Business News

CCTV Script 16/05/17


This is the script of CNBC's news report for China's CCTV on May 16, Tuesday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Hackers who locked files on 200,000 computers globally and asked for a bitcoin ransom payment to unlock them, have only made around $50,000, an industry source told CNBC, despite the large scale of the attack.

On Friday, a virus known as WannaCry infected machines across 150 countries. It's known as ransomware which is a malicious piece of software that encrypts a user's files then demands them pay money to unlock them.

According to Reuters, cyber risk modeling firm Cyence estimated the average individual ransom cost from Friday's attacks at $300, and the total economic costs from interruption to business at $4 billion.

CNBC spoke to Charif Elansari, the CEO of Singapored-based data service firm Dropsuite. He said this attack is the worse he's ever seen, and might just be the beginning.

[Charif Elansari, Dropsuite CEO] "Just imagine the internet of things, just imagine diverless cars being hacked, refrigerators?? then what's that, I think we have to be very very careful going forward. And there has to be multiple things they can take care of. One is by software venders. There has to be economic incentives for them to do this, and even though I'm an entrepreneur, but there has to be some regulation by the government to ensure some really hard things dont happen in the future, especailly with the growth of internet of things and diverless cars."

A new breed of coverage couldn't come at a better time for insurers, which are struggling to expand in most of their established markets amid slow economic growth and low catastrophe claims that weigh on prices. Analysts estimate that cyber insurance premiums could rise to between US$8.5 billion and US$10 billion by 2020 from about US$3.4 billion currently.

Meanwhile, Cybersecurity stocks surged on Monday following cyberattack on Friday.

The PureFunds ISE Cyber Security ETF (HACK) gained more than 3 percent by Monday's close.

CNBC analyzed the last 15 major cyberattacks using analytics tool Kensho, finding that a month after an attack, the major cybersecurity players did even better as demand for their services increased.

CNBC's Qian Chen, reporting from Singapore