Three Ways Global Conflicts Impact Cybersecurity in the Business World
Protecting the cybersecurity interests of customers is a new challenge for tech businesses in the wake of the Russia/Ukraine conflict. These are the three most important points to keep in mind when planning your next steps.
It has been hard and heartbreaking to follow the ongoing conflict in Ukraine, especially when you consider the loss of civilian lives and the damage that could take many years to repair. Unfortunately, the implications of what’s happening there could also soon have more wide-reaching ramifications–everywhere.
The U.S. intelligence, law enforcement agencies and other Western governments have warned of possible Russian attacks against Western targets. Many in cybersecurity believe that President Putin and other threat actors loyal to Putin regime will retaliate against the sanctions and social isolation being imposed on Russia, its businesses and wealthy oligarchs – and that cyberattacks will be part of the retaliation.
Russia-based threat agents have been responsible for many of the most serious attacks on U.S. infrastructure in the past two decades, including Colonial Pipeline, JBS Foods, and JBS Foods. Chainalysis’s research revealed that 74% of ransomware payments went to Russian-affiliated organizations, according to the BBC. Russian threat actors and government agencies have a lot of potential and should not be underestimated. The likelihood of counterattacks increases as Russia is hit hard by sanctions and other major interdictions.
Review and Improve Your Cyber Positionure
Managed service providers must improve their own position and get government and businesses to take action. There are no excuses. The IT security professionals are the most powerful group that can help.
Since the advent of network technology, cyber threat actors have been threatening Western democracies as well as other countries. The impact of cyber threats have been increasing, from the theft and exploitation of business intellectual property, military secrets, and personal data to service interruptions and ransomware, and other extortion attempts. These attacks can result in the destruction or complete destruction of companies and jobs. They reduce our national security and technological advantages. These interruptions can lead to financial and human capital losses as well as high costs. Here are three key points for businesses that need to protect the cybersecurity interests of customers:
1. Cyber Insurance Costs: What are the repercussions?
Unfortunately, the timing of the invasion in Ukraine coincides with other major changes to the risk landscape. There has been a significant shift in the behavior of insurers. Insurance companies are retaliating against those who do not take adequate measures to protect themselves. They refuse to cover those who have lied or incorrectly filled out insurance risk questionnaires. Cyber insurance underwriters require companies to attest to reasonable data protection and networking practices. Brokers warn clients that if they fail or do not attest to the above, they will not be covered in case of a breach or other incident.
Many tech-relevant imperatives have emerged from the war and other geopolitical events. Organizations that still rely on denial as a defense or insurance for recovery must immediately change their thinking. Insurers are refusing coverage for victims in state-initiated attacks or acts of war due to the massive losses and the possibility that the attacks could be deemed state-sponsored. Even if your cyber hygiene requirements are met, you might find that you do not have insurance coverage. This means that victims who are attacked by Russia may have their claims denied.
My close colleagues at the top of the insurance industry tell me that we are only beginning to see a new standard in insurance. There have been reports of insurance premium increases as high as 334%. In many cases, they are at an average of 100% with significant reductions in coverage limits. We have managed many cases involving global enterprises that were insured and we know there is more scrutiny on the costs of recovering. Insurers push victims to get back up, and not spend as much on future defense and containment. Ransomware victims often pay ransomware to keep their businesses afloat.
Insurance coverage is essential because most victims don’t have the funds to pay a threat actor hundreds of thousands or millions of dollars. Paying a ransom can be difficult at times because it could be illegal. Given their war footing, it is probable they will not attack western targets. However, those attacks will be devastating and not a.