How Much Does The Average Cyber Attack On An MSP Cost?
Managed service providers (MSPs) are likely well aware of the changing cybersecurity landscape and sophistication of cybercriminals. The cybersecurity landscape continues to evolve, and MSPs are becoming victims of various attacks.
To malicious actors, managed service provider (MSPs) is a perfect target because managed service providers host a wealth of information across a variety of networks and industries. Instead of the malicious actors going after one network or device, they can target many by going after managed service providers(MSPs). One successful attack can mean the cybercriminals can gain access to all the things MSPs can access. If one data breach occurs, ransomware could quickly and easily encrypt all the servers and networks of their clients before anyone is even aware of what is taking place.
Like any other business or organization across the globe, MSPs are not exempt from cyberthreats or cyberattacks. So, staying alert and having a solid defense is crucial in protecting their clients’ operations. When MSPs protect their own network, they will be able to turn their attention to the needs of their clients.
A Rising Business
It has not been easy to pinpoint how much money cybercriminals pocket each year, especially because not all cyberattacks are reported. In many cases, some cyberattacks are not reported because they have not been discovered. The global cost of cybercrime continues to rise, and the world is beginning to take notice. The majority of the costs can be attributed to things like the following:
- System downtime
- Reputational damage
- Recovery costs
- Insurance costs
The cost of a major cyberattack on a critical major U.S. infrastructure or service provider could compare to that of the cost of a natural disaster, reports recently found.
The report, from the Foundation for Defense of Democracies (FDD) and insurance solution provider, Intangic, used a risk-rating system developed by Intangic to estimate the impact of unstable and disruptive cyberattacks.
The findings from the report determined that a Managed Service Provider that experienced disruption for three days and could not deliver IT services to hundreds or thousands of customers across a variety of industries could lead to a loss of nearly $80 billion, which is 17 percent more than the $65 billion in losses experienced due to Hurricane Sandy.
MSPs Are Widely Impacted
When you hone in on ransomware attacks against MSPs, the demanded ransoms increase and the malicious actors use more advanced and sophisticated tools. Cybercriminals were once going after large firms like Fortune 500 companies, but they are now directing more of their attention to MSPs. Cybercriminals who take action because they are financially motivated to have taken a greater interest in MSPs. Cybercriminals are aware that some MSPs do not have the proper resources in place to protect themselves against cyber threats and cyberattacks. Also, going after an MSP will allow cybercriminals to gain entrance to multiple businesses, instead of one door.
It is more than ransomware that MSPs have to be concerned about. Sometimes, attacks on MSPs are carried out to help cyber criminals perform other types of attacks on MSP customers. Cybercriminals view MSPs as valuable targets. Hackers can easily insert malicious code into a codebase and distribute that malicious code to customers. After taking these actions, hackers will have access to the networks of customers, including local, state, and federal government agencies and organizations.
While many businesses may think the data they have will serve little to no value to cybercriminals, every business leader should still view their business as a target. Any form of data is valuable, regardless of what type of data it is, and some people are willing to do whatever they have to do to get their hands on that data. Cybercriminals can be the cause of a major disruption to any business, and it can result in a major blow to a business’s reputation.
Not all MSPs have the resources or staff to deploy strong and effective security solutions. Fortunately, there is a wealth of security solutions that can protect MSPs. MSPs can find security service providers and specialists to help them develop and implement the right security features. As more malicious actors target the MSP industry, creating a solid defense for the IT systems is critical. If an MSP has designed a thorough security strategy, that MSP will gain a competitive edge over the cybercriminals.
Educating MSP Clients
While many MSPs know what is taking place in the IT and cybersecurity landscape, this does not mean their clients are aware of what is happening. Clients turn to an MSP for guidance and advice on all things IT-related. This opens the door for MSPs to provide valuable information to their clients on the dangers and risks surrounding their IT environments. It does not matter if it is software that needs to be updated or offering tips on how to spot phishing emails, MSPs can take steps to educate their clients because this will be the key to their success and the success of the MSP.
Many organizations will look to switch MSPs if they feel an MSPs dropped the ball in protecting them from cyberattacks. MSPs can eliminate the targets surrounding the MSP landscape by protecting their networks, organizations, and the operations of their customers.
Fighting cyber attacks is a challenge that has proven difficult for many organizations, but with the right strategies and practices in place, MSPs can improve their security foundation and stay out of the way of cybercriminals. There are steps MSPs can take to build a strong security defense. When MSPs deploy the right tools, partner with the right experts, offer employee education and training, and educate their clients, MSPs will begin to gain an edge over cyber criminals.
Veltec Networks has invested in the right tools, we hold our vendors accountable for their level of cybersecurity readiness and we ensure all clients have the right cybersecurity solutions to protect their businesses and everyone’s livelihoods. Are you looking for a trusted cybersecurity partner who will listen to your needs and advise a plan that will ensure you have the level of protection you need? Contact us today to schedule your consultation.