Lloyd’s of London have reported that a serious cyberattack could cost the global economy as much as a devastating natural disaster.
Lloyd’s of London has reported that a serious cyberattack could cost the global economy as much as a devastating natural disaster.
According to the Guardian, average losses from a crippling cyberattack are estimated to be around $53 billion.
However, insurers are unable to give a specific estimate, due to the complexity of cyberattacks and the lack of historical data available. A worst case scenario could see the figure reaching up to $121 billion.
The report looked at the potential damage that could be triggered by an attack on a cloud service provider, which is believed to be the most likely target for an attack.
The paper judged the second-most likely threat to be to worldwide computer operating systems.
The industry found to be most at risk is the financial sector, followed by software and technology and then hospitality.
Inga Beale, chief executive of Lloyd’s, said: “Because cyber is virtual, it is such a difficult task to understand how it will accumulate in a big event.”
She added: “Cyber events can cause a severe impact on businesses and economies, trigger multiple claims and dramatically increase insurers’ claims costs.”
Cybersecurity experts at ESET have recently identified Industroyer as a major threat, especially to Industrial Control Systems.
It is hoped that analysis of such threats will serve as a wakeup call for all those responsible for the security of critical infrastructure (systems) worldwide.
Such repeated warnings should not be falling on deaf ears.
Many governments and businesses run a huge financial risk by not being insured; but more crucially, risk falling victim to an attack by failing to ensure that employees and consumers heed expert advice.