How cyber threats can affect your organization

Cyberattacks can have devastating consequences on your organization’s data and security systems. These online attacks can spread malware, disrupt systems, and steal sensitive and valuable information. Learn how you and your IT department can protect physical security systems against evolving cyber threats.

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What drives cyberattacks?

Cybercriminals can have many varying motivations—but most often, money drives cyberattacks.

How cybercriminals use spyware

Some attackers use malicious software known as spyware. They can install it on your computer or phone to steal passwords. Cybercriminals can also create fake websites that mimic bank accounts or online retailers. These phishing sites trick you into entering your credit card information or account passwords, compromising your cybersecurity.  

 

 

Ransomware: A growing threat

Ransomware attacks are increasingly costly and disruptive. Once installed by attackers, this malware blocks access to critical data or systems until a ransom is paid. Ransomware groups often use multiple threats to force payment. They might block access to data, threaten to release sensitive information, or disrupt services with denial of service (DOS) attacks.

According to Cybersecurity Ventures, ransomware will cost organizations approximately $265 billion USD annually by 2031. And many organizations are realizing that the threat landscape is only growing. Our recent report confirms that in 2023 alone, 42% of organizations have enhanced their cybersecurity tools to protect themselves against such threats.

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The hidden cost of cyberattacks

Cyberattacks can have a significant financial impact. IBM's 2023 report stated that the average cost of a data breach is $6.94 million CAD for Canadian companies.

And even in cases where financial theft isn’t the goal, organizations can face other repercussions such as:

• Legal, regulatory, reputational, and technical recovery costs
• Reduced productivity due to disrupted software
• Operations stopped by network or website downtime (such as distributed denial of service (DDoS) attacks)
• Expenses to fix damaged devices or websites
• Loss of customer trust

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How small businesses can be affected by cyber threats

Think your organization is too small for cyberattacks? Think again. Our recent survey shows that 57% of small businesses view physical security as mission-critical to support staff, customers, and assets.

Yet most cyber threats, like malware spread by phishing emails, aren’t aimed at a specific victim. Anyone can be affected.

The 2023 IBM report noted that although the average cost of cyberattacks for smaller organizations is typically less than those faced by larger companies, the financial impact can be much harder to recover from:

• Average cost of a cyberattack for organizations with 25,000+ employees was $5.42 million USD
• Average cost of a data breach for medium-sized organizations (5,001 to 10,000 employees) was $4.33 million USD
• Average cost of a cyberattack for smaller organizations (500 to 1,000 employees) rose from $2.71 million in 2022 to $3.29 million USD in 2023
• 78% of small-to-medium sized organizations fear cyberattacks could shut down their operations

Long-term impacts of data breaches

Data breaches can have lasting financial consequences. While most expenses are immediate, organizations still incur residual costs. This affects overall brand trust and employee turnover.

Data breach costs can last for years, especially in high-regulation environments. And these usually peak after two years. In low-regulation areas, most costs occur within six to nine months. Many of these organizations also incurred fines of up to $250,000 USD or more.

The bottom line

Cyberattacks can be costly, time-consuming, damaging to your organization’s reputation, and disrupt operations for years. Thankfully you can take proactive measures to minimize your risk.

Here are some cybersecurity best practices that can help:

1. Understand the threat landscape. Do your best to keep up with the evolving threat landscape. Then educate your employees on the dos and don’ts.
2. Conduct a risk assessment and asset inventory. Make a list of the computers, IIoT devices, users, types of data, and so on and the different levels of accessibility. This will help decide on higher levels of cybersecurity protection depending on the asset or individual.
3. Stay on top of system updates and patching. Consider automated tools that alert you to software or firmware updates, or push them to your system once they’re ready.
4. Use multi-factor authentication. Don’t rely on passwords alone as these can easily be stolen or shared.
5. Plan for breach recovery. Having a cybersecurity incident response plan in place is essential.

By working closely with trusted cybersecurity partners and choosing solutions that are secured by design, your organization can stay up to date and defend against cyberattacks and threats as they evolve.