In the past, kidnapping was purely a physical crime. However, in today’s world, it is now possible to “kidnap” data rather than individuals, and demand a ransom. This phenomenon is known as cyber extortion. It has become an increasingly significant threat to businesses, particularly small and medium-sized enterprises (SMEs) in the US. In this article, you will find practical tips and strategies to protect your company from this growing threat.
Explaining Cyber Extortion
Cyber extortion is a form of cyberattack. It involves unauthorized access to your data or your company’s sensitive data. Once the intruder accesses this data, they lock you out preventing you from access to it. Typically, these criminals use a technology known as ransomware to carry out this act. After paying them the money they demand, you will only have access to your data.
The reality is alarming – these incidents are currently on the rise in the US. According to Cy-Explorer, such attacks have increased by a staggering 77% from 2023 to 2024. Experts predict that even more companies will be targeted and affected in 2025. The pattern from research indicates that SMEs are the major targets of these malicious schemes.
Sometimes, these attackers gain access to your data when you open a link they deliberately sent you. If your connection is unprotected, your data will likely become compromized.
Effective Ways to Prevent Cyber Extortion
Cyber extortionists are relentless. They can severely damage your company’s reputation if their demands are not met. The following strategies can help you protect your business from this evolving threat:
- Data Backup: Store copies of your most important files in an offline storage space. This ensures that you can restore your files if an attacker locks you out. It is also a good practice to test the restoration plan periodically to ensure it functions properly.
- Multi-Factor Authentication (MFA): This method restricts employee access to only the files they need, limiting unauthorized access and enhancing security.
- Software Updates: Ransomware is more likely to succeed when your software is outdated. Regular updates help protect your systems and may prevent the need to pay a ransom in the future.
Taking Advantage of Cyber Extortion Protection Services
Despite a backup plan and the use of the other tips, cyber extortionists might still have access to your data. These criminals are continuously developing new methods to target their victims. For this reason, it’s important to rely on cyber extortion protection services. A good example of such a service is a Virtual Private Network (VPN), which can protect you from cyber extortion in the following ways:
- Protecting Your Connection: When using a VPN, your connection remains private. In other words, VPNs will ensure that hackers cannot intercept your data, especially when you visit unsecured websites. It also helps prevent employees from unintentionally giving access to attackers while browsing online.
- Hiding Your IP Address And Location: Cyber extortionists often try to track your IP address and location. Once they have this information, it becomes easier for them to steal your data and lock you out. VPNs help prevent this from happening by masking your IP address and location.
- Translating Your Data: VPNs encrypt your data, converting it into a secure format that is unreadable to anyone who might intercept it. Even if cyber extortionists manage to gain access, they won’t be able to use your data due to this encryption.
Recovery Through Legal and Financial Support
A cyberattack resulting in cyber extortion can be challenging, particularly for SMEs. However, it’s not a setback that can’t be overcome. With the right cyber extortion protection services, your company can recover and strengthen its defenses.
According to a report by IBM, the average cost of cyberattack recovery is $4.88 million. For SMEs, this can be a significant financial burden. That’s why it’s crucial to have legal and financial support as part of your recovery plan.
The following tips can provide the legal and financial support you need:
- Business Insurance: You can now insure your business against cyberattacks. In the event of cyber extortion, your insurer can provide financial support for recovery.
- Contact Your Attorney: Your company’s legal counsel can guide you on the best course of action. They can also help you involve the authorities and pursue legal action against the attacker.
Conclusion
No company, especially SMEs, are immune to the growing cyber extortion threat. However, by taking proactive steps to protect your data, implementing strong security measures, and using protection services like VPNs, you can significantly reduce the risk. Also, make sure that your cybersecurity practices are always up to date.
