A coordinated malware attack rapidly spreading across the world could cause catastrophic-level losses, with healthcare organizations feeling a heavy burden, according to a new report.
While it hasn’t happened, a global ransomware attack could cost up to $193 billion according to a hypothetical scenario from the Cyber Risk Management (CyRiM) project, led by Nanyang Technological University and insurance industry partners Lloyd’s and Aon.
Researchers speculated that an insurance gap of 86 percent exists, which would mean $166 billion of the likely economic costs would not be insured.
The report also predicted that retail and healthcare industries would be most affected by the envisioned ransomware attack.
In the scenario, the healthcare sector would suffer a $10 billion economic loss globally.
According to the report, healthcare would suffer due to the malware’s penetration of legacy systems on old healthcare IT equipment.
Replacing the systems is costly, and the CyRiM predicts this would cause significant delays in the recovery process and would lead to a loss of revenue.
Historically, the healthcare sector has been vulnerable to high levels of malware infection due to legacy IT infrastructure systems, which are more susceptible, and a low investment in IT.
The United States would be the hardest hit region financially, with an estimated $89 billion at risk.
“The scenario challenges assumptions of global preparedness for a cyber-attack of this nature and sends a clear message to organizations – individual entities, industry associations, markets and policymakers – that they must improve their awareness, and assessment of this threat,” the report concludes.
Read the full report “Bashe Attack: Global infection by contagious malware” here.
Chivaroli and Associates Insurance Services is a full-service brokerage firm specializing in the custom-design and placement of insurance and alternative risk funding solutions for your healthcare organization.