WatchDog, a Seattle based Internet Security Solutions provider has discovered in its research that some tech-savvy cybercriminals are now interested in exploiting companies which have a cyber insurance cover. That’s because a policy cover related to cyber attack can not only offer a compensation to a ransomware incident but can also offer a full pay or a co-pay for the recovery of the data.
As a result of this fact, cyber crooks nowadays are interested in disrupting all those companies which have a cyber insurance cover because a ransomware attack on these companies guarantees a payday to the cybercriminals and that too without any negotiation stats.
According to Corey Nachreiner, the CTO of WatchGuard Technologies, insurers in most cases are willing to pay ransoms to recover their consumer data. Though the decision looks obvious in terms of business perspective, it, in fact, encourages cybercriminals to launch more ransomware attacks through phishing email scams.
So, is a cyber insurance cover really making companies vulnerable to cyber attacks?
No, said Corey. Only a few companies in a bid to attract the attention of the entire insurance industry and the clients indulge in such tactics. Others act in a mature way by auditing the company security defenses first before the policy is agreed.
Corey added in his statement that the year 2018 will witness a rise in extortion insurance instead of cyber insurance. He predicts that insurance providers will start to implement guidelines that require companies to first overhaul their cybersecurity defenses and then think about an insurance cover for the IT assets.
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