Global ransomware attacks reached a record high in 2023 and despite success in tackling the BlackCat dark-web leak site and banking trojan Qakbot, the need for cyber insurance remains crucial with cyber-criminals able to attack, re-brand and strike again.

In the UK, statistics show that 32% of businesses reported suffering a cyber-attack or a breach in 2023 with GCHQ’s National Cyber Security Centre (NCSC) warning Artificial Intelligence (AI) is expected to heighten the global ransomware threat.

The NCSC believes that in 2024: “AI will almost certainly make cyber-attacks against the UK more impactful because threat actors will be able to analyse exfiltrated data faster and more effectively and use it to train AI models.”

Cyber criminals are beginning to use AI-powered language to create malware and produce highly convincing phishing emails and deep fakes.

While statistics continue to show an ongoing threat from cyber criminals there have been some signs of success with a reported drop in Q4 global ransomware attacks of 7% from Q3 following the action taken against BlackCat, also known as ALPHV, and Qakbot. However, the overall picture remains concerning.

Last year there were several significant companies that faced cyber-attacks including electronic manufacturer Volex, magic circle law firm Allen & Overy, and payroll provider Zellis.

At least 10 new threat actor groups are reported to have also used Babuk’s encryptor following the leak of the ransomware’s source code on a hacking forum in 2021. Areas seen as vulnerable to attacks include transportation, logistics and storage sectors.

Cyber policies offered by W Denis provide more than just insurance, they are inclusive of additional services which help to mitigate the impact of a data breach/hack etc, including PR services to manage the crisis, forensics to investigate the root cause and expertise to eradicate the issue. Locked systems and ransomware can be catastrophic to a business. Prudent risk managers who buy comprehensive cyber insurance gain access to a wide range of support services to help the business in the event of a claim in addition to ransomware payment negotiations.

To discuss this further with a broker at W Denis, please make arrangements with Daniel Moss at daniel.moss@wdenis.co.uk or on 0044 (0)113 2439812 or contact Mark Dutton at mark.dutton@wdenis.co.uk or on 0044 (0) 7831 366 469