Massive digital catastrophe might create far-reaching disruptions in international infrastructure, research indicates
In the modern digital age, the interconnectedness of internet-of-things devices in homes and industrial settings, as well as the rise of artificial intelligence large language models, presents a significant new risk. A global malware attack could potentially infect approximately one-quarter of the world's computer systems, according to experts.
However, a new report by CyberCube and Munich Re offers a glimmer of hope. The study, based on a survey of 93 leading cyber-risk executives, aims to address concerns about how the insurance industry can model catastrophic cyber-risk events.
The report suggests that organizations can significantly mitigate the impact of widespread computer infections by implementing strategic measures.
1. **Patch Management**: Regularly updating software and systems with the latest patches can prevent malware from exploiting known vulnerabilities, reducing the likelihood of infection.
2. **Network Segmentation**: Dividing a network into smaller segments can limit the spread of malware in case of an infection, reducing the overall impact on the organization.
3. **Data Backups**: Maintaining current and secure backups of critical data can help organizations recover quickly if they fall victim to a malware attack, minimizing data loss.
According to Jon Laux, VP of analytics at CyberCube, successful implementation of these strategies could reduce the impact of a widespread infection by 50%. In extreme cases, the impact could be reduced by 80%.
The WannaCry and NotPetya events nearly a decade ago illustrated the consequences of mass infections, affecting thousands of computers worldwide and disrupting businesses like FedEx and Maersk. Another event on the scale of NotPetya is not unlikely, according to the report's experts. The NotPetya malware event was extremely damaging to affected countries and organizations.
Stephan Brunner, senior cyber actuary at Munich Re, stated that the objective of the study was to advance overall market understanding and help shape a more nuanced view of how systemic cyber events might unfold. A major cloud security outage could last for up to 72 hours, and a single-day outage of major cloud providers could cost companies approximately 1% of their annual revenue.
In the face of these potential threats, it is crucial for organizations to enhance their patch management, network segmentation, and data backup practices. By doing so, they can significantly reduce the likelihood and financial impact of malware attacks.
In light of the study by CyberCube and Munich Re, effective patch management can help reduce the likelihood of malware exploiting known vulnerabilities. This, in turn, could decrease the impact of a widespread infection by 50%.
Network segmentation, another strategic measure, can limit the spread of malware in case of an infection, thereby reducing the overall impact on the organization.
Maintaining current and secure data backups is essential for organizations to recover quickly if they fall victim to a malware attack, minimizing data loss. Implementing these strategies could potentially reduce the impact of a widespread malware attack by up to 80%.
