The landscape of cyber risks for companies, commercial enterprises, and government agencies has undergone a significant escalation in recent years. This surge has made coverage and liability protection the foremost concerns for numerous companies and commercial lines. The Internet Crime Complaint Center (ICC), a division of the FBI, annually publishes a comprehensive report on the internet crime landscape. The 2020 report, which we will link to in the video, provides crucial insights that are essential for businesses and insured individuals.
Statistics Highlighting Escalating Threats
The 2020 ICC report revealed staggering facts, indicating a record-breaking number of complaints totaling 791,000, with losses exceeding 4.1 billion USD. This marked a substantial 69% increase from the previous year. Moreover, projections for 2021 suggest an even more substantial surge, potentially doubling the numbers reported in 2020. Among the various types of cybercrime, business email compromise (BEC) schemes emerged as the costliest, with 19,000 complaints amounting to losses of 1.8 billion USD. Regardless of the email service provider, scammers employ BEC techniques to infiltrate systems, execute ransomware attacks, or coax users into unwittingly disclosing sensitive information.
Diverse Array of Cyber Threats
The ICC report further emphasized the prevalence of phishing scams, accounting for 54 million incidents, alongside the continuing rise of ransomware attacks. Beyond these, consumer scams such as investment fraud and relationship scams persist, adding to the multifaceted landscape of cyber threats faced by individuals and businesses.
Insightful Statistics Over Five Years
A closer look at the statistics over the last five years highlighted a worrying trend. From 2016 to 2020, the total reported losses reached a staggering 13 billion USD. While the number of complaints did not exactly double from 2019 to 2020, there was a substantial increase. The diverse types of cybercrime reported included phishing, non-delivery extortion (like ransomware), and identity theft, encompassing the purview of the ICC, a crucial arm of the FBI dedicated to addressing cybercrime.
The necessity of vigilance and adequate coverage
For business enterprises, commercial operations, and even public entities like government agencies or educational institutions, safeguarding against cyber breaches and potential losses is imperative. Employing best practices for the prevention and mitigation of cyber threats is vital. Additionally, exploring the available coverage options provided by brokers or agents in their respective states becomes a critical step in addressing these evolving risks.