October 19, 2020

Volume X, Number 293

October 16, 2020

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Ransomware Attacks Predicted to Occur Every 11 Seconds in 2021 with a Cost of $20 Billion

Confirming what we are seeing in the field, cybersecurity firm Cybersecurity Ventures has predicted that, globally, businesses in 2021 will fall victim to a ransomware attack every 11 seconds, down from every 14 seconds in 2019. That figure is based on historical cybercrime figures. It is estimated that the cost of ransomware to businesses will top $20 billion in 2021 and that global damages related to cybercrime will reach $6 trillion. Yes, that is with a “T.”

The estimate includes the cost to restore and mitigate following a ransomware attack, and is not limited to actual ransom payments. The recovery cost from a ransomware attack is substantial, and companies would do well to consider these costs when budgeting over the next few years.

It is reported that 91 percent of cyber-attacks begin with a spear-phishing email, which is instructive to businesses regarding the importance of educating employees to not rely on email and to be highly vigilant about all email traffic, links and attachments. Our experience confirms that the attack vector in a very high percentage of ransomware attacks is through phishing emails. These statistical predictions are staggering and worth noting for planning for effective risk reduction through security measures, employee education, and cyber liability insurance coverage.

Copyright © 2020 Robinson & Cole LLP. All rights reserved.National Law Review, Volume X, Number 44

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About this Author

Linn F. Freedman, Robinson Cole Law Firm, Cybersecurity and Litigation Law Attorney, Providence
Partner

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She provides guidance on data privacy and cybersecurity compliance to a full range of public and private clients across all industries, such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine, and charitable organizations. Linn is a member of the firm's Business Litigation Group and chairs its Data Privacy + Cybersecurity Team. She is also a member of the Financial Services Cyber-Compliance Team (CyFi ...

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