Cyber extortion is a growing concern that’s been dominating the news cycle and causing widespread anxiety. It’s a critical issue that should be on your radar, as it could potentially impact your business.
Cyber Extortion Defined
Cyber extortion occurs when hackers threaten to damage your business by attacking its digital assets and data unless a ransom is paid. These threats often involve ransomware, which is malicious software that encrypts your data and holds it hostage until the ransom is paid.
In some cases, cybercriminals escalate their threats by stealing data and threatening to release it on dark web leak sites, a tactic known as double extortion.
The Alarming Statistics
A recent 2024 report indicates a 77% surge in cyber extortion victims over the last year. Small businesses are particularly vulnerable, being four times more likely to be targeted than larger enterprises. This trend is concerning, given that smaller businesses typically have less robust defenses.
In just the first quarter of this year, 1,046 businesses reported falling victim to double extortion. However, the actual number is likely much higher due to underreporting, contributing to what experts refer to as the “dark number.”
Who’s at Risk?
No business is immune; all sectors and sizes are potential targets. Yet, certain industries face more frequent attacks, including manufacturing, professional, scientific, technical services, and wholesale trade. Notably, the healthcare and social assistance sectors are also experiencing a rise in attacks, despite the grave societal and political consequences.
Cybercriminals are both opportunistic and strategic, often targeting regions with robust economic growth and common languages. For example, data breaches were 50% more common in Australia than the global average. 94,000 reports of cybercrime were submitted. The cost of cybercrime to businesses increased by 14% compared to the previous year, with small businesses experiencing an average of $46,000, medium businesses $97,200 and large businesses $71,600.
Protective Measures for Your Business
Despite the worrying trends, there are proactive measures you can take to safeguard your business:
- Data Backups: Implement a solid backup strategy. Store critical data offline or offsite and routinely test your backup restoration process.
- Software Updates: Ensure all devices are running the latest software, particularly those with internet connectivity.
- Multi-Factor Authentication (MFA): Enhance access controls with MFA, requiring multiple verification forms before granting access, and restrict user access to essential systems only.
- Patch Management: Stay vigilant with system updates to address security vulnerabilities, preventing exploitation by cybercriminals.
Understanding cyber extortion and its mechanisms is the first step in preparing your business to counteract these threats. Being proactive is key.
For assistance in fortifying your business against cyber extortion, feel free to reach out. We’re here to help ensure your business remains secure.