Ransomware Claims Drive Severe Losses as Cyber Threats Surge in 2024

Ransomware continues to dominate cyber insurance claims, as highlighted in Resilience’s ‘Midyear 2024 Cyber Risk Report.’ Nearly two-thirds of ransomware claims result in financial loss, with the severity of these claims surging by 411% from 2022 to 2023. Although only a small percentage of clients paid extortion fees, the costs of recovery from ransomware attacks have increased substantially. The report also emphasizes that third-party risks, especially those linked to mergers, acquisitions, and vendor dependencies, are key factors in the growing frequency and severity of these claims. Vendor-related risks accounted for 40% of claims in early 2024, with the trend expected to rise.

Additionally, Business Email Compromise (BEC) attacks, while less publicized, remain a steady and increasingly severe threat. The findings underscore the critical need for companies to strengthen their cyber defenses and vendor management practices to mitigate these escalating risks.