Cost of Living is Driving Fraud and Cyber Risk


The cost of living is rising fast. Official inflation rates vary, but the reality is being felt by people around the world as food, fuel, energy and other essentials are increasing by anything from 20% to almost 100%.

That will inevitably lead to increased attempts at fraud, exaggerated claims, ID manipulation and more. BAE Systems Digital Intelligence takes a look at the cyber & fraud risk landscape and how insurers can navigate through it.

According to the government *, some 39% of UK businesses had reported a cyber attack in the previous 12 months. Typically the cost of dealing with each incident, for larger businesses, was around £19,400. The report also flagged that around 16% of businesses reported using versions of MS Windows older than 8.1.

But cyber attacks have been morphing over recent years, from Denial of Service (DDOS) plus ransom, or hacking of data, into attacks on physical assets, such as pipelines, energy distribution or key buildings. For example a Lloyd’s report in June 2022 looked at how vulnerable modern systems are to third party control.


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