According to research, about ¼ of small to medium sized business owners aren’t aware that cyberattacks could cost them money when, in fact, successful ransomware attacks can be very harmful for your company financially. Ransomware can be defined as any type of malicious software designed to block access to a computer system or otherwise threaten a company with harm unless a certain amount of money is paid to the creator of the malware.
Not only can they cost your business absurd amounts of money, but attacks like these also have the potential to damage your business’ reputation and privacy. Not to mention the money that would need to be spent on investigating the attack and fixing the problems created by it. Chances are, your business will be the subject of an attempted ransomware attack at some point during your operation, so it is best to be informed and prepared in order to prevent harm.
Operational Harm Caused By Ransomware
Businesses could experience an extreme drop in productivity levels following a ransomware attack, costing the company even more money than the payment amount required by the criminal who initiated the attack. Company operations could be delayed and employee accounts and devices could be compromised, causing shutdowns or outages. Ransomware attacks most always take a long time to detect and contain; it’s just the nature of it. All of that time that computer systems are not available to use is time that productivity, sales, Accounts Payable/Accounts Receivable processes can all be ground to a halt. To some, this may not sound that alarming, but companies who have fallen victim to serious ransomware attacks could suffer heavily from the financial losses that arise from the interruption of daily business.
The average ransomware attack has a lifecycle of almost a year, a timeframe within which a company could experience severe operational impacts. Plus, the average cost of the ransom demands in ransomware attacks has risen dramatically in the last several years. Cybercriminals often do their research before engaging with a business and demand a ransom they know could be met, even if barely, by the victim.
Reputational Harm Caused By Ransomware
As we all know, business owners spend a great deal of time, money, and effort in growing and developing their business. A good brand reputation is one of the most important things to have when it comes to being successful in the business world. An attack that compromises the security of the company could gravely affect both customer and vendor confidence in that company. No one wants to work with a company that they feel may be putting their own information and data at risk. Most people understand the impacts of identity and data theft and will avoid anything that would put them at risk of an attack, including a breached company that brand-loyal customers may have loved before.
All of the hard work a business owner has put into the reputation of their company could be undone, and then some, in a matter of minutes. Other businesses will be more hesitant to work with companies who have fallen victim to a cyberattack. Many companies will even require that their partners follow a certain level of security guidelines so that their own risk is decreased.
Types of Attacks And Precautions to Take
Ransomware can come in many forms, and within the time that you take to read this article, many more will already be in the works. The known types of ransomware attacks include screen lockers and scareware. In these attacks, a user could be locked out of a device by software that is pretending to be a law enforcement officer or other authority figure, and a ransom demand will be offered in order to get the system back. There are also types where a pop-up may appear on the user’s screen demanding a sum of money to stop a virus from being installed on the computer. It may be disguised as being from some other seemingly credible company, particularly security companies. Most times, in any sort of attack, the information that is held hostage by the attacker isn’t even returned after the payment is given.
It is extremely important to take the necessary safety and security precautions to protect your business from cyberattacks like ransomware, but if you do fall victim, remember to never pay the ransom amount, immediately contact ransomware remediation professionals, and contact a lawyer and law enforcement. To prevent attacks like these from happening in the first place, make sure to always back up company information regularly, save files in cloud-based programs instead of only saving locally, and install anti-virus/anti-malware software and do any necessary upkeep for the program.
Blue Oak can help you with all of this. We can offer expert advice on how to keep your company safe, and offer support in times where an attack may be successful. Contact us today to see how you can improve the security of your business!
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