Cyber Advisors Business Blog

Hidden costs of Ransomware

Written by Matt Kanaskie | Dec 12, 2023 6:33:18 PM

When we think of ransomware attacks, immediate costs like ransom payments often come to mind. But what about the expenses lurking beneath the surface? Let's uncover the often-overlooked repercussions of ransomware attacks.

The hidden costs:

Operational Downtime: Post a ransomware attack, system downtime is inevitable. Whether it's a few hours or several weeks, this can lead to a significant loss of revenue, especially for businesses that heavily rely on online operations.

Damage to Brand Reputation: Word spreads fast! Once customers learn about a security breach, trust is eroded. Winning back consumer confidence can be an uphill battle, not to mention the potential loss of loyal clientele. 

Increased IT Expenditure: Recovering from an attack isn't cheap. Think of costs associated with system repairs, data recovery, and strengthening cybersecurity measures. Also, hiring external experts for damage control can be a pricey affair.

Legal Liabilities: If sensitive customer data is compromised, legal battles may ensue. Regulatory fines, especially under laws like GDPR, can be substantial.