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High Costs of a Cyber Attack: Why Protection Comes at a Price

Posted by Simon-David Williams 13-06-2024 03:45 PM

In the digital age, the threat of cyberattacks weighs heavily on businesses of all sizes. The costs associated with a cyberattack can be astronomical, especially when multiple experts are required to address the situation. This article explores the various costs involved in managing a cyberattack for companies of different sizes, detailing the crucial roles of the experts involved.
 
 

Costs for a company with $5M in revenue

  • IT investigation: $5,000 to $30,000
    Specialized investigators identify the source and extent of the attack. This process uses advanced technologies and requires specialized skills.
  • IT operations restoration: $10,000 to $100,000
    Technicians restore IT systems and eradicate malware. Swift and meticulous intervention is crucial to minimize downtime.
  • Legal fees: $1,500 to $15,000
    Specialized lawyers assist in navigating post-attack legal obligations, including data breach notifications.

Costs for a company with $25M in revenue

  • IT investigation: $15,000 to $75,000
    The investigation is more complex and extensive, requiring additional resources.
  • IT operations restoration: $25,000 to $250,000
    Restoration involves larger and potentially more critical systems, increasing costs.
  • Legal fees: $3,000 to $20,000
    Companies of this size have more complex legal obligations, requiring deeper legal expertise.

Costs for a company with $100M in revenue

  • IT investigation: Starting at $50,000
    The complexity of the investigation is significantly increased, requiring a dedicated team of experts.
  • IT operations restoration: $250,000+
    Critical systems must be restored quickly to avoid massive financial losses, significantly increasing costs.
  • Legal fees: $3,000 to over $50,000
    The legal ramifications are vast and complex, requiring a robust legal team to manage the consequences.

Roles of different stakeholders

  • IT investigators: Identify the source, nature, and extent of the attack. Their expertise is essential for understanding and containing the attack.
  • Experts in hacker negotiations: Negotiate with hackers in ransomware cases. They possess the necessary skills to handle delicate situations.
  • IT technicians: Restore IT systems. Their swift intervention is crucial to minimize business interruptions.
  • Specialized lawyers: Manage legal aspects post-attack. They ensure legal compliance and minimize the risk of sanctions.
  • Media communication firms: Manage the company’s reputation after an attack. Their expertise helps minimize reputational damage.

Conclusion
Managing cyberattacks is an expensive endeavor requiring the intervention of multiple experts. Understanding the different costs and roles of stakeholders can help businesses better prepare and mitigate the potentially devastating impacts of a cyberattack. By investing in adequate protective measures, businesses can not only prevent attacks but also reduce the costs associated with managing them. Prices are based on my personal experience and may vary from one organization to another, depending on the specific case of the cyberattack.

 
Simon-David Williams. ISM Group
https://www.groupeism.ca/