UK ransomware attacks rose by 100% in 2021

A new data analysis conducted by international law firm RPC revealed that the ransomware attacks handled by the Information Commissioner’s Office (ICO) in the UK increased by 100 percent, from 326 cases in 2020 to 654 cases in 2021.

Ransomware threat actors are most likely to target organizations that handle sensitive financial data. Finance, insurance, and credit (103), and education and childcare (80) were the verticals most frequently impacted by attacks in 2021.

Cyber is becoming increasingly rare to be covered by non-specialized insurance policies, according to Richard Breavington, partner and head of RPC’s cyber and tech insurance team. He warned that businesses that do not purchase dedicated cyber insurance risk being exposed.

However, businesses that want to avoid being caught in an insurance gap have many options. One option is to purchase the most up-to-date IT security software. This will reduce the chances of being hacked, but it will also show insurers that they are serious about cybersecurity, making it easier for them to obtain coverage, he added.

Corporates should also make sure that their systems are regularly backed up in separate backups, which could help minimize business disruption in an attack.

In some circles, the rising popularity of cyber insurance has been blamed for the rise in ransomware attacks. Victims were more likely to rely on their policies rather than invest in stronger cyber defenses.

According to a study published in 2021, two-thirds of cybersecurity professionals (70 percent) believe insurance payouts exacerbate ransomware, a type of malware that uses encryption to encrypt and block access to a victim’s data until a fee is paid. On the other hand, insurance companies have been reducing coverage and tightening policy requirements in recent years, raising the security bar for organizations looking to purchase policies.