Presentation Material

Abstract

Ransomware is a volume crime, and one that is very quantifiable. Cyber insurance likes the quantifiable risks, with a large body of actuarial data, to be confident about sustainably financing solutions. However, those profiteering gluttons always try to turn a profit! How much profit?

To find out, we would need to see what a not-for-profit model of ransomware looked like. So, we tried to imagine one and fill in the values.

Come, see how an economic model can be built from real-world data on ransomware!

Or, if the talk doesn’t interest you, enjoy the Italo Calvino-Storm Trooper Wordcloud.

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Here is a summarized version of the content:

The speaker discusses the cost of malware cleanup, specifically ransomware attacks. They mention that the average cost of cleanup could be around $90 per computer, but this number may vary depending on the type of attack and services offered. The government’s payment subsidy into the system might be around 66 cents per computer.

Using some calculations, the speaker estimates that if one in 20 people pay the ransom, the total cost to society would be around $130 million. This is less than what the criminals make from these attacks, highlighting the economic concept of externality.

The insurance industry is also affected by ransomware attacks, with estimated losses potentially reaching $3 billion. The speaker suggests that creating mutuals or not-for-profit insurance cooperatives could help mitigate these costs. They also mention that banning encryption on machines may not be a realistic solution.

Finally, the speaker answers some questions from the audience, including one about the estimate of $3 billion in losses to the insurance industry and how it relates to different types of insurance policies.