Coordinated global cyberattack could cause up to $193 billion worth of damage: report

Service-dominated economies, including the US, would suffer more and are vulnerable to higher direct losses, the report said. Above, FBI brochures on combating cybercrime on display during a cybercrime prevention symposium on October 16, 2017. (AFP)
Updated 29 January 2019
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Coordinated global cyberattack could cause up to $193 billion worth of damage: report

  • Insurance claims after such an attack would range from business interruption and cyber extortion to incident response costs
  • Cyberattacks have been in focus after a virus spread from Ukraine to wreak havoc around the globe in 2017

BENGALURU: A coordinated global cyberattack, spread through malicious email, could cause economic damages anywhere between $85 billion and $193 billion, a hypothetical scenario developed as a stress test for risk management showed.
Insurance claims after such an attack would range from business interruption and cyber extortion to incident response costs, the report jointly produced by insurance market Lloyd’s of London and Aon said on Tuesday.
Total claims paid by the insurance sector in this scenario is estimated to be between $10 billion and $27 billion, based on policy limits ranging from $500,000 to $200 million.
The stark difference between insured and economic loss estimates highlights the extent of underinsurance, in case of such an attack, the stress test showed. An attack could affect several sectors globally, with the largest losses in retail, health care, manufacturing and banking fields.
Regional economies that are more service dominated, especially the United States and Europe, would suffer more and are vulnerable to higher direct losses, the report said.
Cyberattacks have been in focus after a virus spread from Ukraine to wreak havoc around the globe in 2017, crippling thousands of computers, disrupting ports from Mumbai to Los Angeles and even halting production at a chocolate factory in Australia.
Governments are increasingly warning against the risks private businesses face from such attacks, both those carried out by foreign governments and financially motivated criminals.
For example, Britain’s National Cyber Security Center announced on Friday it was investigating a large-scale Domain Name System (DNS) hijacking campaign that hit governments and commercial organizations across the world.
In another recent incident, French engineering consultancy Altran Technologies was the target of a cyberattack that hit its operations in some European countries.
On a larger scale, personal data and documents from hundreds of German politicians and public figures, including Chancellor Angela Merkel, were published online in what appears to be one of Germany’s most far-reaching data breaches.
The report was also co-produced by MSIG, SCOR TransRe and Cyber Risk Management.


Jet Airways now operating only 41 aircraft, could reduce further: regulator

The debt-laden carrier has delayed payments to banks, suppliers, pilots and lessors. (Reuters)
Updated 19 March 2019
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Jet Airways now operating only 41 aircraft, could reduce further: regulator

  • Jet Airways may reduce the number of aircraft it is flying in coming weeks
  • The debt-laden carrier has delayed payments to banks, suppliers, pilots and lessors
NEW DELHI: India’s aviation regulator said on Tuesday that Jet Airways is currently operating only 41 aircraft, just a third of its original fleet, as the debt-laden carrier struggles to finalize a rescue deal with lenders and its major shareholder Etihad Airways.
The Directorate General of Civil Aviation (DGCA) said in a statement the situation is fluid and that Jet may reduce the number of aircraft it is flying in coming weeks.
Saddled with debt of more than one billion dollars, Jet has delayed payments to banks, suppliers, pilots and lessors — some of whom have ended lease deals with the airline before taking the planes out of the country.
The DGCA also said that pilots, cabin crew and ground staff who have reported any kind of stress should not be put on duty, and the airline should carry out regular maintenance of its aircraft even if they are currently grounded.