What’s the Real Cost of a Ransomware Attack?
With Cybersecurity Awareness Month in full swing, new annual reports are putting the rise in ransomware and other cyber attacks into perspective – and the results are staggering. According to our friends at Datto, MSPs around the world are reporting that downtime costs are nearly 50X greater than the cost of the ransom itself. In fact, the cost of downtime has risen 486% since 2018. Let’s get into how much a ransomware attack will actually cost on average.
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What is the average ransom in a ransomware attack?
While the total ransom for every attack varies depending on the attacker, the business, and the victim’s industry, the average ransom cost was $5,600 in 2020 – a surprising $300 decline as compared to the previous year.
So, what does a ransomware attack really cost – downtime included?
While that $5,600 may not seem so bad for successful businesses, the average cost of downtime in 2020 spiked to $274,200. That’s nearly double 2019’s average cost of $141,000. While the core causes of this are unclear, it’s likely due to a combination of higher downtime costs associated with organizational changes and MSPs improving the way that downtime costs are calculated.
Why are ransomware attack downtime costs on the rise?
While Datto didn’t dig into specific details, the massive technological shifts that many companies were thrust into at the beginning of 2020 opened up a lot of doors for hackers searching for vulnerabilities. As employees began working remotely, less-protected networks and BYOD (Bring Your Own Device) came together to break down many of the security barriers that were in place. 54 percent of MSPs also report that phishing attacks remain the top successful route for attackers, meaning that many employees continue to take the bait (even with training in place).
As the best managed IT services provider in Charlotte, SeedSpark is proud to work with small- and medium-sized businesses to deliver secure technology solutions that protect their network today and prepare their team for tomorrow, leveraging the power of AI and hands-on training to combat today’s top cybersecurity threats. Contact our team today for a free 30-minute cybersecurity assessment, digging into the technology that you already have to identify opportunities for improvement that keep your team secured and connected 24/7.