Beazley Reports Email Compromise On Rise
Beazley released a report which shows that year over from 2017 through 2018, Business Email Compromise (BEC) claims increased 133%.
In 2018, BEC accounted for 24% of the overall number of incidents reported to Beazley Breach Response (BBR) Services; up from 13% in 2017
“The threat posed by cyber criminals continues to grow in complexity as they devise new techniques to breach IT security and trick unsuspecting employees into allowing them access to systems.” Katherine Keefe, Global Head of Beazley Breach Response
Takeaways from Beazley’s 2019 Cyber Breach Report
The latest report from Beazley includes a study of over 3,300 breach claims they handled in 2018. Here are some quick stats:
- 47% of these were the result of hacking or malware; half of those (23%) were email compromise.
- The average ransomware demand in 2018 was more than $116,000
- The demand median was $10,310
- The highest demand was $8.5 million – the equivalent of 3,000 Bitcoin at the time
Beazley recommends the following precautions:
- Implement multi-factor authentication for remote access
- Provide regular anti-fraud training for employees
- Set up pre-determined codes to confirm requests for employees authorized to request fund transfers
- Limit the number of employees who can authorize wire transfers
- Apply the following checks if a vendor requests changes to its account details:
- confirm all requests by a direct call
- use pre-agreed phone numbers
- review all requests by a next-level approver before making any changes
- check that the address or bank account are the same as for previous payments
Get The Report
Download the 2019 Beazley Business Brief Report on Cyber Using the adjacent link.
Final Thoughts
We expect more insurers to put forth similar data as they release their 2018 annual reports and claims statistics. Stay tuned for more analysis.
Additional Reading
If you want to learn more about cybersecurity and being smart online, read our complete guide to cyber risk management for private families.
About the author
Bob
Strategist | Advisor | Thought Leader
Bob Raymond manages risk for many of the country’s preeminent families and family offices. He is an outside director, educator, and the founder of privateRISK.