More than 4.1 billion records were compromised in just the first half of 2019. It is estimated that 28% of small firms annually experience data breaches, with as many as 10% of those enterprises closing permanently as a result.

Understanding the potential cost of a data breach is crucial for firms as they decide what Cybersecurity measures they need to take to defend themselves from Ransomware and other cyberattacks, and the cost of a data breach may have a significant impact on enterprises of any size.

Financial Cost of Cybersecurity Breaches

Companies often worry first and foremost about the monetary expenses associated with a cybersecurity breach, and the prices of certain forms of attacks, such as ransomware, have soared in recent years. For small businesses, the average cost of a ransomware assault is $84,000, according to security firm OSIbeyond. Even more, expenses may be incurred by larger or more severely attacked businesses. As you strive to restore your data and regain your clients' trust, you may incur both immediate and ongoing financial costs.

Thousands upon thousands of discussions are always taking place inside cybercrime communities about individual instances (Cybersecurity Ventures estimates that globally a ransomware attack occurs every 11 seconds). Small- and medium-sized-business owners rarely hear about these topics in the news or on their information dashboards. The Colonial Pipeline ransomware attack, for example, was a major cybersecurity breach that made the news. If you live in the southeast of the United States, how prepared were you? Many people panicked, and the resulting energy shortages may have hit your company or household hard, depending on where you live.

What would you do if you were a trade contractor and one of your most important suppliers was attacked? Since cyberattacks might be directed at your company directly or come through a third party such as a supplier, a client, or even a bank, it's nearly hard to be ready for them all. The internet has created a globally interconnected economy, but it has also made hackers adept at targeting companies of all sizes.

The Dangers of a Ransomware Attack

Your customer's technology link, your own email system, and your vendor's technology connection are the three primary entry routes via which ransomware can disrupt your business operations. To launch a ransomware assault, all a hacker needs to do is gain access to one of your customer's computers, and if you use web servers for your e-commerce or VPN, they have a direct route in. Second, brute force assaults using the Remote Desktop Protocol (RDP) or spam emails containing malicious Word or Excel files are another common entry point for ransomware. Third, businesses in your supply chain can be vulnerable to ransomware attacks and, as a result, abruptly stop supplying you or being able to settle up with you in a timely manner.

In many cases, ransomware does more damage than only encrypting your files and holding you to their ransom. Typically, ransomware will extract the data, store it on pirate cloud servers, enrich it with information obtained from other sources (both legal and illegal), and then sell it to criminal organizations that place bids on individual data blocks. You could worry that a seller is storing and perhaps selling your payment and banking information to third parties. Imagine all the private information you collect from consumers being exposed on the internet.

It used to be thought that keeping up with security patches and new versions of anti-virus software, as well as installing them on a regular basis, would be enough to keep your organization safe from ransomware and other online dangers. But in December 2020, while everyone's attention was elsewhere, we discovered a new vector for infection supplied by untrusted third parties. A highly sophisticated cyber breach was uncovered, and specialists determined that it was enabled by using commercial system management software. The installation of SolarWinds, a solution designed to guard and manage against disruptions to technological services, actually opened the door for disruptions to be caused by threat actors, who introduced a backdoor into the application during vendor development.

Ransomware and other forms of cyberattack pose an ongoing, serious threat to the functioning of our economic, monetary, and governmental institutions. To what extent can a small or medium-sized business owner reduce uncertainty?

1. Protect Your Points of Entry

Website security and intrusion, email, user clicks, and malware (by any means, including insider threat) all constitute a danger. Do your best to ensure that your IT staff, whether they are in-house or outsourced, takes safety seriously. Active and continuing training on data security best practices, including frequent password changes, awareness of spam and hacker activities, verifying the sender's email address, and not opening attachments from unknown senders, should be provided to staff.

2. Discuss Cyberthreats with Vendors

Protecting your business interests may require you to have tough conversations with vendors and other business associates. Inquire into the vendors' data protection measures and contingency plans in the case of a cyberattack. In case your main suppliers suddenly stop functioning, you should also have a plan B ready.

3. Publicly Discuss Cybersecurity

Your company undoubtedly has safety policies in place, but it is vital that you teach your staff how to spot spam, hacking, and ransomware. Get involved with the political process at the state, federal, and even international levels to influence cybersecurity policy. If you have been the victim of a cyberattack, your cyber insurance provider will almost certainly require you to report the incident to the FBI.

To Protect Your Business, Be Prepared

While our digital networks bring us closer together, they also leave us open to attack from anywhere in the world. Cybercrime is a real threat, and businesses should take the same precautions they would to protect themselves from natural disasters or other unforeseen events.