Adding Q1 data to our quarterly claims charts enables us to draw some conclusions about the effectiveness of the controls our clients are implementing. As we also reflected in these tables, security is not a one-shot solution, continued diligence is essential.
When it comes to fraudulent instruction, government and non-profits have seen the proportion of their incidents related to fraudulent instruction increase. The hidden story here is professional services. This industry has been a continuous target and suffered the most incidents of any industry in both 2022 and Q1 2023. While their proportion of incidents related to fraudulent instruction has crept up only slowly since 2021, their total number of fraudulent instruction incidents is more than double that of any other industry since 2021.
Though the cyber insurance industry as a whole is still seeing significant incidence of business email compromise, the security steps taken by our clients have resulted in a decrease in these incidents for the first quarter since Q4 of 2021.
Data exfiltration numbers show a small dip from Q4 (potentially because of certain cybercriminal groups who target smaller organisations and are primarily interested in encryption tactics), but still remain elevated overall.
Ransomware incidents demonstrate increased exploitation of software vulnerabilities; particularly notable is the speed of mass exploitation these incidents represent. The fairly even split among ransomware vectors underscores the importance of Defence in Depth.
The information set forth in this document is intended as general risk management information. It is made available with the understanding that Beazley does not render legal services or advice. It should not be construed or relied upon as legal advice and is not intended as a substitute for consultation with counsel. Beazley has not examined and/ or had access to any particular circumstances, needs, contracts and/or operations of any party having access to this document. There may be specific issues under applicable law, or related to the particular circumstances of your contracts or operations, for which you may wish the assistance of counsel. Although reasonable care has been taken in preparing the information set forth in this document, Beazley accepts no responsibility for any errors it may contain or for any losses allegedly attributable to this information.