Targeted cyber extortion attacks are becoming increasingly common, leaving many businesses across the world suffering financially if they do not comply with the demands of the attacker.
At Stanmore Insurance, we can help you to navigate cyber extortion attacks by providing an initial response plan and guiding you through the recovery process.
What is cyber extortion?
Cyber extortion is a type of cyber attack when the attacker threatens to harm an organisation’s data, systems or network.
This leaves victims in a precarious situation, in which they must pay to prevent the release, alteration or destruction of their assets and regain control after the attack.
What are the different types of cyber extortion?
Some types of cyber extortion include:
- Ransomware – Cyber Criminals will use ransomware and malware to encrypt a victims data, making it inaccessible until a ransom is paid.
- Distributed Denial of Service (DDos) Attacks – Cyber attackers will flood a victims network with internet traffic, causing it to shut down. The attackers will demand a ransom to stop the attack.
- Data Extortion – Cyber attackers will threaten to release stolen information and share it to the public unless a payment is made to recover the data. This is sometimes known as ‘data kidnapping’.
- Email-based Cyber Extortion – The hacker will send you an email threatening to release private information through different channels, such as social media, unless you pay a ransom.
An example of cyber extortion
Cyber extortion attacks can come in a range of scales and they can affect companies and businesses of all sizes.
For example, Netflix became victim to a large-scale cyber extortion attack in which a cyber extortionist claimed to have stolen the upcoming new season of the show ‘Orange is the New Black’ and uploaded some of the episodes to an illegal file sharing service.
The extortionist demanded $50,000 in exchange for not releasing the episodes before the scheduled air date. Netflix and the show’s producers chose not to pay the ransom and the relevant authorities were informed, but the attackers released the episodes anyway.
What is covered under cyber extortion insurance?
Cyber extortion insurance protects your business in the event of ransomware and other malicious attacks, and it usually covers the following:
- Ransom payments – Any payment demanded by the cyber extortionist may be reimbursed.
- Investigations – Tracking and tracing the cyber extortionist.
- Recovering data that has been lost – Finding and restoring files and data that have been lost or stolen.
- Restoring computer systems – Getting computer systems back up and running as quickly as possible after an attack.
- Notification costs – The cost of notifying third parties who might have been affected, such as clients and customers.
Some cyber insurance policies also provide financial support if your business must temporarily close due to a cyber extortion attack. Insurance may also include third-party coverage, which pays for the associated claims made by third-parties who may have suffered losses as a result of a cyber extortion attack against your business.
Cyber extortion coverage can help reduce risk
While the risk of a cyber attack can never be eliminated entirely, having cyber extortion coverage can help reduce both the likelihood of an attack and its potential impact on your business
At Stanmore Insurance, our cyber insurance coverage helps to protect your business from cyber attacks, allowing you to quickly bounce back to doing what you do best. We understand how daunting and financially damaging a cyber extortion attack can be, which is why we work closely with you to understand your needs and ensure you are fully protected if the worst happens. Get in touch with our team of experts today to learn more about how we can help protect your business and reduce the risk of cyber extortion attacks happening in your business.