Insurers Face Rising Cyber Threats as Scattered Spider Shifts Focus
British insurers are bracing for an escalating wave of cyberattacks after the notorious hacking group Scattered Spider pivoted from targeting retailers to insurance and financial services companies across the Atlantic. Google’s Threat Intelligence Group has issued a warning, identifying multiple intrusions in the United States bearing the group’s hallmark tactics.
Analysts believe Scattered Spider is behind recent outages at Philadelphia Insurance Companies and Erie Insurance, two firms grappling with widespread disruption and regulatory scrutiny. The group’s tactics often involve impersonating employees to manipulate IT support teams, allowing attackers to bypass multi-factor authentication.
“We are now seeing incidents in the insurance industry,” said John Hultquist, Google’s chief cyber analyst. “Given this actor’s history of focusing on a sector at a time, the insurance industry should be on high alert – especially for social engineering schemes targeting help desks and call centers.”
The warning follows a major cyberattack on Marks & Spencer, believed to have been orchestrated by the same group. The incident disrupted online sales for weeks and prompted a record-breaking cyber insurance claim exceeding £100 million. Allianz, M&S’s primary cyber underwriter, faces an initial £10 million payout.
Rising Stakes for the Insurance Sector
The insurance industry, traditionally a backstop for corporate risk, now finds itself in the firing line. Experts warn that firms with large call center operations and decentralized IT systems are particularly vulnerable to deception-based attacks.
Erie Insurance, operating across 12 US states, is one of the latest victims, facing a proposed class action alleging insufficient cyber defenses exposed customer data. Philadelphia Insurance, part of Tokio Marine group, was forced to shut down operations after a suspected ransomware attack.
Premiums to Climb Amid Systemic Concerns
The M&S claim is expected to impact the cyber insurance market significantly. Analysts predict that premiums may double upon renewal given the scale of the event. The case serves as a litmus test for insurers’ preparedness to respond to complex attacks.
UK concerns are mounting about business resilience to such events, with government data showing only 8% of UK companies have standalone cyber insurance. Experts believe cyber coverage is becoming both more costly and essential.
For insurers, the Scattered Spider campaign is a wake-up call. For the wider UK business community, it’s a stark reminder that digital resilience is no longer optional.
