What Is Network Extortion?
Network extortion is a crime in which hackers hold an organization’s website, computer systems or data hostage until their payment demands are met. It may take the form of distributed denial-of-service (DDoS) attacks or ransomware.
Cyber attacks are more common than ever, with businesses experiencing 50% more attacks per week during 2021 compared with 2020. On average, 30,000 websites are hacked each day, and more than 60% of organizations have experienced a cyber attack at least once.
How Does Network Extortion Work?
Network extortionists may break into your software, networks and computer hardware to incapacitate them. With ransomware, hackers trick one of your employees into opening a file or clicking a link that activates a program that quickly spreads throughout the network. Your data and servers are then encrypted so no one in your organization can access files and applications.
With DDoS attacks, hackers use infected computers to overwhelm your web server with a flood of messages, paralyzing the system until the messaging stops. Cybercriminals increasingly partner DDoS attacks with ransomware demands to pressure victim companies after the company refuses to pay a ransom.
Restoration is typically only possible when you pay the hackers, and they provide you with the encryption key.
How Does Cyber Insurance Help Provide Protection?
Cyber insurance may help mitigate the financial impact of network extortion. This coverage typically helps pay for necessary and reasonable expenses that occur as a result of a network extortion threat which may include:
- Money paid to meet network extortion demands.
- Cost of hiring security experts to help prevent future network extortion attempts.
- Expenses associated with hiring professional help to deal with extortionists.
Get the Network Extortion Protection Your Organization Needs Today
Contact the agents at G&H Financial Insurance in Katy, Texas, today to learn more about how cyber insurance can help protect your company from the growing threat of network extortion.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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