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Our latest cyber snapshot: cybersecurity will see a subtle but important evolution in 2023

January 31, 2023

Noting 13% year-over-year growth in fraudulent instruction as a cause of loss, report predicts organizations must get smarter about educating employees to spot fraudulent tactics

From tactics to implications, cybersecurity will see a subtle but important evolution in 2023 according to Beazley’s new Cyber Services Snapshot report, which was released today. The report reveals that the cyber threat landscape will be influenced by greater incident complexity, the way threat actors use stolen data, and a rise in US class actions in 2023.

The report presents global data on incidents handled by Beazley Cyber Services including cause of loss by industry, ransomware vectors, business email compromise, and data exfiltration. These data points provide a real-time view into incidents reported to Beazley, revealing an ongoing picture of emerging cyber risk. In addition, all Beazley Cyber Services Snapshots feature insights from professionals on the front line of Beazley’s incident response teams around the world.

As a category, fraudulent instruction experienced big growth as a cause of loss in 2022, up 13% year-over-year. This trend continues to be quite high, especially when it comes to small organisations.

To combat this vulnerability, the report suggests, organisations must get smarter about educating employees to spot fraudulent instruction tactics like spoofed emails or domain names. Organisations are cautioned to watch for social engineering and spear phishing, bypassing of Multi-Factor Authentication, targeting of Managed Service Providers, and compromising of cloud environments as areas of vulnerability.

“At first glance, things hardly seem particularly new as we enter 2023: threat actors are still using the same kinds of ransomware vectors to attack, and we’re still talking about the same need for education and controls,” said Russ Cohen, Beazley’s Head of US Cyber Services. “But look beneath the surface, and it quickly becomes evident that targeted organisations are facing greater incident complexity than ever before. As threat actors bring new sophistication to their techniques and adapt to improved cybersecurity efforts, more and more companies will realize they can no longer count on the default configuration of off-the-shelf IT solutions and tools.”

Beazley provides best-in-class support, services, and tools to help insureds mitigate risk and recover quickly in the event of a breach.

For further information, please contact:
Beazley Group 

Sam Whiteley
T +44 (0)20 7674 7484
Emily Rogers
T +44 (0)20 7674 7517

Note to editors:
Beazley plc (BEZ.L) is the parent company of specialist insurance businesses with operations in Europe, United States, Canada, Latin America and Asia. Beazley manages six Lloyd’s syndicates and, in 2021, underwrote gross premiums worldwide of $4,618.9m. All Lloyd’s syndicates are rated A by A.M. Best. 
Beazley’s underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all 50 states. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd’s.
Beazley’s European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is A rated by A.M. Best and A+ by Fitch.
Beazley is a market leader in many of its chosen lines, which include professional indemnity, cyber, property, marine, reinsurance, accident and life, and political risks and contingency business. 
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