Three Recent Cyber-Attacks and How Insurance Saved the Day
Cyber-attacks pose an ongoing threat to modern business, no matter the size or industry. Recent cyber-attacks making headlines demonstrate that just one data breach or cyber threat is all it takes for a business to suffer serious, sometimes dire, financial losses. That’s why a comprehensive cyber insurance policy is essential.
Learn more about recent cyber-attacks and how a cyber liability policy with Gilsbar can provide you with peace of mind.
Recent Cyber-Attacks on Businesses and How Cyber Insurance Helped
According to statistics on cyber security, over 2,365 cyberattacks occurred in 2023, leaving over 343 million victims. As many as 94% of organizations experienced email security incidents, which account for over $2 billion in losses annually.
Even the largest businesses with the most robust cybersecurity protocols can fall victim to cyber-attacks. Cyber insurance is a type of coverage that mitigates the financial risks of data breaches and other cyber threats against businesses. It covers the cost of recovering data, meeting ransom demands, notifying customers, and moving forward after a data breach.
These recent cyber-attacks are examples of the types of threat your business is vulnerable to in this digital age—and how cyber insurance did save, or could have saved, the day.
Ransomware Attack on a UK E-commerce Business
One UK-based e-commerce business experienced a disastrous ransomware attack that left its customer database vulnerable to hackers. The attackers locked the organization out of its systems with sophisticated encryption and demanded a steep ransom in return for the company’s data.
The company faced significant financial losses, not only from the ransom demand but also from the costs of data recovery, legal support, and business interruption. Cyber insurance provided the financial support the business needed to mitigate these effects while maintaining customer trust throughout the breach.
AT&T Data Breach
Telecommunications giant AT&T was another recent victim of cyber-attack. The company reported in early 2024 that one of its customer datasets from 2019 was found on the dark web. This dataset included records from over 7 million current and 65 million former customers.
Although it’s unclear whether AT&T had cyber insurance at the time of the attack, a cyber liability policy would have protected the company against the enormous expenses resulting from this breach. AT&T quickly launched an investigation to stop the spread of malware, but it currently faces multiple class action lawsuits for the breach.
A comprehensive cyber liability policy would cover these costs and more.
Ticketmaster Cyber-Attack and Data Leak
In May 2024, Ticketmaster experienced a security breach in which hackers accessed over 560 million customer records in a single attack.
While the company emailed its customers about the attack, this communication did little to mitigate the damage, leading countless customers to lose trust in Ticketmaster and look for alternative ticketing agents.
Ticketmaster has not disclosed whether it has cyber liability insurance in place. If it does, this insurance could help cover legal costs, support customers whose data was stolen, and compensate for the revenue lost due to the breach. Cyber insurance could have helped Ticketmaster mitigate the damage before alerting customers, helping to maintain customer trust through the breach.
Turn to Gilsbar for Cyber Insurance and Gain Peace of Mind
These recent cyber-attacks show that the threat of digital security breaches will always be present. But with the right cyber insurance policy in place, your company doesn’t need to worry about the financial implications of a data breach. This will also ensure that your customers continue to believe in your ongoing dedication to their satisfaction and well-being.
Gilsbar provides comprehensive cyber insurance policies customized to your business’s needs, budget, and vulnerabilities. We can also help you understand potential cyber security resolutions to reduce data exposure and prevent expensive cyber losses.
Click here to request a cyber liability insurance quote today!