Held to ransom: Insurers set to no longer reimburse ransomware attacks - Green Duck

Held to ransom: Insurers set to no longer reimburse ransomware attacks

By David Buist

Held to ransom: Insurers set to no longer reimburse ransomware attacks

Not wanting to be the bearer of more bad news, but…there’s a new global pandemic: ransomware.

Last month, leading global insurer AXA announced that it would no longer be reimbursing people who pay ransoms following a cyberattack and would be removing ransomware repayments from its cyber insurance policies.
While it is important to note that currently this change only affects AXA’s customers in France, the insurance firm’s bold move poses a pressing question: will other insurers follow suit?

AXA’s announcement follows the UK’s former cybersecurity chief’s warning of the uncontrolled escalation of ransomware attacks at the start of 2021 and calls for a change in the law for insurance companies. Indeed, Ciaran Martin claimed that insurers were inadvertently funding cybercriminal activity by reimbursing extortion claims.

“AXA announced that it would no longer be reimbursing people who pay ransoms following a cyberattack”

What is a ransomware attack?

Fraudsters are duping people into parting with their money by setting up bogus charities that claim to support popular or trending causes.

A ransomware attack involves cybercriminals hacking into and seizing control of computer networks, stealing and encrypting sensitive data. They then demand payment to provide software keys to unlock scrambled data and return control of systems to the organisation. Hackers also often threaten to leak sensitive data online – a move that has seen the average ransom payment triple in the last year.

Padlock Keyboard

How can you protect your business from a ransomware attack?

When it comes to unscrupulous cybercriminals, there is no organisation too big or too small that can avoid falling foul of a ransomware attack. Cybersecurity, therefore, needs to be high on the priority list for every business. And there are some key ways to protect your company from cyberattack:

  • Invest in cybersecurity software and implement multiple layers of defence
  • Backup data regularly and robustly
  • Train employees about the dos and don’ts of cybersecurity
  • Keep operating systems and application software updated
  • Conduct hacking testing regularly to identify vulnerabilities

 

At Green Duck – and our specialist cybersecurity company Labsec – we offer a range of cybersecurity and data storage solutions to keep your company, your people and your information protected. Contact me directly on 01284 700015 or email whisper@labsec.co.uk to discuss your unique business needs.