Issue link: https://insights.oneneck.com/i/1495186
The financial services impact The impact of ransomware-triggered shutdowns on financial services facili es jeopardizes customer records and personal data. On most occasions, shutdowns have a ripple effect that impacts many related businesses and a larger ecosystem that can cripple global bank and financial opera ons. 3 It is this widespread impact that has resulted in 55% of financial services firms were vic mized by a ransomware a ack in 2021. 4 In fact, PayPal CEO Daniel Schulman es mates the typical financial services firm faces 1 billion a empted a acks per year. 5 We find the las ng adverse effects can drain revenue and extend far beyond just monetary loss, o en resul ng in a loss of customer confidence and trust, harmful exposure, and poten al liabili es and lawsuits. Accelera ng cybera acks. Financial services providers must defend against an unbelievably high number of cybera acks expected to reach an a ack every 11 seconds. 6 IT teams can no longer handle the high volume of incoming threats without automa on, AI-based cybersecurity, and a proper data protec on posture. High payouts. It is not surprising that sophis cated cybercriminals demand higher ransom payouts for what they recognize as vital business data, especially in regulated industries. The financial services industry experiences higher than usual costs/demands and is a top target for cybercriminals. 7 Costly down mes. Financial services disrup ons of any kind are expensive and are ge ng more dangerous due to the pandemic that expanded the a ack surface with remote employees. Ransomware a acks shake the founda on of an organiza on and raise doubts about its ability to protect customers and private data. Malicious a acks also expose financial services providers to poten ally costly liabili es and harmful exposure. It is es mated that the average cost of down me doubled to $283,000 in 2020 8 , with the average a ack causing 25 days of down me. 9 Failure to comply. As a regulated industry, many rules and requirements govern the financial services industry's opera ons and handling of customer data, privacy protec on, repor ng, and many more. A cybera ack could expose organiza ons to poten al failure to meet regulatory compliance causing costly and lengthy distrac ng audits and repor ng. Reputa on damage. In the a ermath of a ransomware a ack, a financial ins tu on's reputa on can be irreparably harmed, with customers losing trust and taking on a nega ve view of the company brand. The loss of customer loyalty o en has a long-las ng adverse impact on businesses. The accessibility of online banking and discount brokerage firms have made it easier for customers to switch providers. 4