Recently, Chubb shared the top Cyber Risks for Manufacturers. As the cyber crimes continue to evolve, it is important to understand the growing risk:
- 10% increase in Cyber Crimes
- The median cost to mediate a claim has risen to $400,000
- 86% of the incidents occurred from outside the organization and from someone with no ties to the organization
A manufacturing company experienced a ransomware attack that resulted in the encryption of several of their files. After the Insured contacted our 24/7 incident response hotline, they were offered a consultation with an incident response coach and forensic experts from Chubb’s cyber panel. As a result of these discussions, the Insured chose not to pay the ransom. However, once the forensic firm began working on remediating the ransomware attack, they discovered that the Insured was also the victim of crypto-mining. Cryptomining occurs when an unsuspecting party has coin mining (Bitcoin or other cryptocurrency) software installed into its system.
As a result of crypto-mining, the bad actor was able to secretly mine cryptocurrency at the expense of the Insured’s system. This type of surreptitious mining operation often leads to a drain on the processing power which extends to a degradation in service. In addition to the forensics firm and incident response coach, the Insured also incurred credit monitoring and notification fees, as Personally Identifiable Information (PII) was compromised in the attack. Having a Cyber Insurance policy from Chubb enabled our client to understand the cyber damage to the fullest extent quickly and cost-effectively rectifying the damage.
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