Insurance companies are insisting to pay ransom for ransomware attacks

    Ransomware attacks are super- threatening to businesses these days as they can make or break a business with ease. And security researchers suggest that the only way to mitigate such cyber risks is to use backup files for disaster recovery and maintain a healthy Cybersecurity posture by using threat monitoring solutions.

    But nowadays, Insurance companies which are offering a cyber insurance cover are offering a new deal with the fallout in the event of such crimes. And that is to pay the demanded ransom in Cryptocurrencies such as Bitcoins or Monero to get back the files.

    According to a report published by ProPublica early this week insurance companies are now preferring to fork tens and thousands of dollars in ransom to minimize the detriment to the affected parties.

    ProPublica report says that paying a ransom to hackers makes complete sense as it cuts down the need to pay overtime to employees engaged to recover data and also helps the need to pay heavy for public relation efforts to deal with the aftermath of an attack.

    But Cybersecurity experts working for governments and corporates suggest the other way round while dealing with the cyber attacks. Payment of ransoms in malware attacks doesn’t guaranty free-up of data and in-fact encourages crime to a large extent.

    William Haul, the President of a Financial firm operating in the UK suggests the same advice given by the Insurance company. His firm which became a victim of a WannaCry Ransomware attack in 2017 spent thousands of pounds to rebuild the lost data and in the purchase of new hardware and software. He who likes to keep his firm’s name anonymous has come to a conclusion that paying a ransom of $300 as Ransomware made a lot of sense than spending millions of dollars to rebuilt the database.

    So, what’s your say on the advice given by the Insurance Companies?

    Feel free to share your views through preferred social media platforms seen below.

    Naveen Goud
    Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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