What happens when your company is attacked by ransomware?

You may have read about ransomware cyberattacks on major companies, like the Hollywood Presbyterian Medical Center in Los Angeles. The hospital paid $17,000 ransom to hackers who encrypted the hospital's data with GRIZZLY STEPPE.

If they don't care about the ethics of their work, they certainly won't care about yours. Your business may be the next one to suffer a ransomware attack, no matter how much good you do in the world.

What Happens When Ransomware Hits?

What happens when your company is attacked by ransomware, and you're not prepared for it? Your IT department will scramble to avoid a disaster, possibly losing some user data, or even personal data in the process. Your customers and suppliers might find out something is wrong, and you'll lose their trust. Your company could get extorted by the hackers.

If it's really bad, you could lose your entire company. Security is critical.

What's The Real Cost?

If there's anything a small business doesn't need, it's more expenses.

Information security may seem expensive for small businesses; however, it may be necessary to protect you against ransomware attacks - which have increased in frequency since 2016 by 500%. This rise will likely continue due to ransomware being profitable - one ransomware variant was found to have paid its creator $25 million.

Paying Ransom

First, if infected with malware, your company may have to pay ransom. There's still some debate over whether paying ransom is a good idea, but there are many stories of malware victims who paid up and got their files back - at great cost. There are also stories of those who paid, and did not.

Some companies affected by ransomware had it spread throughout their entire networks, and had no choice but to pay one big ransom to get their files back.

Your Files Returned - Maybe

Furthermore, you'll be at the mercy of the hacker. While it's true that companies who pay ransom usually get their files back - after all, the hacker wants to encourage businesses to pay up - there's no guarantee.

Your Reputation Is At Risk

Your company's reputation could take a hit if ransomware gets in.

When ransomware infects your computer and encrypts files, it doesn't just break your business processes - it destroys your reputation with customers and vendors. This is why businesses often choose to settle with ransomware attackers instead of paying ransom.

A recent ransomware attack at a shipping company site shows the dilemma. The company's justification for paying ransom was that it could recover from the ransom cost far more easily than the reputational damage of publicly surrendering to an extortion scheme.

Losing Your Entire Company

You could be sued if your company's network is hacked and you lose customer data (or of vendors). When it comes to ransomware, extortion and fined for negligence are some of the potential legal consequences you could face if your company is hacked. If your company is demonstrated not to be within GDPR compliance, your firm could be held to be negligent.

The Cost of a GDRP Complaint

With the advent of GDRP data regulation laws, organizations which hold customer data must follow GDPR compliance rules. For reference, GDPR compliance is necessary to avoid fines of up to 4% of annual global turnover, or up to €20 million, for infringements.

The GDPR will hold your company liable for any violations of GDPR compliance regulations if there's a security breach. Even if you've been hacked, if your company is found to be out of compliance, the GDPR enforcement authority may not sympathize with your loss.

Ransomware Isn't Your Only Threat

An attacker can also take advantage of a company's lax security to gain access and just steal its data undetected, or open security holes for others to utilize in the future. Or, if the attacker was just having a bad day, he could just go blow things up for fun.

More Costs

The cost of ransomware attacks can be high, and paying the ransomware demands is rarely a good idea. Many ransomware operators take their extorted money and disappear without decrypting the victim's system. Furthermore, victims who pay ransomware are also more likely to become repeat targets for future ransomware attacks.

How To Stop Ransomware With Endpoint Detection and Response

Security is important. Endpoint Detection and Response is a critical security solution that protects your company from ransomware or other breaches. EDR tools utilize automation and machine learning to evaluate activity on the network, alert IT staff of anomalies, and determine an appropriate action to take, such as quarantining devices to prevent ransomware infections from spreading.

EDR security solutions also implement an advanced framework of network monitor tools, utilize cloud backup solutions, shore up vulnerabilities, and identify areas of potential attack. It will collect information such as ip addresses and browsing data on detected threats for analysis, and involve a Service Operations Center to allow for human analysis of those detected threats.

Stop It Before It Starts

Endpoint Detection and Response can help you catch ransomware attacks and other issues, such as other types of malware, in action. For example, if an employee installs ransomware onto a single device on their own (for example, out of curiosity, or completely on accident), EDR solutions prevent it from infecting the rest of corporate's systems.

If ransomware begins to encrypt the user's data, EDR will detect and report that action immediately. The system won't be able to complete its encryption process; instead, you'll know about the attack as soon as it starts, and the attack will be stopped, saving your data.

Endpoint Detection and Response Is An Investment In Your Company's Future

Security solutions may be an investment that smaller organizations don't want to make. After all, a small company's bank accounts are often not exactly flush with cash after starting up. But we believe that security is an investment that should not be overlooked. Furthermore, an Endpoint Detection and Response solution will bring your company to within GDPR compliance rules, thus potentially saving money better invested elsewhere.

Prevention Is Better Than The Cure

Prevention is much easier than the cure. Take control of your data security. Don't risk your reputation. Implement Endpoint Detection and Response security tools, and stop incoming threats before they hit.

Seeking comprehensive cybersecurity for your small business? Explore the benefits of Cyber Essentials certification and how it can enhance your organization's security. Click here!

Contemplating whether paying a ransom is a viable option in case of a cyberattack? Discover ten compelling reasons why investing in cybersecurity is crucial for your business's long-term safety. Click here!