CYBERSECURITY
Don’t take the risk
The impact of a cyberattack can be significant in monetary and reputational terms. Is it something a customer can afford? No – and MSPs and VARs can help customers to avoid them, as Neil Langridge, marketing and alliances director at e92plus, explains.
In an age where data breaches and ransomware attacks dominate the headlines, it’s no longer a question of ‘if’ but ‘when’ a business will be targeted or caught in the crossfire of an attack. Cyberattacks can have devastating consequences, and many companies underestimate the full financial impact until it’s too late. From operational downtime to reputational damage, the costs can add up quickly. For the channel, this represents a huge opportunity to add value and drive business growth through cybersecurity sales and service – and a risk. So, can businesses afford the risk, and how can VARs and MSPs help their customers understand the calculation? Let’s break down the financial impact of a cyberattack, examine examples and explore why investing in cybersecurity is a smarter, more cost-effective choice. Direct costs of a cyberattack Cyberattacks can impose significant direct costs on a business, many of which are immediate and unavoidable: q Ransom payments: Ransomware attacks often involve a demand for payment to regain access to critical systems. The average ransom demand in the UK in 2023 was about £200,000, according to the National Cyber Security Centre (NCSC). However, paying the ransom doesn’t guarantee data recovery and can embolden attackers to strike again. w Legal fees and fines: Under the General Data Protection Regulation (GDPR), businesses can face hefty fines
for failing to protect customer data. In 2022, a UK-based company was fined £1.25 million following a breach that exposed sensitive customer information. e Incident response costs: Responding to a cyberattack often requires hiring external cybersecurity experts to investigate and remediate the breach. These services can cost tens of thousands of pounds, depending on the severity of the incident. r Customer notification and support: If customer data is compromised, businesses must notify affected individuals and may need to provide credit monitoring services, which further adds to the expense. Indirect costs: the ripple effects of an attack Beyond the immediate financial losses, cyberattacks can have long-term consequences that are harder to quantify but equally damaging. q Operational downtime: Downtime caused by a cyberattack can cripple a business. In the UK, a small manufacturing firm in Birmingham reported losing £50,000 in revenue per day during a two- week ransomware-induced shutdown. w Reputational damage: Customers trust businesses to protect their data. A breach can shatter that trust, leading to customer attrition and difficulty acquiring new clients. For example, a retail chain in London saw a 15% drop in sales in the months following a publicised data breach. e Loss of intellectual property: Cyberattacks can result in the theft of
Neil Langridge marketing and alliances director
e92plus.com
“
The average ransom demand in the UK in 2023 was about £200,000, according to the National Cyber Security Centre (NCSC).
”
424
Powered by FlippingBook