Ransomware is a type of virus that encrypts data on a target system, rendering them unavailable to the original users until a ransom is paid. Ransomware assaults have become the most convenient approach for malicious threat actors to make quick cash. Since DoD contractors are small business owners, they are often low at resources and funds to safeguard their data from cybercriminals.
They typically scare their victims with the potential of being blocked out of their files for good or, worse, having their data published online – a scenario that may result in significant reputational damage and trust for a firm.
Ransomware attacks may be disastrous for enterprises, resulting in critical data loss and operational disruption. In several cases, organizations have had to pay enormous quantities of money to ransomware attackers, generally in bitcoin, to recover access to their data.
Furthermore, ransomware may swiftly spread throughout an organization, infecting many gadgets. As a result, organizations must be aware of the risks of ransomware assaults and take steps to secure data even before an assault occurs.
When determining how prepared your company is for a cyberattack, downloading Cyber Management Alliance’s 9-point Ransomware Readiness Questionnaire is a great place to start. A thorough Ransomware Readiness Assessment, on the other hand, is the best option for firms that wish to limit the harm that a ransomware assault may inflict substantially.
What Will a Cyberattack Mean for Your Company?
Although we briefly addressed this subject before, here’s a closer look at the potential harm a ransomware assault might bring even to a small-to-medium-sized firm.
1. Commercial Loss: If the ransomware encrypts your key business files (which it almost certainly will), your company may have to close down for days or weeks while you struggle to restore your data. The Colonial Pipeline had a similar fate. Due to the ransomware assault, the corporation preemptively shut down its operations, causing gas shortages on the East Coast of the United States.
In most circumstances, a ransomware assault will result in lost income and client confidence.
2. Ransom Payment: As a business, you’ll have to make one of the most difficult decisions: whether or not to pay the hacker. While regulatory bodies worldwide prohibit organizations from paying the ransom, many DoD companies choose to do so because they have no other choice.
If you are attacked, you might lose big bucks in ransom, with no assurance that the attackers will decrypt your data.
The cost of a ransomware assault varies according to the sort of attack, the volume of data encoded, and the type of business. A small firm with minimal data, for example, may just have to pay a few hundred dollars to have its data returned. Still, a significant organization may have to spend millions in ransom money.
3. Reputational Damage: If word of the attack spreads, which it almost certainly will, your company’s reputation might suffer significantly. As a result of the assault, your existing customers’ data and sensitive information may leak, making it harder to retain present clients and customers and discouraging others from doing business or cooperating with your organization in the future.
4. Regulatory Penalties: If sensitive consumer data is compromised due to the assault, you may face regulatory penalties, adding additional stress to an already dire position.