Ransomware insurance claims from small businesses hit a record high in the first half of 2023, according to Coalition, a company that sells cyber insurance and provides risk management to businesses. Insurance claims between January 1 and June 30, 2023, for ransomware attacks increased by 27% compared to the second half of 2022.
Ransomware is a form of malware designed to encrypt files on a device and render its systems and files unusable. Cybercriminals then demand a ransom in exchange for decryption. Cybercriminals also often threaten to release sensitive data in exchange for ransom. When both tactics are applied, it’s known as “double extortion.”
The average ransom demand was $1.62 million in the first half of 2023, a 47% increase from the previous six months and a 74% increase over the past year, according to the report. Overall business claims made to Coalition increased by 12% in the first half of 2023 compared to the second half of 2022. Ransomware attacks accounted for 19% of all claims reported in the first half of 2023.
