The Financial Consequences of a Cyber Attack

Cybercrimes Are On The Rise

In 2015, the number of ransomware payments specifically made worldwide was $325 million. That number of ransomware payments grew substantially to over $2 billion in 2017. In fact, the financial consequences of a cyber attack are staggering and growing every year. That’s why managed network security solutions services have become so crucial. Whether you are the victim of cyber attacks or some other cybercrimes, there is no doubt that the seedy underbelly of the cyber world can hit you where it hurts most, your wallet.

There Is A Wide Range Of Motivations For Cyber Attacks

The motivation behind these attacks ranges from cybercrime to cyber espionage. Here are the numbers:

  • 84% of cyber attacks are especially related to cybercrime. Cybercrimes, also called computer crimes is any illegal activity (like ransomware and ransomware payments) that involves a computer or network-connected device, (like a cell phone). The department of justice divides cybercrime into three categories: crimes where the computer/device is the target, crimes when the computer is used as a weapon, and crimes when the computer is used as an accessory to a crime.
  • 9% of cyber attacks markedly come from cyber espionage. Cyber espionage can happen when an employee, ex-employee, or competitor gets into your IT systems, whether by login or hacking and steals your intellectual information.
  • 4% of cyber attacks particularly come from Hacktivism. Hacktivism is when a hacker gains unauthorized access to a computer and carries out various disruptive actions to try and achieve a political or social goal. In the past Hacktivists have threatened to bring down the power grid or even the internet. This will have a financial impact on any business left in its wake.
  • 1% of cyber attacks, in general, come from cyber-warfare. While not as common, cyber warfare still has the potential to affect businesses. Cyber warfare is when another country or organization attack IT systems for strategic or military purposes. Utility companies or suppliers to the government and defense industry notably are most at risk for these types of attacks.

Surprisingly, there are a lot more than simple financial consequences of a cyber attack. The U.S. National Cybersecurity Alliance found that when a small business is the target of a Cyber Attack, 60% of them go out of business within 6 months.

Small Businesses and Cybersecurity

  • Even though many businesses report being concerned about cyber attacks (58%) and ransomware payments, more than half of all businesses (51%) are not allocating any budget at all to risk mitigation.
  • When surveyed, the most common reason small businesses don’t allocate budget to risk mitigation was that they felt that they didn’t store any valuable data. With this in mind, a high number of those same businesses reported that they do store customer information, which cybercriminals might find valuable, like email addresses, phone numbers, and billing information.
  • Only 38% of businesses regularly update their software solutions.
  • Surprisingly, only 31% of businesses regularly monitor their business credit reports.
  • Only 22 % of businesses encrypt their databases.

What Can You Do?

There are definitely steps that you can take to minimize or even eliminate the financial consequences of a cyber attack. Contact CIS Today! Since 1989, our primary objective has been to provide support through managed services, business process consulting, and custom programming. Our managed network services range from filling the role of an elite IT department specifically with vCIO capabilities to a proactive and preventative methodology. We provide a fully integrated support system for clients who already employ an active IT department. Such as, air-tight and well tested security solutions that will help keep your business protected and safe. In fact, we embrace being a partner in the true sense of the word and our success is directly tied to that of our clients. Any decision maker or business owner would be well served to learn our unique perspectives on technology costs and results.

Click HERE for a managed services quote.

Published On: October 1, 2018Categories: Cybersecurity, Disaster Recovery, Managed IT Services