In Part 2 of our Emerging Trends: Cyber Insurance series, we explore different cyber threats. Part 1 focused on the trend of fewer organizations paying ransom demands.

Over the past five years (2018 - 2023), the annual monetary damage caused by reported cybercrime in the United States has increased more than fourfold. A key driving factor is the emergence of new and sophisticated attacks. In the ever-evolving cyber threat landscape, these trends pose significant risks to organizations worldwide. Our recent data highlights three prominent threats gaining traction:

• Smishing is a social engineering attack that uses fake mobile text messages to deceive individuals into revealing sensitive information or downloading malware. This tactic exploits the trust people place in their mobile devices.

• Bot attacks involve using automated scripts (bots) to overwhelm targets with traffic, disrupt services, steal data, or make fraudulent purchases. These attacks can cause significant operational and financial damage.

• Bin attacks are a form of credit card fraud where attackers use brute force methods to guess credit card information. This type of fraud can lead to substantial financial losses for both consumers and businesses.

To stay ahead of the curve, enhanced employee training and investing in advanced cybersecurity measures are critical. The 2023 survey found that phishing and social engineering accounted for 23% of the primary root cause of cyber attacks, highlighting the need for regular training on identifying and responding to social engineering attacks. Additionally, implementing advanced security technologies to detect and mitigate bot and bin attacks can prevent significant financial losses.

By adopting these measures, organizations can better protect themselves against cybercriminals' increasingly sophisticated tactics and mitigate the growing financial impact of cyber incidents. When you partner with Newfront, you gain tailored support and expert guidance in reducing your business's cyber risk.

Stay tuned for Part 3 of our series.