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Impacts of Cyberattacks on Businesses

July 30, 2024

Cyberattacks continue to be a problem for businesses of all sizes. Small and medium enterprises (SMEs) are not immune from the problem. According to the U.S. Chamber of Commerce, 60 percent of small businesses say cyberthreats are a top concern. That’s even more than are concerned about another pandemic (54 percent).

Cyberattacks cause problems like reputational damage, financial issues, and, in some industries, potential regulatory punishments. However, companies need to digitize operations to remain competitive, so their only choice is to try to strengthen their cyber defenses and manage risks.

Here’s a closer look at the threats that cybercriminals pose and what businesses and IT security specialists are doing to address them. 

Types and Impacts of Cyberattacks on Businesses

Cyberattacks come in various forms. While some rely on sophisticated manipulation of computer code, others simply focus on exploiting careless users or weak passwords. 

The three most common types of attacks are phishing, malware, and ransomware. All can cause disruptions to business operations, be costly to fix, and lead to reputational damage. 

Phishing Schemes

Phishing schemes focus on deceiving people into revealing sensitive information like login credentials. This hacking technique is not technically sophisticated, but methods of obtaining passwords or codes can be very easy for unsuspecting victims to fall for. 

Phishing often involves using fake emails or websites that look or sound official. Victims hand over or enter sensitive information because they think the request is legitimate. 

Once they have logins, hackers enter the system, make changes, access sensitive data, and steal financial information.  

Malware

Malware is another common cyberthreat. It is malicious software designed to damage or disable computers or obtain and transmit sensitive data.

Hackers typically write these programs and then try to get company employees to download them by sending them in an email or downloading them automatically when someone visits a certain webpage.

Ransomware

Ransomware is a specific type of malware. After it gets installed on a computer network, it encrypts a business’s data so that it becomes unreadable. Hackers hold the decryption key and demand a ransom payment before they give it to the company.

Ransomware can result in severe disruptions and financial losses if the company agrees to pay the ransom. Also, companies rely on data, so operations could stop completely until the data gets decrypted.

Ransomware is becoming more common, with a 74 percent increase in attacks in 2023 compared to 2022. Ransomware hackers can target vital services, like healthcare facilities and the financial sector, in hopes that they will be more likely to pay the ransom.

Techniques for Protecting Against Cyberattacks

Companies of all sizes can take steps to limit the risks associated with cyberthreats. These anti-hacking strategies range from simple options like training staff to avoid malware and phishing scams, to advanced techniques. For instance, some companies use zero-trust monitoring to constantly verify users and devices or aggressive data backup schedules to counteract the effects of ransomware.

The following three cybersecurity steps are vital for businesses of all sizes:

Strong Password Policies

Strong password policies are fundamental for cybersecurity. A business can require staff and users to create complex passwords and regularly update them. This practice reduces the risk of unauthorized access by making it difficult for hackers to guess simple passwords and limiting the timeframe they would have to use stolen credentials. 

Meanwhile, multi-factor authentication (MFA) requires employees to use a separate code from a text, email, or authenticator app before logging in. Hackers would not be able to access the system even if they had stolen credentials unless they also had the user’s mobile phone or email account.  

Regularly Updating Software and Systems

Hackers often look for outdated software, which has more vulnerabilities that they can exploit. Software makers provide updates that patch existing flaws. However, it is up to users to perform these updates. Those who don’t leave the door open for cyberattacks. 

Companies need to perform updates when they are released and plan for the lifecycle of their software so that they can manage the switch to a newer version before the current version becomes obsolete. Likewise, IT departments need to keep systems and hardware updated. 

Employee Training on Cybersecurity Best Practices

Educating staff about recognizing phishing attempts, avoiding suspicious links, and securely handling sensitive information can reduce the risk of a cyberattack. Training sessions can let employees know about security best practices. You might also run simulated attacks to ensure employees and IT team members are enacting these strategies and are prepared for a real cyberattack. 

Career Outlook for Information Security Professionals

The need for cybersecurity specialists to manage business systems is rising. The Bureau of Labor Statistics forecasts that demand for information security analysts will increase by 32 percent by 2032. This is more than double the growth for all computer occupations and 10 times the growth for all professions in the country. Those with training in computer science will have the technical skills to handle these positions.

Information Security Analyst

Information security analysts are in high demand. These professionals are responsible for monitoring and protecting a company’s networks and computer systems. The job usually involves analyzing security breaches in the industry and developing strategies to prevent future attacks.

Cybersecurity Consultant

Cybersecurity consultants provide specialized expertise to help companies develop and implement robust security measures. They assess risks for clients, recommend security improvements, and guide companies in responding to cyber incidents. 

Network Security Engineer

A network security engineer focuses on designing and maintaining secure internet networks for a company. Their goal is to ensure the company’s networks can ward off hackers. This job involves configuring firewalls, using encryption protocols, and monitoring network activity for suspicious behaviors or unusual movements of data. 

Chief Information Security Officer (CISO)

Specialized security experts are necessary for fields like health care, e-commerce, and finance. These industries are particularly vulnerable to cyberattacks due to the sensitive nature of the data they handle. In these high-risk sectors, a chief information security officer (CISO) can lead cybersecurity efforts. 

CISOs develop and implement security strategies and ensure employees carry out their plans. This job involves managing risks that the company cannot control and developing worst-case scenario plans to deal with data breaches. 

Education Requirements and Skills for Success

Having specialized skills and education, like a master’s in computer science, is crucial for success in cybersecurity. Professionals must be well-versed in information security, but they also need a strong understanding of IT and programming.

A degree in computer science can open doors to the four careers we just outlined and other related specialties. These programs include courses on information security, networks, computer systems, and all the other factors that play a role in cybersecurity.

The knowledge and skills from a program like this can set the stage for a successful career in information security.

The demand for skilled information security professionals is growing. Obtaining a degree in computer science and developing specialized skills are key steps toward building a career in this field.