However, the act of paying the ransom would put the business in question on the criminals’ payers list. Less affected but still at risk industries include healthcare (12.13%), technology (8.89%), and finance (6.89%).Īny business that relies on emails or open data storage systems or communication is susceptible to cyber extortion.Īdditionally, the more expensive the website’s downtime, the more likely a business is to pay the ransom to cybercriminals.
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According to the Arete Incident Response, the most popular industries among cybercriminals in 2020 have been professional services like lawyers, accountants, real estate agents, etc. Is Your Business Vulnerable to Cyber Extortion?Ĭyber extortion affects every industry, size of business, and country indiscriminately. According to Reuters, this trend of giving in to the attackers’ demands has become so prevalent that companies may suffer legal ramifications for doing so. The high cost of recovery makes it tempting for businesses to give in to cybercriminals, making them an even more attractive target in the future. Compared to 2020 ($761,106), the average cost of recovery from ransomware attacks increased in 2021 ($1.8 million), according to Sophos’ State of Ransomware 2021 Report. Is the Current Approach to Business Insurance a Match for Today’s Modern Risks?Īdditionally, simply paying the ransom, which averages around $170,404 per attack, is significantly cheaper than the recovery costs. As few as 199 deposit addresses received 80% of all ransomware attack funds. A 2021 Global Market Report estimated that cybercrimes will cost businesses as much as $600 billion.Ĭybercrime is lucrative and highly organized. In 2020, the total amount of ransom paid by cybercrime victims reached nearly $350 million, a 311% increase compared to 2019. As more and more people shifted to working from home and companies transferred the bulk of their everyday workload online, security risks increased.
The Cost of Cyber Extortion and Associated Risksĭuring the course of the COVID-19 pandemic, businesses have become more vulnerable than ever to cyber attacks. Cybercriminals also commonly threaten to publish sensitive or confidential data which could lead to lawsuits. Cybercriminals often threaten businesses with DDoS attacks, claiming that the attack will occur if a fee isn’t paid to stop it. Depending on the target business, this website downtime can cause significant financial losses.ĭDoS attacks and ransomware are often used in tandem. The goal is to cause a denial of service, making the target’s network temporarily unusable. In the case of DDoS attacks, multiple compromised computer systems attack a single target. The blackmailers then contact the victim, offering to decrypt their files for a fee.
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The software then proceeds to encrypt the victim’s files rendering their computers and networks unusable. Cybercriminals use these emails and websites to trick their recipients and visitors into clicking on infected links, thus downloading the malicious software. Ransomware is a type of malware or “malicious software.” Malware is typically distributed via emails, infected websites, or fraudulent networks. The two most common types of cyber extortion are ransomware and DDoS (Distributed Denial of Service) attacks. Cyber extortion occurs when cybercriminals threaten to disable the operations of a target business or compromise its confidential data unless they receive a payment. What Is Cyber Extortion?Ĭyber extortion is an umbrella term for a wide array of cybercrimes. To better understand this specific threat, let’s talk about what cyber extortion is, how it could affect your business, and relay the most effective methods of protection. Obviously, business leaders need to be aware of the rising threat of ransomware and prepare accordingly. However, in recent years, cybercriminals have started employing sophisticated and aggressive methods that have severely impacted hundreds of businesses across the globe. Department of Justice announced that it intends to elevate investigations of ransomware attacks to a similar priority as terrorism.Ĭyber extortion as a phenomenon has been recognized since 2013 and was considered a relatively mild threat, similar to other uncoordinated malware attacks. The episode briefly left half of the east coast without fuel, including gasoline, diesel, home heating oil, jet fuel, and military supplies.Īs a result, the U.S. On June 3, 2021, a ransomware attack caused the Colonial Pipeline, one of the most extensive fuel pipeline operations in the U.S., to close.
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