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Cyber ​​Update: Increasing DDoS Attacks – CoverLink Insurance



In a distributed denial-of-service (DDoS) cyberattack, a cybercriminal tries to interrupt an online service by flooding it with fake traffic. During a DDoS attack, a network of infected computers overwhelms a victim’s IP address with requests. The goal is to exceed the capacity limits of their websites, servers and networks, resulting in a suspension of services. And DDoS attacks are increasing.

DDoS attacks are classified as network and site disruption losses in Advisen’s database. From 2011 to 2021, the losses from network and website disruptions increased by 550%, according to Advisen data, a worrying trend as these events can also be quite costly for the victim. In fact, one research team found that the average cost of a DDoS attack is $ 21

8,000.

Read the following article to understand what drives the increased frequency of DDoS attacks, the industries most affected (according to Advisen data) and tips to avoid becoming the next victim.

DDoS attacks are explained

DDoS attacks occur when a hacker infects devices with malicious software and creates a network of remote computers called a botnet. Botnets can consist of millions of computers that can be found anywhere and belong to anyone. The hacker then instructs the botnet to flood its victim with more connection requests than they can handle.

DDoS cyberattacks come from a variety of sources, which may include dissatisfied employees, competitors, or nation state actors. The attackers can try to take revenge, cause chaos or gain a competitive advantage. DDoS attacks can also involve extortion, where perpetrators install ransomware on servers and demand payment to repair the damage.

The increasing frequency of DDoS attacks

DDoS attacks are increasing at an alarming rate. Some factors that contribute to this increase include:

  • Internet of Things (IoT) devices—The number of IoT devices is increasing rapidly. In 2021, the number of active endpoints globally increased by 8% to 12.2 billion. By 2030, this number is expected to exceed 25.4 billion. But as the number of connected devices increases, so does the number of devices available for hackers to turn into botnets; IoT devices are particularly vulnerable because they rarely have built-in firmware or security controls. The growing number of IoT devices will allow hackers to create wider networks of computers, strengthening the size of the attacks they can subject their victims to.
  • Application Programming Interface (API)—APIs are small pieces of code that allow systems to share data publicly. Public APIs can have a number of vulnerabilities, including weak authentication controls, lack of robust encryption, and incorrect business logic. In a DDoS attack, APIs can be attacked at both ends of the service. This means that your API can be attacked from the server and the API server at the same time, which significantly increases the strength of an attack.
  • Cyber ​​warfare—War and international tensions could lead to an increase in hacktivist-driven cyberattacks. The term “hacktivist” is used to describe cybercriminals who are ethically, politically or socially motivated. Hacktivists can use DDoS attacks to make a statement or take revenge on people, governments or organizations they do not agree with, among other things.
  • Ransomware / extortion– Cybercriminals are increasingly collaborating with DDoS attacks with demands for ransomware / extortion. In this way, DDoS attacks can increase the pressure on victim companies and bring them back to the negotiating table after a refusal to pay a ransom.

Losses in Advisen’s database provide an insight into the increasing frequency of DDoS attacks, the industries most affected by this type of cyber threat and the consequences of such attacks.

Advisen Data – Network and website disruption losses per year

DDoS attacks are increasing

The losses from network and website disruptions reached a record level in 2021. The record-breaking year comes after a decade of significant increase.

Losses of network and website disruptions by industry

DDoS attacks

Losses of network and website disruptions pose a threat to organizations in all industries. However, some industries are more likely to be affected by this type of cyber incident than others.

According to information from Advisen, the public administration sees about a third (34%) of all losses from network and website disruptions. One reason may be that the public administration includes state and local authorities, which is a common target for hacktivists. In addition, malicious actors can also target public administration to disrupt communication and limit information to weaken governments.

The information sector sees the second most common amount of network and website disruptions at 24%. This sector, which includes broadcasters, telecommunications and publishing companies, can be a preferred target as they are often well known and highly visible, which increases the chance that the press will cover the attack.

The effect of network and website disruptions

DDoS attacks

Losses

Loss of business revenue or services is the most common consequence of a network and website outage. However, the advice data shows that a loss of digital assets also occurs in 8% of the losses from network and website disruptions. Loss of digital assets refers to the corruption or destruction of business data or software as a result of a network failure. In addition, a loss of financial assets (ie bank balances, bonds, cash or contracts) was a result of 1% of the losses from network and website disruptions.

Fortunately, there are a number of measures that organizations can implement to identify and block DDoS attacks.

Identify DDoS attacks

The symptoms of a DDoS attack can be similar to common technical problems. Therefore, it is important for organizations to be aware of the following warning signs:

  • Slower charging times
  • Inability to access certain websites
  • Problems accessing the internet
  • An excessive amount of spam

To protect important networking features from DDoS attacks, it is important for all organizations to have prevention plans in place.

Prevent DDoS attacks

Organizations should consider the following steps to avoid and mitigate DDoS attacks:

  • Use one virtual private network (VPN). VPN masks and encrypts IP addresses and other identifiable network elements.
  • Install antivirus software. Antivirus software can identify and block the types of malware used by DDoS hackers.
  • Sign up for a DDoS protection program. DDoS protection services are designed to identify abnormal traffic and direct it away from the corporate network.
  • Evaluate safety practices. Maintain good safety routines. This includes limiting the number of people with access to important information and dealing with unwanted traffic.
  • Create a disaster recovery plan. Plan ahead to create a communication, restraint, and recovery plan in the event of a cyberattack.
  • Secure enough insurance coverage. It is important to purchase adequate insurance to protect against losses that may arise from DDoS incidents. It is best to consult a trusted insurance specialist to discuss specific coverage needs.

Conclusion

DDoS attacks are a growing problem for organizations. By implementing appropriate prevention strategies and having action plans in place, companies can protect themselves against this cyber threat. If you want additional information and resources, we are here to help you analyze your needs and make the right coverage coverage to protect your business from unnecessary risks. You can download a free copy of our e-book, or if you are ready make Cyber ​​Liability Insurance part of your insurance portfolio, Request a suggestion or download and get started with our Cyber ​​& Data Breach Insurance Application and we’ll get you started.


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