Ransomware demands are up more than 500%, the latest concern for insurers

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Oct 15, 2021 | CYBERSCOOP

Ransomware attacks aren’t just becoming more frequent, they’re getting more expensive.

Scammers demanded an average payment of $5.3 million from hacking victims through the first six months of 2021, though extortion victims paid a median fee in the hundreds of thousands of dollars, according to a new report from the insurer Allianz.

The $5.3 million average represents a 518% increase from the 2020 figure, driven in part by demands to pay up to $50 million after a data breach. The highest demand last year was for $30 million, according to the latest report, which did not identify affected organizations by name. Victims paid an average of $570,000 during the first six months, compared to $312,000 in 2020, Palo Alto Networks said.

The figures, published Thursday by Allianz, represent the latest glimpse into how ransomware attacks are becoming exponentially more expensive as victim organizations look to insurance providers to cover the breach, extortion payments, business interruption and ensuing remediation efforts. Major breaches in 2021 — such as hacks on Colonial Pipeline, JBS and the IT provider Kaseya — have generated more attention on the issue, including a White House summit of

Read More: https://www.cyberscoop.com/ransomware-insurance-costs-allianz/