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2017 - Record year for Cyber claims

2017 - Record year for Cyber claims

According to research by American Internation Group (AIG), 2017 was a record breaking year for cyber claims with more reported than the total for the previous 4 years.

26% of cyber claims came from ransomware, with other common breach types including hackers, security failure/unauthorised access, impersonation fraud and employee negligence.

AIG cite 2017 as the year of the sophisticated, systemic malware and ransomware attacks, including WannaCry and NotPetya. Many losses were significant to business with much of the financial impact being a balance sheet loss.

Whilst ransomware losses only generated payments of around £112,000, total economic losses associated with WannaCry are estimated at £6bn with the majority of losses not insured.

They warned that the new GDPR rules would become another tool for negotiation by extortionists that will threaten to compromise an organistaion's data unless a payment is received, knowing that the cosequences could be more significant under the new regine.

It is anticipated that companies will be more inclined to report breaches, leading to an increased impact on the volume of cyber claims. This was seen in the US after state breach notification laws came into effect.

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