Cyberattacks are getting more costly for victims
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Cyber attacks are getting more expensive for victim companies, new figures
Research by Atlas VPN into the destructive potential of viruses (opens in new tab) and malware cyberattacks have found that nearly a quarter (22%) of businesses affected by such an incident have lost anywhere from $100,000 to $499,999.
In addition, 11% lost between $500,000 and $999,999 while 4% lost a million or more. In total, 37% lost $100,000 or more, while a quarter (24%) lost between $50,000 and $99,999.
Transparency issues
The exact financial impact is also relatively difficult to determine, as there are many moving parts to consider. Companies must also consider brand damage, cooperation with partners and customers, and possible fines from regulators.
“While many companies have recently invested more in cybersecurity, the main challenge is transparency,” said Vilius Kardelis, cybersecurity writer at Atlas VPN. “Companies are afraid to report incidents for fear of losing customer trust. However, that makes cyber-attacks more dangerous and more common, causing significant damage to businesses.”
That said, Atlas VPN found that nearly a third (31%) of victims’ businesses experienced disruption to either partner’s or customer’s business, as well as financial information theft. Also, more than a quarter (28%) suffered from a tarnished reputation, while 24% were forced to address disruption in their supply chains.
Nearly a quarter (23%) were forced to tackle barriers to trade and business, while 19% lost business and contracts, and nearly a fifth (18%) lost money directly.
All of these things make companies want to keep potential cyber incidents to themselves and not make them public.
In fact, 48% of IT leaders said they were aware of the cyberattack on their organization, but were silent about it. However, failing to disclose these things makes cyber-attacks even more dangerous and common, and thus more devastating, the researchers conclude.