Cyberwrite Research for Mastercard: Cyber-Attacks on Israeli Municipalities May Lead to 4.5B ILS in Damages
Cyberwrite, in collaboration with Mastercard, shared insights from a recent cyber-risk financial impact research study examining the potential cost of coordinated cyberattacks on Israeli municipal organizations.
Research Findings
The research, conducted using Cyberwrite's AI-powered financial impact modeling platform, analyzed the digital infrastructure and cyber exposure of municipal organizations across Israel. The study found that a coordinated cyberattack targeting multiple municipalities simultaneously could result in financial damages exceeding 4.5 billion Israeli Shekels (ILS) — accounting for business interruption, data recovery, regulatory fines, emergency response costs, and third-party liability.
Key risk factors identified included: aging IT infrastructure with unpatched vulnerabilities; limited cybersecurity budgets and staffing; shared service providers creating systemic attack vectors; significant quantities of citizen PII and sensitive governmental data; and inadequate incident response preparedness.
Methodology
Cyberwrite's analysis combined external scanning of each organization's digital footprint with financial modeling derived from its proprietary breach database and claims history. Rather than using industry average assumptions, the research generated organization-specific exposure estimates — reflecting each municipality's actual technology stack, network exposure, and data sensitivity.
Implications for Cyber Insurance
The research highlights the critical importance of governmental and public sector cyber insurance — a segment that remains significantly underinsured globally. Municipal organizations face the same cyber threats as commercial enterprises but often have more constrained budgets, more sensitive citizen data, and higher reputational stakes when incidents occur. Cyberwrite's ability to rapidly assess and quantify cyber risk for any organization — including public sector entities — enables insurers to extend coverage to this underserved market with the data-driven confidence needed to price it accurately.
About the Mastercard Partnership
This research was conducted as part of Cyberwrite's participation in the Mastercard Start Path program — a global startup engagement initiative that selected Cyberwrite as one of seven fintechs globally based on the potential of its technology to help build the future of commerce and financial security.