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Ransomware & Phishing: Cyber Risks You Need to Know

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Is your company safe from cyber security breaches? According to the Cyber Security Agency of Singapore, over 137 ransomware cases were reported in 2021. This was a whopping 54% increase from 2020.

The same trends were observed globally. In 2022, there were over 493 million ransomware attacks worldwide. Ransomware attacks are especially common in industries that invest very little in technological infrastructure, such as education and healthcare. Attacks in these industries increased by over 49% in 2022, according to BlackFog.

137+

reported ransomware cases in Singapore

637+ million

ransomware cases globally

The Threat of Ransomware Attacks

Ransomware attacks are one of the worst cyber security breaches a business can face as they directly hinder operations and impact revenue. Hackers attack computer systems or even operating systems of internet-of-things (IoT) machinery. The business is forced to pay an unreasonable sum of money, or continue being unable to operate. Being hit by a ransomware attack is extremely costly.

In Singapore, the average cost of rectifying a ransomware attack in 2021 was about USD 1.91 million.

In 2021, about 129,000 Singtel customers had their personal data stolen by hackers due to a breach of their file-sharing system. The hackers later demanded for a ransom of USD 250,000 in the form of Bitcoin.

In many cases, hackers may even do a double extortion by stealing the company’s data before encrypting and blocking access to the system. The company is forced to pay a higher ransom for the hackers to delete the stolen data. Recently, there has also been a rising trend of triple extortion, by going after the company’s clients, partners, customers, suppliers or employees. 

To make matters worse, many companies are also hit with an attack a second time shortly after paying the ransom. 

With such a high price to pay, businesses should exercise caution and be aware of the system vulnerabilities that such hackers can exploit. One of the main ways ransomware hackers gain access is through phishing.

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Over 45% of all ransomware attacks were carried out via phishing.
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Cyber Resilient Organisation Study 2021, IBM

What is Phishing?

Phishing is a social engineering attack where hackers deceive people into revealing sensitive information or installing ransomware on their computer systems. Over 45% of all ransomware attacks were carried out via phishing, according to a 2021 study by IBM.

Malicious hackers may send an email disguised as one from the company, or from a director in the organisation. The recipient is tricked into filling their login details, or clicking links that install malicious software, which grants the hackers access into the system. 

Lapses in human judgement are the easiest vulnerabilities for hackers to exploit. Large companies are not exempt from this, as it only takes one successful deception for them to gain a foothold into the system. 

In May 2021, the Colonial Pipeline was hit with a ransomware attack that caused significant disruption to fuel supply on the East Coast of the United States. The attack was initiated through a phishing email targeting an employee’s credentials, which were then used to gain access to the company’s networks.

The Cost of Ransomware and Phishing Attacks

Direct costs of ransomware and phishing include loss of revenue due to business interruption, the cost of ransom, and crisis services. Over 86% of ransomware attacks result in loss of business revenue due to the encryption of the data and systems. On average, companies take a month to recover from an attack.

This is particularly costly in most industries where usage of the impacted system is crucial for breaking even or turning a profit. Some industries, such as healthcare, may face even bigger consequences. A hospital which has its systems locked down will not be able to access its patients’ clinical data, surgery schedules and other information, which may severely impact the quality of care given to patients. 

Based on the 2022 Netdiligence Cyber Claims global study, average ransomware costs for SMEs are up to $863K, while that for larger companies are up to $23.6million.

On top of that, there are also third-party costs that many businesses fail to realise, including the fees required for legal defence against clients or even the public. Data leaks are often also punished severely by the government in the form of fines.

$863K

average ransomware costs for SMEs

$26.9m

average ransomeware costs for large companies

Building Up Cyber Resilience to Protect Your Business

Faced with such a pertinent risk, companies need to build up cyber resilience and cyber-crime readiness strategies to deal with potential phishing, ransomware and other attacks. Educational programs and hoax phishing emails can help increase awareness among employees. Companies should also strengthen and maintain their cyber-security systems. 

Even with all precautions taken, no company is completely safe from cyber-attacks. All it takes is one mistake or vulnerability for hackers to take control of the system. Cyber insurance is hence also a key tenet of any holistic cyber resilience and risk mitigation strategy. 

Many companies do not realise just how much support and expert advice is required to tide them through a ransomware attack. A ransomware attack costs more than money – it costs a business’ reputation. Affected companies must rebuild trust carefully with its clients by ensuring prompt notification, transparency, and responsibility to check if any of the clients’ credit or banking information were used as a result of the data leak.  - Edward Wong, Regional Director, Technology Media Communications (Cyber), Howden Singapore

Cyber insurance covers expenses such as loss of business income, ransom fees and third-party liability fines. But more importantly, with cyber insurance, organisations get rapid access to experienced experts such as forensic IT analysts, specialist lawyers and public relations professionals, who can help to identify the cause of the cyber breach, contain the breach and avoid further damage, deal with the fallout, and restore your business back to usual. All of these are important tools in the face of a cyber attack.  Cyber breaches are stressful, and the 24/7 access to an expert panel will promptly help to contain and remediate the breach.

Organizations with a robust and tested cyber resiliency plan including cyber insurance, will potentially mitigate the risk of longer interruptions and high recovery costs, reducing the overall impact to the business. In today's era of digital technology, this is exceptionally important. 

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