Global breach data shows rise in social engineering scams
New York, NY (Sept. 16, 2020) – Specialist insurer Beazley has reported that middle market organizations have been especially hard hit by online social engineering attacks during the pandemic. In the second quarter (Q2) of 2020, cybercriminals targeted businesses that remained open during lockdown where many employees were working remotely, making them more susceptible to cyber attacks.
Of all the social engineering attacks reported to Beazley Breach Response (BBR) Services globally in Q2, 60% of organizations targeted were in the middle market (defined as over $35 million in annual revenue), up from 46% in Q1.
Social engineering involving a system infiltration remained at a steady rate in the first half of the year. Fortunately, in more than 80% of reported incidents, the attack is stopped before a direct financial loss occurs.
Kimberly Horn, Beazley’s global claims team lead for cyber & tech, said: “Middle market organizations have been resilient in maintaining their day-to-day operations during the pandemic and, in turn, their employees are more available to be targeted. Additionally, cybercriminals are executing more sophisticated attacks and middle market organizations provide richer targets.
As our global breach data has demonstrated, if an incident is responded to early enough, an organization can often avoid a direct financial loss such as stolen funds. Modest investments in training and process changes could reduce the likelihood of falling victim.”
Fraudulent instruction attacks also primarily hit middle market organizations, which were the target in 55% of incidents, compared to 24% in Q1. In looking at individual sectors, healthcare, financial institutions, manufacturing, real estate, and education were the most targeted industries in Q2. The full Beazley Breach Insight report including tips on preventing social engineering and business email compromise is available here.
Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations in Europe, the US, Canada, Latin America and Asia. Beazley manages six Lloyd’s syndicates and in 2019 underwrote gross premiums worldwide of $3,003.9m. All Lloyd’s syndicates are rated A by A.M. Best.
Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley is a market leader in many of its chosen lines, which include professional indemnity, property, marine, reinsurance, accident and life, and political risks and contingency business.
For more information, visit www.beazley.com.
SOURCE: Beazley Group via KetchumZito FinancialTags: Beazley, coronavirus, cyber attacks, epidemic