Cybercriminals use malicious software known as ransomware to force organizations and companies to pay extortionate amounts of money. Even though ransomware attacks can have exorbitant financial costs, the effect of a successful attack can be expensive in terms of time, resources, and reputation.
This blog article will go over six horrifying costs linked to ransomware attacks.
Exorbitant Payouts: Small and medium-sized companies (SMBs) are especially susceptible to ransomware attacks. When they are attacked, SMBs typically pay out $111,605 in ransom demands, which is about four times more than the typical expense for larger companies.
Your Credibility: The reputation of your business could suffer significantly from a successful ransomware assault. If customers believe that you are not protecting their info, they might lose faith in you. Clients may decide to do business with another company if they no longer have confidence in your company’s ability to secure their information, even if you pay the ransom demand and get access to your data.
Customer Loss: As was already stated, a successful ransomware attack can result in customer loss, meaning that even after recovering from the attack and paying any associated costs, organizations may still experience financial difficulties as a result of lost clients and sources of income.
Business Downtime & Lost Revenue: Companies impacted by ransomware frequently find it challenging to operate at full capacity while their systems are down or infected with malware. As customers lose interest because they can’t access services or goods fast enough, this downtime can result in missed business opportunities. In addition, businesses hit by a ransomware attack might have to pay extra for cleaning up infected systems and making sure all data has been completely recovered before normal business operations can resume.
Rising Insurance Costs: According to Office Tech Insider, the likelihood that your company will experience another ransomware assault is 80% higher if it has already experienced one. This means that insurance companies charge significantly higher premiums than those who have never been attacked because they regard organizations with past ransomware experience as being at high risk for future attacks.
Inability to Qualify for a Loan: Small businesses in need of loans or mortgages are especially susceptible; if they were attacked by ransomware, their financial stability might be seriously jeopardized, which could harm their chances of obtaining the necessary funding. Any disruption caused by this is extremely severe, putting small company owners at risk, as banks base loan provisions decisions on the information gathered from companies.
Ransomware attacks are one of the most worrisome cyber threats currently because they not only have catastrophic financial costs but also have long-lasting effects on an organization’s image and ability to function effectively. Ensure your company has reliable backup and disaster recovery solutions in place to safeguard yourself from these horrifying costs and avoid becoming another target of this malicious software.
function ostensibly without required oversight raises serious safety concerns. We trust our technology too much without completely understanding it, which is a common ethical concern.
NUMENTIS is a Canadian-owned Managed Services provider that offers Managed IT, Cybersecurity Solutions, Cloud Services and VoIP to help their customers control costs, secure their data and make their people more productive. Our Managed Data Protection (SaaS Protect) for Microsoft 365 reduces the risk of Exchange Online and/or OneDrive data loss. In addition, our Managed Threat Protection (SaaS Defense) for Microsoft 365 to proactively defend against malware, business email compromise (BEC), and phishing attacks that target Microsoft Exchange, OneDrive, SharePoint, and Teams.