Cost of Ransomware Breach
Ransomware is a form of malware or virus that encrypts a victim’s files. The attacker then demands a ransom from the victim to restore access to the data upon payment. More information on ransomware attacks can be found in one of our previously published blog’s “Ransomware Attacks”.
As we know ransomware attacks are on the rise and the ransom itself is not the only cost to the business. The consequences of a breach are endless, ranging from loss of revenue due to downtime, to reputational damage.
There are four factors that make up the cost of a breach:
Detection and Escalation
These are activities that enable organisations to identify when a breach has occurred. It covers processes such as forensic and investigation activities, assessments and audit services, crisis management and communications to executives and boards.
These are activities that attempt to minimise the loss of customers, business disruption and revenue losses. It can include disruption caused by system downtime, the costs associated with customer churn and reputational loss.
Organisations must notify data subjects, regulators and third parties of the data breach and will typically email or telephone those affected, assess whether the incident needs to be reported to their regulator (and contract them where relevant) and consult with outside experts during this process.
These are the costs associated with compensating affected data subjects, and the legal ramifications of the incident. Depending on where the data subject is resident, local laws may dictate that you must include credit monitoring services for victims, legal expenses, product discounts and regulatory fines.
There are multiple defense features that can be implemented by a company to protect themselves against ransomware attacks, get in touch with us today to discuss how we can help!
We also offer a free cyber rating on our website that predicts your susceptibility to a ransomware attack.