Ransomware and cyber-attacks are getting stronger and more progressive. Though many businesses think that they are ready to deal with the repercussions, it is often difficult to comprehend the level of ruthlessness and cunning with which these criminals operate. To top it all off, the costs of a ransomware attack aren’t just financial and can ultimately ruin a business.
The methods that cybercriminals use have become more innovative, complex, and sophisticated over time. They are also getting better and quicker at implementing their strategies to target high values and pull down entire IT systems in workplaces.
Many businesses are ready to pay a high ransom to get back their compromised data. However, this only fuels a vicious cycle which encourages cybercriminals to victimize others.
Being vigilant, aware, and understanding the implications of ransomware is imperative to being adequately prepared to deal with an attack. With suitable security measures, employee training, and data backups in place, your company can be well equipped to deal with these conniving criminals.
Cybersecurity breaches and ransomware attacks have far-reaching financial consequences and can cause reputation loss. Let’s explore some of the lesser-known costs of a ransomware attack.
1. Public disclosure of sensitive business data and hefty fines for violation of regulations
If you refuse to pay the ransom demanded by the cybercriminal, they may threaten to disclose your sensitive organizational data publicly or misuse it in other ways. This can have long-lasting consequences for your business, and it could take a long while to mend the damage done.
Depending on the type of data that has been exposed to the public, your company could be subjected to expensive fines for the violation of certain privacy regulations, including the General Data Protection Regulation (GDPR). The fines levied could be per record which has been compromised, per customer, or even as a percentage of your business revenues.
2. Continuity of business operations and high cyber-insurance fees
It’s often difficult to maintain the continuity of your business operations once your systems and data have been compromised. Without certain key information, your company processes are no longer optimal. The cyber insurance premiums of your business are bound to increase substantially following a claim.
3. Loss of customer trust and loyalty
Customers are the heart and soul of your business, as are your employees. Ransomware attacks could cause you a loss of your key customers which will severely impact your business revenues. Loss of employee confidence, downtime, and long recovery times are also costs associated with such cyber-attacks.
4. High public relations and marketing costs
The costs of a ransomware attack bleed into every department of a company. There are high costs associated with authorizing news releases, business updates, and giving interviews to calm the nerves of your clients and the public at large, once your systems have been compromised.
5. Hiring a qualified risk evaluator
Once a system breach occurs, it is imperative to hire a competent and qualified professional risk evaluator and managed IT security services provider to determine the extent of loss your business has suffered and how best to approach the recovery process. This is not cheap.
However, a good Managed Service Provider (MSP) can help reduce the network damage caused by the ransomware attack and advise you in the best way possible. Hiring a reputed MSP is key to ensuring optimum cybersecurity for small businesses.
Contact us today to receive a free consultation and learn some more about what cybersecurity services your business needs.