Broker Check

Ransomware is More Expensive, But Funds Transfer Fraud More Frequent

December 29, 2022

According to an article in CPO Magazine (at cyber insurer Corvus reported their most frequent claim was for funds transfer fraud (36% of all claims in 3rd quarter 2022). However, ransomware claims are more expensive, averaging $256,000 per claim compared to $90,000 for funds transfer fraud.

Defenses against ransomware are improving, but remediation is costly. As part of ransomware, criminals are selling stolen data or using it to extort payment.

Funds transfer fraud is increasing through business email compromise and other forms of social engineering, often by compromising a third party vendor.

With ransomware and funds transfer fraud comprising over 50% of cyber claims, companies need to have insurance covering both and also have proper security in place.