Cyber extortion – what does it mean for your business?

Cyber extortion is growing at an alarming rate and is a significant threat to your business, no matter its size. ALL organisations need to be aware of the risks and how to mitigate them. James Tilbury, CEO of ILUX, takes a deeper dive into what cyber extortion entails and why it’s crucial for your business to take this threat seriously.

What is Cyber Extortion?

Cyber extortion is a type of cyber crime where attackers hold your business’s digital assets, systems, or data hostage to demand a ransom. The most common form of cyber extortion is ransomware, malicious software that encrypts the victim’s data, rendering it inaccessible until the ransom is paid. However, cyber extortion has evolved beyond just encrypting files.

Double Extortion:

In many cases, cybercriminals now employ a tactic known as double extortion. Not only do they encrypt the data, but they also steal sensitive information and threaten to release it publicly if their demands are not met. This tactic puts additional pressure on you and your business, as the potential for public exposure can have severe legal, financial, and reputational consequences.

The Growing Risk to Businesses

The threat of cyber extortion is on the rise, with a notable increase in the number and sophistication of attacks. As we have already mentioned, the number of victims has soared by 77% in the past year alone. This surge can be attributed to several factors, including the increased digitalisation of businesses, the proliferation of online threats, and the lucrative nature of these crimes for attackers.

Small Businesses:

Small businesses are particularly vulnerable, being four times more likely to be targeted than larger enterprises. This increased risk is due to several factors:

• Limited resources: Smaller companies often have less resources to invest in robust cyber security measures
• Perceived easier targets: Cybercriminals may view small businesses as easier targets, assuming they are less likely to have strong defences in place
• Sector-specific threats: Certain industries are more frequently targeted due to the nature of their operations and the value of their data; Manufacturing: Disruption of operations can cause significant financial loss, Healthcare: Patient data is highly sensitive and valuable, Professional Services: These sectors often handle large amounts of confidential client information
• Geographic targeting: Cybercriminals often focus on regions with strong economic activity and shared languages, making communication easier and increasing the potential payout. For example, the UK has seen a 96% rise in cyber extortion attacks, reflecting its robust economy and global business presence.

How to protect Your business

To protect your business from cyber extortion, it’s crucial to implement proactive cybersecurity measures:

Data Backup: Regularly back up critical data and store it offline or in a secure offsite location. Test your backup restoration process to ensure data can be quickly recovered in case of an attack.

Software Updates: Keep all software and systems up to date to protect against known vulnerabilities that attackers might exploit.

Multi-Factor Authentication (MFA): Use MFA to add an extra layer of security, requiring multiple verification methods before granting access to sensitive systems.

Patch and Vulnerability Management: Regularly apply security patches to close vulnerabilities in your systems. Cyber criminals often target known weaknesses, so timely updates are critical.

Cyber extortion is a growing threat that can have devastating effects on businesses, particularly those that are less prepared. Understanding the nature of these attacks and taking proactive steps to strengthen your cybersecurity posture is essential. By implementing robust data protection strategies, staying vigilant with updates and patches, and limiting access to critical systems, you can reduce the risk of falling victim to cyber extortion.

If your business needs assistance in bolstering its cybersecurity defences, don’t hesitate to reach out for professional support. Being prepared is the best defence against this ever-evolving threat.

James Tilbury
CEO

Email: james.tilbury@ilux.co.uk
Tel: 01480 501500

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