Cyber attack on U.S. power grid could cost economy $1 trillion: report

Reuters reports: A cyber attack which shuts down parts of the United States’ power grid could cost as much as $1 trillion to the U.S. economy, according to a report published on Wednesday.

Company executives are worried about security breaches, but recent surveys suggest they are not convinced about the value or effectiveness of cyber insurance.

The report from the University of Cambridge Centre for Risk Studies and the Lloyd’s of London insurance market outlines a scenario of an electricity blackout that leaves 93 million people in New York City and Washington DC without power.

The scenario, developed by Cambridge, is technologically possible and is assessed to be within the once-in-200-year probability for which insurers should be prepared, the report said. [Continue reading…]

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