The cybercriminals we’re dealing with today have gotten more sophisticated. As a result, business and IT leaders have been forced to reckon with the growing risk of ransomware. This is set to cost the global business community $265 billion over the next 10 years. While there are established cybersecurity risk management policies and techniques that can help alleviate risk, there’s no denying that the evolution of ransomware has made this an urgent concern.
These costs are a conservative estimate. To see why, start by considering what a single ransomware demand can cost you.
You Can’t Afford to Pay a Ransom
The direct cost is astronomical
For most businesses, paying the cost of a ransom is simply not feasible. Before 2020, the average amount paid per event hovered around $500. In 2020, that amount rose to about $300,000. Now, just two years later, the average ransom paid by a business sits at an astonishing $925,162.
While paying this exorbitant sum once may be possible for some businesses, it’s not a suitable long-term strategy. In addition, multiple attacks on the same company are now becoming more common. According to one worldwide survey, 80% of organizations that paid a ransom were subject to at least one subsequent attack.
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Ransomware Attacks Bring Secondary Costs, Too
Estimating the cost of ransomware for a small business is about more than just the ransom. Unfortunately, being hit with a ransomware attack typically causes a cascade of negative consequences that can be extremely costly.
Ransomware is designed to cause damaging downtime
Ransomware is designed to hold your files and data hostage, preventing them from being used by your employees. If you don’t have a backup plan in place that can be activated immediately, your assets and information will be inaccessible, forcing your business to grind to a halt until the ransom is paid.
The collective cost of this downtime in the United States alone is estimated at $159.4 billion per year.
Even small incidents disrupt productivity
Even if your downtime was minimal during a ransomware incident, getting back on track can still be challenging for your employees. Switching to your backup system takes time, and this adjustment can throw a wrench into your employees’ productivity.
Ransomware jeopardizes customer loyalty and trust
One of the most valuable assets seized during a ransomware incident is sensitive personal information. Businesses responsible for holding this information may be required by law to inform affected individuals in the event of a breach.
Receiving a notification that a trusted business was responsible for the loss of your personal information is frustrating and can irrevocably damage loyalty and trust moving forward.
Neglecting compliance can be costly
If your organization is subject to compliance laws, regulations or other standards, being hit with a ransomware attack can put you in danger of legal repercussions. This may include lawsuits or other legal challenges.
These legal consequences can be costly to both your budget and your reputation as a reliable and trusted organization.
Your cyber insurance premium rises
Following a ransomware incident or data breach, it’s normal for your cyber insurance premiums to increase. That’s of course assuming you have and can keep your cyber insurance policy.
Don’t Pay for a Ransomware Attack on Your Own, Get Cyber Insurance
Too many organizations go without a cyber insurance policy.
Unfortunately, this puts you in the situation of having to cover the costs of a ransomware incident alone if it happens again.
Instead of avoiding cyber insurance, focus on implementing basic safety precautions that can both protect you from cybercriminals and help you secure a cyber insurance policy.
Here’s what you must do if you want coverage:
- Employ multi-factor authentication
- Implement a strong password policy
- Conduct regular phishing tests
- Backup your data
- Protect endpoints
- Install a next-generation firewall
- Regularly patch and manage software
Get Help from the Best Cybersecurity Provider in Nashville
Running a business has never been more challenging. Protecting your data and proprietary information is a huge responsibility and one that’s become increasingly difficult to achieve.
Tech Squared can help.
We will implement and manage cybersecurity policies for you that can help protect your business from ransomware.
Our cybersecurity experts have worked tirelessly to help businesses in the Nashville area circumvent malware, keeping them productive and focused on growth.
Want to learn more about how we can help? Book a conversation with Nashville’s best cybersecurity team today.
