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Cyber Liability Insurance: need to have, or nice to have?

Imagine logging onto your computer and being met with the following message:

Attention!

All your files, documents, photos, databases and other important files are now encrypted.
The only method of recovering files is to purchase an unique private key.
Only we can give you this key and only we can recover your files.

UNDER NO CIRCUMSTANCES DELETE THIS FILE, UNTIL ALL YOUR DATA IS RECOVERED
FAILING TO DO SO, WILL RESULT IN YOUR SYSTEM CORRUPTION, IF THERE ARE DECRYPTION ERRORS

Written by Paul Brown on 26th June 2019

Cyber Liability Insurance: need to have, or nice to have?

Imagine logging onto your computer and being met with the following message:

Attention!

All your files, documents, photos, databases and other important files are now encrypted.

The only method of recovering files is to purchase an unique private key.

Only we can give you this key and only we can recover your files.

UNDER NO CIRCUMSTANCES DELETE THIS FILE, UNTIL ALL YOUR DATA IS RECOVERED

FAILING TO DO SO, WILL RESULT IN YOUR SYSTEM CORRUPTION, IF THERE ARE DECRYPTION ERRORS

How would you react?

This is the message that one of our clients was faced with one Saturday morning. The ransomware attack was identified as GANDCRAB V5.1 andour client’s experienced Director of Information and Communication Technology (ICT) immediately contacted the 24/7 Cyber Incident Response provided by his cyber liability policy, recommended by Franklands and set about restoring the data on their two servers whilst identifying the device which was involved in the initial compromise. 

 

 

The Cyber Incident Response team put the client in contact with expert cyber incident responders and specialist cyber claims handlers via a large network of global partners facilitating a coordinated response to handle the situation.

One call to the Cyber Incident Response number and our client was dealing with specialists in Australia and then the USA who provided the up to date intelligence about the latest version of GANDCRAB, verified the actions taken, provided specialist software to identify the source of the malware and supported our client in putting together his recovery plan. The Cyber Response team also provided invaluable advice on reporting the incident to the Information Commissioner’s Office and authorities.

GANDCRAB is considered one of the most prolific ransomware attacks and versions 4 and 5 are estimated to have infected around 500,000 victims worldwide, since July 2018. Considering the lowest ransom note is $600 and almost half of infected victims give in to ransomware, the developers might have made at least $300 million. Actual financial losses could be significantly higher, considering that some victims have reported ransom notes of $700,000*.

As an experienced Director of ICT our client might have considered Cyber Liability Insurance to be a luxury purchase offering little practical value over and above his extensive IT expertise, but having faced every client’s worst nightmare that Saturday morning he firmly believes that "Cyber Liability Insurance is essential in today's climate and is unfortunately becoming increasingly more so, to any organisation".  

If you would like to discuss this matter further then please get in touch with your usual Franklandscontact on 01332 545720.

*Source: https://labs.bitdefender.com/2018/10/gandcrab-the-most-popular-multi-million-dollar-ransomware-of-the-year/

 

 

 

 

 

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