A new report by Coalition reveals that over half of all cybersecurity claims in 2023 were linked to email-based frauds, highlighting the critical vulnerabilities within corporate email communications.
In recent findings published by Coalition, a leading provider of cyber insurance and security services, it has been revealed that a significant proportion of cybersecurity threats originates in a likely and yet oft-overlooked gateway: the humble email inbox. As part of its 2024 Cyber Claims Report, the company illuminated that over half of all claims made in 2023 arose through vectors such as funds transfer fraud (FTF) and business email compromise (BEC).
The analysis painted a worrying scenario where threat actors, through simple manipulations of email communication, have not only discovered a lucrative attack surface but one that is relatively easy to exploit. Coalition specifically noted that these attacks had been financially draining, with more than $38 million successfully reclaimed in fraudulent transfers.
The heightened risk profile extends beyond just email communications to include critical network boundary devices like firewalls and virtual private networks (VPNs). These elements, designed to safeguard corporate networks, reportedly increase the risk of a cybersecurity breach if they aren’t properly maintained or if they house known vulnerabilities. According to the report, businesses using certain vulnerable Cisco ASA and Fortinet devices faced a substantially higher likelihood of a claim—up to five times and two times, respectively.
The importance of vigilant cybersecurity practices thus comes into sharper focus, especially with the advancements in artificial intelligence which ease the creation of targeted cyberattacks. This backdrop makes the role of proactive cyber insurance providers critical, as they not only cover the financial repercussions of cyberattacks but play a crucial role in preventing them through constant monitoring and swift response mechanisms.
The scale of cyber threats is further highlighted by a 13% year-over-year increase in overall claims frequency, coupled with a 10% increase in severity throughout 2023. Each incident on average accounted for a loss of $100,000. The report stresses on the substantial rise in ransomware attacks, although there was a marginal decline in their severity due to successful mitigation efforts. The global ransomware payout reached a staggering $1 billion, underscoring the sheer economic scale of the problem.
Such insights underscore a broader industry challenge—balancing the empowerment offered by digital transformations with the increasing sophisticated threats posed by cybercriminals. For businesses, the implication is clear: robust cybersecurity measures and an informed, proactive response strategy are no longer optional but essential components of modern business strategy.
Companies intent on navigating this treacherous landscape would find a resource in Coalition’s comprehensive approach, which blends cutting-edge security tools with active insurance to accentuate resilience against cyber threats. This holistic strategy not only provides a financial safety net but also works to significantly deter potential digital risks before they manifest into full-blown crises. As cyber threats evolve, so must the strategies to combat them, emphasizing the need for dynamic solutions in tackling the multifaceted challenges of the digital age.