Cyber claims frequency declines 22%

Overall cyber claims frequency decreased by 22% from 2021 to 2022, says a report issued Tuesday.

The report by San Francisco-based managing general agency Coalition Inc., which is based on its own internal claims data as well as those of its insurer partners, states, “Most organizations experienced a decrease in the frequency and severity of cyber claims, while less-sophisticated crimes grew in popularity.”

It says funds transfer fraud, which allows threat actors to redirect or change payment information to steal funds, unseated ransomware as the leading event type, accounting for nearly one-third of all claims.

The report says while Russia’s war in Ukraine is often cited as a significant contributor to ransomware subsiding last year, organizations “are also increasingly utilizing secure offline backups to avoid paying steep demands.”

The report says, “We anticipate another rise in ransom demands as long as global socioeconomic conditions remain volatile,” while surges in funds transfer fraud are expected as well.