFT incidents indicates a continued vulnerability to Business Email Compromise (BEC). Although the proportion of ransomware incidents targeting the US decreased in early 2022, average claim costs remained high, nearly three times that of an FFT claim. FFT accounts for 70 percent of all BEC-related claims, demonstrating that it is the most efficient method for threat actors to monetize social engineering attacks. BEC accounted for more than 4 in 10 claims in H2 2021, rising by about 10 percent to 45 percent in H1 2022. According to Corvus, third-party breaches increased by 66 percent in 2022, with a 20 percent increase in the share of third-party ransomware attacks. While there were fewer ransomware claims in the first half of 2022, a higher percentage of claims involved data exfiltration, a tactic used to gain leverage over victim businesses. The threat of stolen data extends beyond the victim's IT system, as it can harm an organization's brand reputation and increase liability for sensitive information exposure. This article continues to discuss key findings from Corvus Insurance's third Corvus Risk Insights Index.