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BizReport : Internet : June 17, 2021

Study: Ransomware costs higher than dollar amounts

The true cost of ransomware to businesses isn't just about the amount paid to 'release' their files and information back to them. According to one new report, brands dealing with this type of cybercrime can expect a loss of talent, damage to their reputation, and potentially even high ransoms moving forward.

by Kristina Knight

"Ransomware attacks are a major concern for organizations across the globe, often causing massive business disruptions including the loss of income and valuable human resources as a direct result. In the case of the recent Colonial Pipeline ransomware attack, disruptions were felt up and down the East Coast of the United States and negatively impacted other businesses who are dependent on Colonial's operations," said Chief Executive Officer and Co-founder of Cybereason, Lior Div.

Cybercriminals are getting more and more brazen in their attacks, going not only after consumer data but business information and in some cases holding businesses files for ransom - only to demand higher and higher payments as the business tries to extricate itself from the clutches of the criminals. Those are key insights from new Cybereason data which found that nearly one-fifth of businesses that have reported a ransomeware attack where then forced out of business because of the costs associated with the attack.

• 53% of businesses surveyed said their brand suffered reputation damage as a result of ransomware
• 32% note a loss of C-level talent
• 66% report 'significant' loss of revenue post-attack

"Paying a ransom demand does not guarantee a successful recovery, does not prevent the attackers from hitting the victim organization again, and in the end only exacerbates the problem by encouraging more attacks. Getting in front of the threat by adopting a prevention-first strategy for early detection will allow organizations to stop disruptive ransomware before they can hurt the business," said Div.

About one-third of ransomware victims say they paid between $350,000 and $1,400,000 to get their data back; 7% paid more than $1,400,000.

Tags: cybercrime and small business, cybercrime tips, cybercrime trends, Cybereason, ransomware trends, SMB cybercrime, SMB ransomware

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