Businesses remain hot targets for phishing & ransomware scams

The increased payouts and unique scenarios have led cyber insurers to make changes to policy language have included requiring proof that a business has improved data and network protection. Some insurers are even excluding coverage for specific incidents or costs and setting higher deductibles. (Photo: Jacky/stock.adobe.com)

Phishing scams — typically occurring through compromised email — have exponentially risen since the onset of the pandemic. Whether it’s the result of more employees working from home or that cybercriminals had more time on their hands, the consequence has been an increase in ransomware and insurance claim payouts, with the brunt of the cost being passed onto businesses.

The success of such cybercrimes has only made it more lucrative. Consider that payments for such scams have frequently increased to seven figures. A 2019 Accenture study on the cost of cybercrime pegged malware as the most expensive type of attack for organizations, averaging $2.6 million annually. And the FBI’s 2020 Internet Crime Report claims business losses of $4.2 billion.