The 2024 Cyber Claims Report by Coalition has highlighted an alarming increase in cybercrime, describing it as “a thriving business” that significantly impacts the U.S. economy. Over the past year, cyber claims frequency has seen a 13% rise, with reported losses totaling a staggering $12.5 billion from more than 880,000 complaints filed to the FBI in 2023 alone. Cybercrime has become a huge global business!
Despite a decrease in overall claims severity in the latter half of the year, a sharp rise in ransomware incidents earlier in the year led to an overall 10% year-over-year increase in claims severity, with average losses due to these ransomware attacks hitting $100,000.
Key Findings and Trends:
- Ransomware Dominance: Ransomware continues to be a major contributor to claims severity, accounting for 19% of all reported claims. Notably, the LockBit ransomware variants, including LockBit 3.0 and LockBit 2.0, were significant contributors to these figures. Despite brief disruptions by law enforcement in early 2024, the LockBit ransomware gang quickly resumed operations.
- Funds Transfer Fraud Concerns: The frequency of funds transfer fraud (FTF) rose by 2%, with the initial severity of these incidents increasing by 24% year-over-year, averaging losses of over $278,000.
- Other Cyber Events: There was a 21% increase in claims frequency for other events, such as errors, legal issues, privacy breaches, and third-party compromises, with the severity of these claims rising 28% to an average loss of more than $53,000.
- Business Email Compromise (BEC) and AI Threats: While claims related to BEC decreased by 8%, there is a growing concern about the use of generative artificial intelligence (AI) by cybercriminals to launch more sophisticated attacks.
Cybersecurity and Device Vulnerabilities:
The report also shed light on the risks associated with certain boundary devices, such as firewalls and VPNs. Coalition’s analysis revealed that businesses using Cisco Adaptive Security Appliance (ASA) devices were nearly five times more likely to experience a cyber claim in 2023, exacerbated by new critical vulnerabilities discovered last year. Similarly, businesses with internet-exposed Fortinet devices faced double the likelihood of making a cyber claim compared to previous years.
Proactive Measures and Best Practices:
In response to these trends, Coalition emphasized the importance of proactive cybersecurity measures. Effective practices include updating firmware, monitoring all network endpoints, and employing robust boundary devices to quickly respond to any compromises. Despite their critical role in managing cyber threats, the report highlighted that these devices, when not properly secured, can significantly increase the likelihood of cyber claims.
As cyber threats evolve and become more sophisticated, businesses and individuals alike must stay vigilant and informed about the latest trends and protective measures to safeguard their operations and data in an increasingly digital world.
