Global cyber attack could trigger $53 billion in losses: Lloyd's of LondonJuly 17, 2017 - 10:43 AMT PanARMENIAN.Net - A major, global cyber attack could trigger an average of $53 billion of economic losses, a figure on par with a catastrophic natural disaster such as U.S. Superstorm Sandy in 2012, Lloyd's of London said in a report on Monday, July 17, Reuters reveals. The report, co-written with risk-modeling firm Cyence, examined potential economic losses from the hypothetical hacking of a cloud service provider and cyber attacks on computer operating systems run by businesses worldwide. Insurers are struggling to estimate their potential exposure to cyber-related losses amid mounting cyber risks and interest in cyber insurance. A lack of historical data on which insurers can base assumptions is a key challenge. "Because cyber is virtual, it is such a difficult task to understand how it will accumulate in a big event," Lloyd's of London Chief Executive Inga Beale told Reuters. Economic costs in the hypothetical cloud provider attack dwarf the $8 billion global cost of the "WannaCry" ransomware attack in May, which spread to more than 100 countries, according to Cyence. Economic costs typically include business interruptions and computer repairs. The Lloyd's report follows a U.S. government warning to industrial firms about a hacking campaign targeting the nuclear and energy sectors. In June, an attack of a virus dubbed "NotPetya" spread from infections in Ukraine to businesses around the globe. It encrypted data on infected machines, rendering them inoperable and disrupted activity at ports, law firms and factories. "NotPetya" caused $850 million in economic costs, Cyence said. In the hypothetical cloud service attack in the Lloyd's-Cyence scenario, hackers inserted malicious code into a cloud provider's software that was designed to trigger system crashes among users a year later. By then, the malware would have spread among the provider's customers, from financial services companies to hotels, causing all to lose income and incur other expenses. Average economic losses caused by such a disruption could range from $4.6 billion to $53 billion for large to extreme events. But actual losses could be as high as $121 billion, the report said. As much as $45 billion of that sum may not be covered by cyber policies due to companies underinsuring, the report said. Average losses for a scenario involving a hacking of operating systems ranged from $9.7 billion to $28.7 billion. Lloyd's has a 20 percent to 25 percent share of the $2.5 billion cyber insurance market, Beale said in June. Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Ucom equips four bus stops in Ijevan with free Wi-Fi Ucom now provides free Wi-Fi coverage in smart bus stops in four communities of Ijevan. Armenia, Russia discuss life extension of Metsamor nuclear plant Issues regarding the extension of life of the 2nd power unit of the Armenian Nuclear Power Plant were discussed in Yerevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. |