Status: 10/13/2021 10:34 a.m.
Companies that are essential for the economy and society could be more affected by hacker attacks in the future. Allianz warns of this in its new “Cyber Report”.
The number of hacker attacks in the first half of 2021 alone rose by 125 percent compared to the previous year – fueled by the corona pandemic, which has shifted the lives and work of millions of people to digital. This emerges from the “Cyber Report” published today by Allianz. In May, for example, hackers paralyzed the systems of the US gasoline supplier Colonial Pipeline, which temporarily restricted the gasoline supply on the entire US east coast.
Such attacks could hit companies that deliver essential goods for the economy and society even more frequently in the future. Germany’s largest insurer expects that global supply chains will therefore also be increasingly affected by such attacks. Attacks on supply chains are the “next big trend”, says insurance manager Jens Krickhahn. Cyber insurer Allianz Global Corporate & Specialty (AGCS) analyzes the latest risk developments relating to ransomware and outlines how companies can strengthen their defenses through good cyber hygiene and IT security practices. Because the attacks are now much better organized, and hackers have refined their tactics and their business model.
Up to $ 50 billion in ransom
In addition to companies that are active in sensitive areas of the economy, another goal is IT service providers who are in contact with a large number of their customers’ computers through their systems. This makes it all the easier for malicious software to infiltrate various systems and companies, according to the experts. If ransomware is smuggled into a company, the hackers use this software to encrypt all data of the attacked company and charge large sums to make the systems accessible again. A common method is to send emails with encryption software in an attached file.
Recently, the sums for decrypting the files have risen to enormous heights: in 2020 there were already claims of 30 million dollars. “Nowadays we are already seeing claims amounting to 50 million dollars,” said Allianz manager Krickhahn. Law enforcement agencies around the world generally advise against paying ransom because “even if a company decides to pay a ransom, the damage has already been done,” the Cyber Report said.
It is easy for attackers
Above all, the experts cite the increase in work shifted to digital during the Covid 19 pandemic and IT budget restrictions as reasons for the sharp increase in hacker attacks. The weaknesses in the IT area would have increased, especially due to insufficient budgets, and criminals would find numerous access points that they could exploit. And the widespread acceptance of cryptocurrencies like Bitcoin, which enable anonymous payments, is another key factor in the increase in ransomware incidents.
The experts fear that the situation will not improve anytime soon: “The number of ransomware attacks can even increase before the situation improves,” says Scott Sayce, Global Head of Cyber at AGCS. Groups like Evil and Darkside are a big problem because they are run like a commercial company. The groups sell or rent their hacking tools to others and also offer a range of support services.
Simple measures would go a long way
Therefore, in addition to the sums extorted, the effort to restore blocked systems is also increasing. The AGCS experts cite analyzes that show that the average total cost of recovery and downtime of a blocked system more than doubled in the past year compared to 2020, from a good 761,000 to 1.85 million US dollars.
According to the AGCS experts, many cyber attacks could be averted or at least the damage limited. “Eighty percent of the damage is due to simple errors,” says AGCS manager Michael Daum. As an example, he cites servers with outdated operating systems and corresponding security gaps. Rishi Baviskar, Global Cyber Experts Leader at AGCS Risk Consulting, adds: “If companies adhere to best practice recommendations, there is a good chance that they will not fall victim to ransomware. Numerous security gaps can often be closed with simple measures . ” In addition, companies not only have to focus on prevention, they also need “digital alarm systems” in order to be able to recognize and stop a hacker attack once it has started.