Cybercrime is on the rise, and businesses are feeling the heat. A recent report highlights the growing challenges organizations face in protecting sensitive information. According to Statista, over half of U.S. companies—52%—reported losing sensitive data to cybercriminals in 2024. Alarmingly, 26% of these incidents involved business email compromises. The financial impact is staggering, with the average cost of a data breach in the U.S. hitting $9.36 million.
Trent Cooksley, co-founder and COO of Cowbell, a company specializing in cyber insurance, shared insights on this troubling trend. He noted that the demand for cyber insurance is soaring as organizations recognize the need for protection against these threats. However, Cooksley pointed out that many small and medium-sized businesses in the U.S., U.K., Europe, and Asia-Pacific still have not fully embraced cyber insurance, leaving them vulnerable.
Cooksley emphasized that cyber incidents are not decreasing. In fact, attackers are becoming more sophisticated, employing tactics like ransomware and social engineering scams. The landscape is evolving rapidly, with new threats emerging almost daily. Data breaches continue to be a significant concern, leading to cleanup costs, fines, and lawsuits for affected businesses.
To combat these threats, Cooksley advocates for education. He believes that organizations must train their employees to recognize scams and understand the importance of cybersecurity. Cowbell offers free training to its policyholders to help them stay informed about the latest threats and best practices.
The role of artificial intelligence (AI) in this battle is twofold. On one hand, cybercriminals use AI to enhance their attacks, crafting convincing phishing emails and scanning for vulnerabilities at lightning speed. On the other hand, AI can also help businesses protect themselves by monitoring networks and detecting unusual activity in real-time.
As the cyber landscape shifts, Cooksley stresses the need for insurance policies to adapt alongside technological advancements. Organizations are beginning to understand the importance of cyber insurance, especially smaller companies that previously underestimated their exposure to cyber threats.
Looking ahead, the future of cybercrime and its impact on insurance will continue to evolve. Cooksley believes that as technology changes, so too must the approaches to coverage and protection. The ongoing battle between cybercriminals and businesses underscores the need for constant vigilance and adaptation in the face of ever-changing threats.