Economic Losses From Cyber Attacks Could Match Superstorm Sandy

Published August 1, 2017

According to a recent article in The Independent, a major global cyber attack could wreck £41B worth of economic damages, a figure on par with US Superstorm Sandy.

The cited report, co-authored by Lloyd’s of London and Cyence, studied “potential economic losses from the hypothetical hacking of a cloud service provider and cyber attacks on computer operating systems run by businesses worldwide.” Researchers found that the potential damages from a well-executed, major global cyber attack could dwarf those associated with the recent Wannacry ransomware attack, to the tune of an almost 7x multiplier.

The report was issued in the aftermath of a hacking campaign targeting American energy and nuclear assets. That campaign prompted the US Government to issue a warning to industrial firms. Researchers noted that in the case of a large to extreme attack event, such as one on critical infrastructure, current cyber insurances may only cover half or less of attack-related damages. Specific hardware security or software solutions were not mentioned in the scope of the article.

Check out the full article from The Independent.

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