How Are Cyber Insurance Companies Assessing Ransomware Risk?
May 2021, the operator of a large pipeline system that transports fuel across the east coast was the victim of a ransomware attack that resulted in a six-day shutdown. The following week, gasoline supplies on the east coast fell by about 4.6 million barrels and gas prices rose to their highest level in six and a half years. The 5,500 mile pipeline provides approximately 45 percent of the fuel supply for the east coast and provides critical infrastructure for consumers from the Gulf Coast to Linden, New Jersey. Amid mounting public pressure to respond and devastating losses to the companys operating income, the company approved Operator made a $ 4.4 million ransom payment to hackers. In May 2021, one of the worlds largest meat suppliers announced that it had been attacked by a ransomware attack that forced the company to shut down its meat processing operations in North America. Since the meat processing companies depend on automation and computers for the production process as well as order processing, billing and shipping, the company had no choice but to cease operations. The company has not disclosed whether it paid a ransom as part of its efforts to get back online.