Nineteen ransomware attacks happen every second in 2023, making it a terrifying reality for businesses. As more critical data, personal information, and operations live online, attackers are becoming increasingly sophisticated in infiltrating business networks. Ransomware attacks have increased by 37% in 2023 alone according to a report by Zscaler, making them an unfortunate reality with severe consequences for businesses of all sizes. While the idea of being forced to give cybercriminals money to unlock your business data is terrifying, the cost of ransomware attacks goes far beyond the monetary compensation.

Ransomware is when malware infiltrates a computer system or network, encrypting critical files and holding them ransomware. Business owners are then forced to pay a cybercriminal to (hopefully) unlock and return their data. With the number of ransomware attacks increasing every year, businesses need to know the full scope of ramifications if they are hit with an attack.

Ransomware Payments

The average cost of ransomware attacks is $1.05 million, and those costs are expected to reach $265 billion globally by 2031. These hefty payouts could be devastating for small businesses and have caused many to close their doors permanently. Ransomware is not slowing down, and the costs of ransomware go far beyond these financial payments. There are additional costs of ransomware attacks beyond the ransom payment itself.

Downtime Costs

When systems are offline, it affects employee productivity and prevents customers from getting to their information or data. This leads to frustrated, angry customers and a potential PR risk. Even once systems are unlocked, it might take a while to get them up and running. Having a cloud backup solution can help minimize your downtime and make restoring your systems easier and more efficiently.

Reputational Damage

81% of consumers say they wouldn’t engage with a business that had a data breach. Your business’s reputation and trustworthiness can take an additional hit in the mind of consumers if you experience a ransomware attack. This might lead to churned customers and a loss of business.

Cyber Insurance Increases

First, not having insurance means your business might not be able to survive a ransomware attack. You might be forced to pay a ransom out of pocket, which would have a crippling effect to your bottom line. If you didn’t have cyber liability coverage in the first place, it could be harder to get it in the future. If your business has the foresight to have cyber insurance, a ransomware attack could mean premiums could increase.

Going Out of Business

All of the reputational and financial costs seriously add up. According to the US National Cyber Security Alliance, 60% of small businesses that experience a cyberattack go out of business within six months. Between the financial hit and loss of customers, many businesses can’t recover. The true cost of ransomware could be your business.

How TPx Can Help Protect Against Ransomware

TPx is a leading cybersecurity provider and can help your business with protections like employee security awareness training, endpoint security, backups, email security with inbox detection and response, and advisory services. All these tools protect different facets of your business — from the front lines with employees to the mobile devices powering your team members on the go. To learn more about ransomware and how to protect your business, check out TPx’s free ransomware e-book. Need help protecting your business from ransomware attacks? Contact a TPx representative today to learn how we can help strengthen your security posture.