2026-10-29 · Source: CIO
Summary in 3 Points • Merck & Co. faced over $1.4 billion in damages from the NotPetya malware attack in 2017. • AI-enabled breaches rose to 21% of all incidents, highlighting a shift in cyber threats. • Johnson Controls incurred over $27 million in costs due to a ransomware attack in 2023, demonstrating vulnerabilities in perimeter security. --- In June 2017, Merck & Co. suffered a significant breach due to NotPetya malware, resulting in damages exceeding $1.4 billion. This incident highlighted the inadequacies of traditional security models, as insurers contested claims based on war exclusions, leading to a confidential settlement in January 2024. The evolving threat landscape is underscored by IBM's report indicating that AI-enabled breaches now account for 21% of incidents, with the average breach costing around $6 million. Additionally, Johnson Controls experienced a ransomware attack in 2023, incurring over $27 million in costs, further illustrating the vulnerabilities of relying solely on perimeter security. The rise of AI-enabled breaches and significant costs from ransomware attacks signal a need for insurers to reassess risk models and coverage in cyber insurance.
The rise of AI-enabled breaches and significant costs from ransomware attacks signal a need for insurers to reassess risk models and coverage in cyber insurance.