With each passing year, the ransomware landscape expands and becomes increasingly more complicated. In fact, according to the International Data Corporation (IDC)’s 2021 Ransomware Study, approximately 37% of organisations globally have stated that they have fallen victim to some form of ransomware attack in 2021. Concerningly, between July 2019 and December 2021, there was a 65 per cent rise in detected global losses from ransomware attacks.
Businesses all over the world are under more pressure to safeguard their data and network as the quantity and complexity of ransomware attacks continue to rise. In this article, we go over 3 ways ransomware attacks can affect your business.
What are ransomware attacks?
Before we explore the effects of ransomware attacks, it is crucial to understand what this term means.
Simply put, a ransomware attack includes encrypting the victim’s files and keeping them hostage until they pay the attacker a ransom. A network or device can become infected with ransomware, swiftly harming your entire company. It may attack practically any form of file, including databases, apps, and documents. In many cases, it attacks the entire system, taking down entire businesses.
There is a common misconception that ransomware and malware attacks are the same. However, that is not the case. Malware is the general umbrella term used to describe all types of programmes designed to damage a device. Ransomware is a type of malware.
Downtime occurs when an organisation’s productivity is below average or there is a significant disruption to business operations. Ransomware attacks may hamper the operations and productivity of even large, well-established corporations. Statistics reveal that the average downtime a business experiences from a ransomware attack is between 1 to 3 weeks. Apart from the fact that extended downtime can reduce a business’s productivity significantly, it is also incredibly costly. Recovery from a ransomware attack typically costs ten times as much as the ransom itself.
2. Reputational damage
A breach of data security, interruptions to business, and loss of consumer data will reflect negatively on your organisation. A ransomware attack may have a huge impact on how your consumers see your company and their level of trust in you.
As a result of the attack, your current customers’ private information and data may have leaked, making it difficult to not only keep your current clients and customers, but also deters others from working with your company or collaborating with you in the future.
3. Financial impact
Although regulatory bodies across the world discourage businesses from paying the ransom, many companies still do so because they have no other choice, as you could risk losing thousands of dollars.
Depending on the ransomware attack’s style, the volume of data it encrypts, and the kind of business you run, the cost of the ransom might vary. A large organisation may have to pay millions in ransom payments, whilst a small firm with minimal data may just have to pay a few thousand dollars to get its data returned. However, no matter the amount, it is undeniable that the financial impact a ransomware attack has on a business is significant.
In the world of IT and business, ransomware is swiftly rising to the top of the list of severe worries. A ransomware attack can have significant effects on a company, its partners, clients, and other stakeholders.
Thus, it is imperative to place emphasis on an organisation’s cyber security strategy. TYPENT is the company to choose if you’re looking to outsource IT services in Singapore. Offering products and services like Singapore firewall services, Fortinet Fortigate, server virtualisation, email security solutions in Singapore, and more, we have been providing impeccable IT solutions for various businesses for the past decade.
Protect your company’s data and network from ransomware attacks with TYPENT today. Contact us here for more information.