Cybercrime in the U.S. — Escalation and Adaptation

Cybercrime in the United States has reached critical levels, with economic damages and operational disruptions intensifying year over year. According to the FBI’s Internet Crime Complaint Center (IC3), more than 1 million complaints were filed in 2024, representing over $12.5 billion in reported losses—a staggering 30% jump from 2023. And as 2025 unfolds, early indicators suggest even greater vulnerability across sectors.

High-Profile Incidents

Recent attacks spotlight both the scale and creativity of cybercriminals:

• Change Healthcare (UnitedHealth, Feb 2024): A ransomware assault paralyzed nationwide billing systems, delaying reimbursements and threatening patient care logistics. The disruption exposed systemic risk in healthcare IT.
• LoanDepot Breach (Jan 2024): Hackers accessed sensitive financial data on 16.6 million borrowers. Fallout included regulatory probes and costly litigation tied to consumer privacy violations.
• Dallas County Government Attack (Apr 2024): Criminals published sensitive documents online after ransomware demands were refused, underscoring vulnerabilities in public-sector data governance.

These examples represent a broader pattern: attackers aren’t just chasing money—they’re disrupting infrastructure, weaponizing information, and exploiting third-party systems with surgical precision.

Cybercrime Trends to Watch

Several key trends define today’s digital threat landscape:

• Ransomware tactics have evolved, with “double extortion” now standard: files are encrypted, and sensitive data is leaked or threatened to pressure payment.
• AI-powered phishing is on the rise. Attackers use generative tools to mimic real employees, personalize bait emails, and bypass spam filters.
• Third-party risks are multiplying, especially in sectors like healthcare, education, and finance. Vendors with outdated protocols create soft entry points into otherwise secure systems.
• Even small and mid-sized firms are increasingly targeted—not because they’re high-value, but because they’re under-defended.

The message is clear: every business with customer or financial data is in the crosshairs.

How Businesses Can Respond

To minimize risk, organizations should:

• Prioritize regular software updates and security patching
• Require multi-factor authentication (MFA) on all systems
• Roll out cybersecurity training with realistic phishing simulations
• Invest in endpoint protection and behavior-based threat detection tools
• Formalize a crisis response strategy, including legal counsel and PR planning

Cybersecurity is no longer an IT silo—it’s a board-level concern tied directly to business continuity and brand reputation.

Insurance Products to Consider

Modern cyber insurance offerings are evolving to reflect current threats:

• Cyber Liability Insurance
  • Covers breach response, forensics, business interruption, legal defense, fines, and ransom negotiation
  • Often includes incident response coordination and media handling
• Tech E&O (Errors & Omissions)
• Ideal for SaaS and IT firms
• Covers liability from failed services or negligent performance that results in client loss
• Crime Insurance
  • Focuses on social engineering, wire fraud, and employee theft
  • Often paired with cyber coverage for comprehensive protection

Underwriting requirements are tightening. Insurers now expect proactive risk management—strong security protocols, clean audits, and incident planning—as a baseline for coverage eligibility and pricing.

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In this issue:

This Just In ... The Property &Casualty Insurance is showing signs of softening, especially after several years of steep rate hikes

Cybercrime in the U.S. — Escalation and Adaptation

Three Key Terms Business Insurance Policyholders Should Understand

The State of D&O Insurance in 2025

Emerging D&O Risks That Demand Board-Level Attention

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