The Alarming Rise of Ransomware Attacks: A Deep Dive into the Healthcare Sector

Healthcare Under Siege: The Universal Health Services Inc. Case

In late September, Universal Health Services Inc., one of the largest hospital chains in the United States, experienced a significant ransomware attack that forced them to take some ambulances out of service. Although no patients were harmed, the attack disrupted systems supporting medical records, laboratories, and pharmacies across approximately 250 facilities. This incident highlights a growing trend of healthcare institutions being targeted by ransomware attacks, as hackers' software becomes more sophisticated and their attacks more widespread.

Cyber Insurance Claims: A Snapshot of 2020

According to a recent report by Coalition, a provider of cyber insurance, certain industries, including consumer businesses (retail, hospitality, and food), healthcare, and financial services, were more frequent targets of cyberattacks in the first half of 2020. Ransomware (41 percent), funds transfer loss (27 percent), and business email compromise incidents (19 percent) were the most frequent types of loss, accounting for 87 percent of reported incidents and 84 percent of claims paid. The report noted a sharp increase in ransom demands over the past quarter, as threat actors exploited COVID-19 and changes in company operating procedures.

Protecting Your Business: Practical Steps and the Role of Cyber Insurance

Since email is the single most targeted point of entry for hackers, taking basic email security measures and implementing an anti-phishing solution can significantly enhance your business's security. Coalition reports that cyber insurance played a critical role in helping insured recover operationally. For instance, a nonprofit organization providing child and family services grants to other nonprofits was duped into transferring $1.3 million to criminals. Coalition worked with law enforcement and the financial institutions involved to recover the stolen funds.