[BreachExchange] When Business Computers Are Held For Ransom, Downtime Is Biggest Cost

[Inga Goddijn]

http://www.cpapracticeadvisor.com/news/12184515/when-business-computers-are-held-for-ransom-downtime-is-biggest-cost

Cases of ransomeware are on the rise in businesses of all sizes, according
to a new study. And the biggest cost often isn't the ransom, but the cost
of downtime and lost revenue while the business tries to work around the
hijacked and blocked computers, or even if they ultimately pay the bad guys.

In short, ransomware is malicious software that gets downloaded (usually on
accident) onto a business computer or network. The perpetrators of the scam
then lock down the computers and threated to erase key data if the business
doesn't pay a ransom.

The new report by cloud IT services provider Intermedia
<https://www.intermedia.net/> surveyed nearly 300 expert IT consultants[1]
for their perspectives on the scope and costs of this trending malware.

The experts' opinions contradicted conventional wisdom regarding the threat
associated with ransomware: Business downtime was ranked as a far bigger
cost than the ransom itself. The survey also found that ransomware is
affecting bigger businesses and multiple victims within each business.

*Key Finding #1: Downtime is more detrimental than ransom costs*
A ransomware outbreak creates two hard choices for businesses: Either spend
multiple days recovering locked files from backups, or pay ransom to an
organized crime syndicate.

In either scenario, though, businesses are likely to face significant user
downtime that overshadows the cost of the ransom. 72 percent of infected
business users could not access their data for at least two days following
a ransomware outbreak, and 32 percent lost access for five days or more.

As a result, experts observed significant data recovery costs, reduced
customer satisfaction, missed deadlines, lost sales and, in many cases,
traumatized employees.

This widely observed downtime implies that few companies possess a business
continuity solution for a ransomware outbreak. Such a solution enables
users to remain productive during a ransomware outbreak. It offers the
capabilities to instantly roll back an archive of files to their uninfected
state and to immediately access those clean files from alternate devices.

Richard Walters, SVP of Security Products at Intermedia, stated, "In the
age of ransomware, what matters is how quickly employees are able to get
back to work. Traditional backup and file sharing solutions are
increasingly inadequate when it comes to addressing this growing concern,
putting businesses at risk. Modern business continuity solutions that
combine real-time backup, mass file restores and remote access combat
threats by minimizing the crippling effects of downtime."

*Key Finding #2: Ransomware is targeting bigger businesses*
Ransomware should no longer be seen solely as a threat to individuals and
small businesses. Nearly 60 percent of businesses hit by ransomware had
more than 100 employees, and 25 percent were enterprises with more than
1,000 employees.

What's more, the virus was observed propagating rapidly within corporate
networks: 86 percent of outbreaks affected two or more employees, and 47
percent spread to more than 20 people.

Felix Yanko, President at Technology & Beyond, added, "The world is
becoming more cyber-aware, but ransomware's depravity keeps it three steps
ahead. CryptoLocker, for instance, will take down multiple offices in one
sweep, should it infect a shared server. A business that tries to restore
from a ransomware attack off of traditional backup usually loses weeks of
work due to lost files, plus a day or more of downtime while computers are
wiped and reloaded. Companies must have measures in place to mitigate the
devastation of ransomware."

*Key Finding #3: Ransomware is a growth industry*
The threat of ransomware is rapidly growing. According to Intermedia's
report, 43 percent of IT consultants have had their customers fall victim
to ransomware, 48 percent saw an increase in ransomware-related support
inquiries and 59 percent expect the number of attacks to increase this year.
Walter Chamblee, Director of Information Technology at Signaturefd.com,
said, "Ransomware attacks are on the rise and are growing in complexity.
Without the right protection measures in place, ransomware can be majorly
disruptive to a business. In these cases, it's the user downtime and the
hassle for IT that's far costlier, even if you pay the ransom."
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