The ransoms are skyrocketing

The shipping industry remains an easy target for cybercriminals. In the past year, the number of ransoms paid in cyberattacks has increased by 357 percent, while the costs for shipping operators have increased by 200 percent. This is shown by a new international report.

The report Shifting tides, rising ransoms and critical decisions shows that a cyber attack in the shipping industry now costs the affected organization $550,000 on average. Last year, the corresponding figure was 182,000 dollars. Costs largely consist of new cyber security technology, IT, outside counsel, business interruption and delays, and costs to replace or restore systems.

For the report (which was prepared by the law firm HFW, the maritime cyber security company CyberOwl and the maritime research center Thetius) interviews with 150 actors in shipping were made.

“Just over one in three states that they have been exposed to cybercrime in the past three years, which is roughly the same number as last year”, said Nick Chubb at Thetius when the report was presented at a webinar this week.

However, more pay ransoms. In last year's study, 3% reported doing so in connection with attacks, while 14% did so this year - an increase of 357%! And they pay well – an average of 3.2 million dollars!

Of the victims of cybercrime, one in four had been tricked into transferring large sums of money to the criminals.

“That's the kind of thing you usually warn your grandmother about; to never transfer money to strangers. It is very common to let yourself be deceived by scammers in the industry”, said Nick Chubb.

This often has sad consequences – 37 percent stated that they lacked insurance that covers the crimes they were exposed to. But despite all the scary numbers, there are bright spots, according to the report. Last year over half of shipping companies said they spent less than $100,000 on cyber security, this year that group had shrunk to just over a third.

“Awareness that cyber security is important has increased and it has also become much better. It's just that cybercriminals always seem to be one step ahead”, Nick Chubb said.

Download the report

See the presentation of the report