Cyber extortion: What is it and what’s the risk to your business?

Cyber extortion
is a topic that’s been making headlines and keeping business owners up at
night. Is it on your radar? It should be—because it could one day target your business.

So, what exactly
is cyber extortion?

It’s a form of
cybercrime where criminals threaten to damage your business by compromising its
data and digital assets unless you pay a ransom. Often, this involves
ransomware—a type of malicious software that encrypts your data, making it
unusable until the ransom is paid.

But it doesn’t
stop there. Some cybercriminals take it a step further by stealing data and
threatening to release it publicly on dark web leak sites if their demands
aren’t met. This dual threat is known as double extortion.

According to a
2024 report, the number of cyber extortion victims has surged by 77% in just
the past year. Alarmingly, small businesses are four times more likely to be
targeted than larger ones. This is a disturbing trend, especially since smaller
businesses often have fewer resources to defend themselves.

In just the first
quarter of this year, 1,046 businesses fell victim to double extortion. While
that number might seem manageable, the real figure is likely much higher, as
many cases go unreported, hidden in what experts call the “dark number.”

The reality is
all businesses—regardless of size or industry—are potential targets. However,
certain sectors are more frequently attacked. Manufacturing, professional,
scientific, and technical services, as well as wholesale trade, are at the top
of the list. Worryingly, the healthcare and social assistance sectors are also
seeing a significant rise in attacks, despite the potential societal and
political fallout.

Cybercriminals
are both opportunistic and strategic. They focus on regions with strong
economic growth and shared languages. For example, cyber extortion attacks in
the US have increased by 108%.

While the rise in
cyber extortion is alarming, there are steps you can take to protect your
business. Here are some key strategies:

·        
Back up your data: Ensure you have a robust backup plan. Store critical data in an
offline or offsite location and regularly test your backup restoration process.

·        
Keep software updated: Make sure all your devices run the latest software, particularly those
connected to the internet.

·        
Implement Multi-Factor Authentication (MFA): Strengthen your access controls with MFA,
which adds an extra layer of security by requiring multiple forms of
verification (like a code on a separate device) before granting access.
Additionally, limit user access to only the systems they need for their role.

·        
Patch and vulnerability management: Regularly update your systems to fix security vulnerabilities.
Cybercriminals often exploit known weaknesses, so staying on top of patches can
prevent many attacks.

By understanding
cyber extortion and how it works, you can better prepare your business to
defend against it. Remember, the key is to be proactive.

If you need help
preparing your business and keeping it secure, feel free to reach out.