RANSOMWARE – INSURANCE CONNECT

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In the capitalist / consumerist world model everything seems to be sleazy in more ways than one, even the most professional on the face of it. Ransomware attack’s business model in the US is beyond the understandable realm of the hacker. There’s really good money in ransomware not only for the hacker but for the recovery experts and the insurers. It seems to be an ultimate revelation that routine ransom payments in the US have created a vicious cycle, it has already become a hard cycle to break because everyone involved profits.

With 22 Texas towns hit by coordinated ransomware attack as the latest of the recent attacks on the US municipalities, a more comprehensive analysis of the malaise is slowly emerging. The roles of insurers is coming under a huge clout. Even when the public agencies and business companies have the capability to recover the files on their own, the insurers prefer / advice to pay ransom. And going by the customers mindset lots end up paying. There is another round about system where the insurance amount to be paid includes the ransomware.

Ransomware is proliferating across America, disabling computer systems of city corporations, city governments, schools and police departments. Overlooked is the role of the insurance which both benefits and fuels into it. Cyber insurance has reached $7 billion / $8 billon levels. Paying ransoms directly contributes to its profitability leading to more such attacks. The money might end up paying terrorist regimes. The insurers logic is diametrically the opposite.

The insurance company by ransom payment is able to hold down costs by avoiding expenses related to covering lost revenue due to snarled services, ongoing fees for consultants aiding in data recovery and other such contractual financial commitments. By rewarding hacker thus, it is further encouragement to ransomware attacks which in turn frightens businesses and governments to buying polices. Perverse reality of crash commercialisation.

FROM SUBPRIME MORTGAGE CRISIS TO RANSOMWARE MONETISATION IS THE CURSE OF CRASH COMMERCIALISATION.

Sanjay Sahay

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