Cyber Extortion: Understanding the Risk to Your Business

Cyber extortion is increasingly making headlines and causing significant concern for businesses across all industries. If it still needs to be added to your radar, it should be. Cyber extortion could pose a severe threat to your business at any time.

What is Cyber Extortion?

Cyber extortion is a cybercrime where criminals threaten to harm your business by compromising its digital assets or data unless a ransom is paid. Often, this involves using ransomware, malicious software that encrypts your data, rendering it inaccessible until the ransom is paid. In some cases, attackers take it a step further by stealing data and threatening to release it on dark web leak sites if their demands aren’t met—a tactic known as double extortion.

A 2024 report highlighted a concerning rise in cyber extortion, with the number of victims soaring by 77% over the past year. Small businesses are particularly vulnerable, four times more likely to be targeted than larger enterprises. This is alarming, given that smaller companies often have fewer resources to defend against such attacks.

During the first quarter of this year alone, 1,046 businesses fell victim to double extortion. While this figure might seem modest, the actual number is likely much higher, as many incidents go unreported, contributing to what experts call the “dark number.”

Who is at Risk?

While any business can be a target, specific sectors are more frequently attacked. Industries like manufacturing, professional, scientific, technical services, and wholesale trade are at the top. Alarmingly, the healthcare and social assistance sectors also see increased attacks despite the potential societal and political consequences.

Cybercriminals are opportunistic, often targeting regions with strong economic growth. For example, the United States has seen a staggering 108% increase in cyber extortion attacks.

Protecting Your Business

The growing threat of cyber extortion is alarming, but you can take preventative measures to safeguard your business:

1. Backup Your Data: Ensure a robust backup plan with critical data stored offline or offsite. Regularly test your backup restoration process.
2. Keep software Updated: Regularly update all software, especially on devices connected to the internet, to patch vulnerabilities that cyber criminals could exploit.
3. Implement Multi-Factor Authentication (MFA): Strengthen access controls by requiring multiple verification forms before granting access. Limit user access to only the systems necessary for their job.
4. Patch and Vulnerability Management: Stay on top of system updates to fix security weaknesses, preventing many attacks before they can occur.

Understanding cyber extortion and its risks can help you better prepare and defend your business. Proactive measures are vital to safeguarding your business from these ever-evolving threats.

If you need assistance protecting your business, don’t hesitate to get in touch.