Cybercrime is a growing threat, costing businesses billions annually. Learn how cyber insurance can safeguard your operations, mitigate financial losses, and protect against cyberattacks. Explore key trends, real-world case studies, and the latest on cyber insurance costs.
Written by Kristy Wilson of Bearing Insurance
Cybercrime is an escalating threat to businesses of all sizes, and commercial banks and their portfolio companies are particularly vulnerable. In today’s digital age, businesses rely heavily on technology and the internet to conduct their operations, making them susceptible to cyberattacks that can result in substantial financial losses, damage to their reputation, and disruption to business operations.
This document provides information on cybercrime trends, case studies, and the importance of cyber insurance for your portfolio companies. It aims to equip you with the necessary knowledge and tools to effectively communicate the value of cybercrime insurance in mitigating the risks associated with cyberattacks.
Cyber Crime Statistics and Trends
The cost of cybercrime is projected to reach a staggering $10.5 trillion annually by 2025. This alarming projection underscores the critical need for businesses to take proactive measures to protect themselves from cyberattacks.
Most businesses have high exposure to cyber risk for various reasons. If they store large amounts of sensitive data and transactions, utilize wire transfers for ease of doing business. We have seen a large uptick of various business operations across multiple industries being frequently targeted by criminals seeking to steal money or disrupt economic activity, with cybercrime attacks.
Here are some key statistics and trends related to cybercrime:
- Small and medium-sized businesses (SMBs) are prime targets, accounting for 43% of cyberattacks.
- Phishing attacks remain a prevalent threat, representing 16% of cybercrime incidents.
- Ransomware attacks are increasing, with a rise from 55% in 2022 to 64% in 2023 in the financial services sector.
- Data breaches are expensive, costing businesses an average of $4.88 million in 2024.
- The manufacturing sector is highly vulnerable to cyberattacks, experiencing nearly a quarter of the total attacks in 2023.
- Insider threats pose a significant risk, with 59% of former employees admitting to taking company data when leaving their jobs.
These statistics emphasize the importance of cybercrime insurance as part of a comprehensive risk management strategy for businesses.
Cyber Crime Case Studies
- Business Email Compromise (BEC) at a Local Construction Company: In 2023, a small construction company fell victim to a BEC attack-Business Email Compromise. Cybercriminals impersonated a high-level executive and requested a wire transfer of $75,000 to a fraudulent account. The company realized the scam only after the funds were transferred.
- Business Email Compromise (BEC) at a Local Real Estate Attorney Firm: In 2023, a real estate attorney firm fell victim to another BEC attack-Business Email Compromise. Cybercriminals infiltrated into his unsecure email account and sent an email impersonating a bank requesting funds for a home loan closing. The attorney firm did not have precautions set into place and sent the wire transfer of $650,000 to a fraudulent account.
- Malware Attack on a Small Accounting Firm: A small accounting firm was targeted by a malware attack in 2024. The malware infected the firm’s computers, stealing sensitive client information, including Social Security numbers and financial records. The firm had to notify affected clients as required by law and deal with the fallout.
- Credential Stuffing Attack on an E-Commerce Store: In 2023, a small e-commerce store experienced a credential stuffing attack. Hackers used stolen credentials to gain access to customer accounts which lead to unauthorized purchases and data theft.
- DDoS Attack on a Local Restaurants Online Ordering System: in 2024, a popular local restaurant suffered a Distributed Denial of Service (DDoS) attack. The attack overwhelmed the restaurant’s online ordering system, causing it to crash and resulting in significant revenue loss during peak hours.
Cyber Crime Insurance Costs
Annual insurance costs have been decreasing in 2024 and 2025 for a number of reasons.
- Increased Competition: More insurers are entering the cyber insurance market, driving competitive pricing and better coverage options.
- Improved Risk Management: Companies have been adopting stronger cybersecurity measures, such as multi-factor authentication (MFA), endpoint detection and response (EDR), and employee training, reducing overall risk and claims.
- Maturing Market & Underwriting Models: Insurers now have better data and experience in assessing cyber risks, leading to more accurate underwriting and pricing.
Need to connect with a Bearing Insurance Agent for a deeper dive? Connect with Kristy on LinkedIn.