What You Need to Know About Ransomware Settlements & Cyber Insurance

Most businesses are aware of the dangers of cybercrime, but still aren’t taking the necessary steps to protect themselves Cyber Insurance. This is often because they don’t think it will happen to them or because they don’t understand the full extent of the threat. 

One of the most common cybercrimes is ransomware. Ransomware is a type of malware that encrypts your files and demands a ransom in exchange for the decryption key. Ransomware can have a devastating impact on individuals and businesses, as it can lead to the loss of important data and cause significant financial damage. In some cases, ransomware attacks can even result in the death of people, as was the case with the WannaCry outbreak in 2017. 

Ransomware has been on the rise in recent years, due largely to the availability of powerful encryption algorithms and the increased use of bitcoin as a payment method. Some of the most popular ransomware threats include Cryptolocker, Locky, SamSam and Petya/NotPetya. These malware variants have caused billions of dollars in damages and have had a major impact on healthcare, government and business organizations around the world. 

Impacts of Ransomware Attacks

There are a number of ways that ransomware can impact businesses:

1. Ransom payments can be expensive, and many companies cannot afford to pay them.
2. Ransomware can lead to the loss of important data, which can be costly to replace.
3. Ransomware can cause significant downtime, as businesses will often have to halt operations while they deal with the attack.
4. Ransomware can damage a company’s reputation, as customers may lose trust in the organization if their personal data is compromised

Steps Businesses Can Take to Protect Themselves From Ransomware

While it is almost impossible to fully protect yourself from cyberattacks, you can take steps that will reduce the chances of it happening and therefore, avoid paying ransomware settlements.

Here are some of the steps:

1. Educate employees about the dangers of cybercrime and the importance of cybersecurity.
2. Implement strong security measures, such as firewalls, intrusion detection systems and anti-virus software. Consider investing in resources like FortiMail, which offers your business protection against threats coming in through e-mail.
3. Regularly back up data to an external drive or cloud storage service.
4. Disable macros in Microsoft Office applications.
5. Do not open e-mail attachments from unknown senders.
6. Do not click on links in e-mail messages from unknown senders.

However, if after all your precautions, you still fall victim to a ransomware attack or any other type of cyberattack, then having cyber insurance may be your best chance at survival. With about 2,474 ransomware attacks registered in 2020 alone, completely avoiding attacks may be unrealistic. Cyber insurance helps you prepare for the aftermath of an attack.

What Is Cyber Insurance?

Cyber insurance protects businesses and individuals from financial losses related to cybercrime, such as data breaches, hacking and cyber extortion. Some policies also cover other risks such as business interruption, reputation damage and system failure. It is important to note that cyber insurance does not cover all risks associated with cybercrime, and it will not prevent an attack from happening. However, it can help to minimize the financial impact of an attack and enable organizations to continue operating after an incident. Cyber insurance can help businesses in a number of ways, which include paying for the following:

1. Cost of data recovery.
2. Cost of business interruption.
3. Cost of damage to reputation.
4. Cost of ransom payments.

Generally, cyber insurance works almost like regular insurance, just for cyberattacks. Being insured helps you defray the cost of managing damages and recovering from a cyberattack and helps you get back on your feet much quicker.

Staying Safe Online

While no company will wish for an incidence of ransomware, it is always better to err on the side of caution. If proper measures are put in place, this can prevent your company from suffering greater losses in the future.