The Allianz Risk Barometer 2024 reports that by the start of the next decade, ransomware activity alone is projected to cost its victims $265 billion annually, according to Cybersecurity Ventures.

The Barometer, published annually by Munich, Germany-based Allianz, one of the world’s leading insurers and asset managers with more than 122 million private and corporate customers in more than 70 countries, states that so called Ransomware-as-a-Service (RaaS) kits, where prices start from as little as $40, have been a key driver in rising activity during 2023.

Gangs are also carrying out more attacks faster, with the average number of days taken to execute one falling from around 60 days in 2019 to four, according to Allianz, who notes that ransomware claims activity was up by more than 50 percent year-on-year in 2023.

Most ransomware attacks now involve the theft of personal or sensitive commercial data for the purpose of extortion, increasing the cost and complexity of incidents, as well as bringing greater potential for reputational damage.

Allianz Commercial’s analysis of large cyber losses (€1mn+) in recent years shows that the number of cases in which data is exfiltrated is increasing – doubling from 40 percent in 2019 to almost 80 percent in 2022, with 2023 activity tracking even higher.

“Protecting an organization against intrusion is a cat and mouse game, in which the cyber criminals have the advantage,” says Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial. “Threat actors are now exploring ways to use artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing. Combined with the explosion in connected mobile devices and 5G-enabled Internet of Things (IoT), the avenues for cyberattacks look only likely to increase in future.”

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