Businesses risk ‘catastrophic financial loss’ from cyberattacks, US watchdog warns

Photo by Amelia Holowaty Krales / The Verge

A government watchdog has warned that private insurance companies are increasingly backing out of covering damages from major cyberattacks — leaving American businesses facing “catastrophic financial loss” unless another insurance model can be found.

The growing challenge of covering cyber risk is outlined in a new report from the Government Accountability Office (GAO), which calls for a government assessment of whether a federal cyber insurance option is needed.

The report draws on threat assessments from the National Security Agency (NSA), Office of the Director of National Intelligence (ODNI), Cybersecurity and Infrastructure Security Agency (CISA), and Department of Justice to quantify the risk of cyberattacks on critical…

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Author: Corin Faife