43% of SMEs have suffered a cyber attack

60% of those companies closed their business in the six months as consequence of the attack

Dealing with cybersecurity plays an essential role in managing online reputation.

An attack on digital identity can negatively affect the brand reputation from an image point of view and an economic point of view.

A particular type of cyber attack is cyber extortion.

This extortion is perpetuated online by forcing an individual or a company to pay a ransom in exchange for recovering access to stolen IT resources.

According to the aforementioned IC3 report, the cost of cyber extortion amounts, in 2021, to $60,577,741.

Types of cyber extortion

The assets blocked by a cyber attack aimed at digital extortion can be of any nature.

The most common are ransomware and DDoS attacks.

In 2021, the cost of the ransomware ransom is $49,207,908.

On the other hand, DDoS attackers use a mixed attack strategy that combines various attack methods with social engineering, credential theft, and physical attacks.

According to Kaspersky, there were 91,052 DDoS attacks in the first quarter of 2022, four times the same period of 2021.

What are the risks of cyber extortion?

Three main risks can be identified: personal data, threats, and reputation:

• Personal data: blocking company personal data and those of the customers can expose the company to possible cyber-attacks;
• Threats: one of the most common risks lies in constantly being subjected to threats from cyber criminals;
• Reputation: whenever an IT infrastructure system suffers an attack of this type, the company digital reputation drops dramatically.

When they have to deal with a blocked platform or service, customers are led to change their website.

Furthermore, any private and personal information disclosure can decrease customer confidence in the business.

A study conducted by Fundera reports that 43% of SMEs have suffered a cyber attack; 60% closed their business in the six months following the attack.

The most affected sector, however, remains the healthcare sector.

What to do if you are a victim of cyber extortion?

A victim of cyber extortion should never pay the ransom because hackers consider them an easy target.

Next, report it to the competent authorities and contact an expert company.

Discover more statistics and data on the risks for companies in ReputationUP’s most complete guide on cyber extortion.