The modern ransomware attacks vastly differ from malware attacks in the past. Threat actors are more sophisticated in their techniques as businesses embrace the internet and its associated technologies. As a result, it’s more challenging for businesses to detect, prevent, or recover from these malicious activities. The cost of downtime due to ransomware attacks comes in different forms—loss of time and productivity, compromised data, erosion of brand reputation, and customer trust.
Ransomware Stats
Cybersecurity Ventures estimated business enterprises fell victim to ransomware attacks every 11 seconds in 2021. Most people think their businesses are too small or not big enough to attract threat actors. On the contrary, no business is immune to ransomware attacks. The size of a business doesn’t matter to these attackers; they also target the most vulnerable companies with little to no cybersecurity measures in place.
More businesses have become victims of ransomware as the attacks increase. In 2017, there were about 184 million ransomware attacks globally. The number grew in 2018 to 187.9 million attacks, and by 715% in 2020. Since then, half of the businesses worldwide have been hit by ransomware attacks every year. In addition, these attacks are 2.5 times more damaging than any other form of cybercrime.
The Cost of Ransomware Attacks
Calculating the actual cost of ransomware requires the consideration of several variables. Therefore, the cost may vary depending on a business or an industry. The most direct and obvious cost of ransomware attacks is ransom payment. On average, the cost is estimated at $300,000 payouts from small to large business enterprises. However, a significant number of ransomware attacks go unreported, meaning the cost could be higher. While governments and security experts discourage businesses from paying ransomware, 68% of companies end up paying to avoid the effects of business disruptions and downtime.
The cost of business disruption and downtime is far greater than ransom demands. Currently, the cost is estimated at 50 times more than ransomware demand, meaning, on average, disruptions and downtimes cost a business $1.5 million. The cost of downtimes in 2021 was $20 billion worldwide, with the figure expected to hit $265 billion by 2031. An example of a business that faced the adverse effects of downtimes resulting from ransomware attacks is Travelex in 2020. The victim of the ransomware attack experienced several months of interrupted service, resulting in huge losses that forced it to file for bankruptcy.
The cost of ransomware doesn’t end at business interruptions and downtimes. Companies also face the cost of forensics and recovery, data loss, legal proceedings, losing customers, infrastructure before and after the ransomware attack incident and the erosion of public image.
Ransomware has become a major global concern for businesses. No one is safe from the effects of these malicious attackers. Even large corporations believed to have the most advanced cybersecurity systems have fallen victim to ransomware attacks. You can never be fully confident that your business is free from the threat of ransomware. Therefore, invest in technical defenses, policies, and procedures to eliminate or minimize vulnerabilities in your systems and networks.
Secure Your Business From Ransomware Attacks
Infinity Technologies is a security and technology integrator with practical solutions for your company’s cybersecurity needs. We serve a wide range of sectors, including healthcare, retail, manufacturing, corporate, and local government.
We have worked with some of the most renowned and respected brands, including Office 365, Zoom, Mitel, Leviton, Belden, Dell, and others.
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