The Pain-Free Way to Get There Now
In an era marked by economic volatility, geopolitical tensions, and rapid technological advancements, businesses face heightened cybersecurity risks. Research shows that 88% of firms operating in high-uncertainty environments report significant cybersecurity threats, compared to just 42% in “Normal” or more certain times. These risks are compounded by evolving cyberattack tactics, supply chain vulnerabilities, and the increasing sophistication of threat actors. It is clear that Strengthening Security in Uncertain Times is More Critical Than Ever.
Yet, companies are hesitant to invest in strong cybersecurity. Time, Cost, and Ease of Use are the most common reasons companies give for their reluctance.
Why is Cyber Risk magnified in uncertain times, and How can Businesses Act Now to Better Protect their Digital Assets – without all the Pain?
Why Cyber Risk Is Higher During Uncertain Times
- Economic Strain on Security Measures
Economic uncertainty often leads to budget cuts, which can undermine cybersecurity investments. This creates gaps in defenses, making organizations more vulnerable to attacks. It’s happening now, and it may have grave consequences.
- Evolving Threat Landscape
Cybercriminals adapt quickly to exploit new vulnerabilities. They’re looking for low hanging fruit. The higher the uncertainty, the lower the fruit. From phishing campaigns to ransomware attacks, threats have grown increasingly sophisticated, leveraging AI and exploiting remote work setups.
- Supply Chain Vulnerabilities
The complexity of global supply chains introduces risks such as third-party software vulnerabilities and cascading cyberattacks across interconnected systems. The Domino Effect can be devastating.
- Disruption of Innovation
Many firms delay or cancel technological initiatives due to cybersecurity concerns, hindering growth and competitive advantage. For example, 81% of CFOs in high-uncertainty environments report halting innovation projects due to cyber risks. Halting innovation can lead to severe loss.
Important History Lessons
People say history repeats itself. At the very least, we should learn from the past. So let’s take a look back at one of the most uncertain times in recent history. 2020, for most of us, meant extreme uncertainty. Cybersecurity also took a hit, while Cybercrime flourished.
The long-term financial impacts of cyberattacks on businesses in 2020 were profound and extended well beyond immediate costs like ransom payments or system recovery. These effects manifested in various ways, including increased operating expenses, reputational damage, and disruptions to business continuity. Below is an overview of the most significant long-term financial impacts:
1. Increased Costs of Doing Business
Cyberattacks forced businesses to allocate substantial resources to mitigate future risks:
- Higher insurance premiums: Companies faced increased cybersecurity insurance costs due to higher risk profiles following attacks.
- Investment in security upgrades: Many organizations had to overhaul their IT infrastructure, implement advanced security protocols, and adopt zero-trust architectures.
- Ongoing monitoring and compliance: Businesses incurred recurring costs for cybersecurity audits, employee training, and compliance with stricter regulations.
For example, MGM Resorts International reported a $100 million hit to its quarterly results after a cyberattack in 2023, along with an additional $10 million spent on legal and consulting fees.
2. Revenue Losses and Operational Downtime
Cyberattacks often led to significant revenue losses due to prolonged system outages:
- Downtime costs: For many businesses, downtime lasted weeks, resulting in lost productivity and revenue. In 2020, downtime alone cost companies over $280,000 per incident on average.
- Customer attrition: Breaches eroded customer trust, leading to reduced sales and long-term damage to client relationships.
For instance, Garmin’s ransomware attack disrupted services globally, affecting customer access and causing operational losses estimated at millions of dollars.
3. Reputational Damage
The public disclosure of cyber incidents damaged brand reputation:
- Loss of consumer trust: Companies like Twitter suffered reputational harm after high-profile breaches exposed vulnerabilities in their systems.
- Stock price declines: Publicly traded companies often experienced sharp drops in market capitalization following breaches. For example, Okta lost $6 billion in market value after a supplier breach was revealed.
Rebuilding trust required costly marketing campaigns and customer retention efforts.
4. Regulatory Penalties and Legal Liabilities
Governments imposed hefty fines on businesses that failed to protect sensitive data:
- Penalties for non-compliance: Companies faced fines for violating data protection laws such as GDPR or CCPA. For example, Marriott paid millions in fines following its data breach.
- Legal settlements: Lawsuits from affected customers or partners added to financial burdens.
5. Supply Chain Disruptions
Cyberattacks on third-party vendors created ripple effects across supply chains:
- Cascading losses: Breaches at suppliers or partners disrupted operations for interconnected businesses. For instance, the SolarWinds attack impacted thousands of organizations globally.
- Increased scrutiny: Businesses had to implement stricter vendor risk management practices, adding to operational costs.
6. Long-Term Productivity Losses
Even after recovery from attacks, businesses faced lingering productivity challenges:
- Employee morale issues: The stress caused by cyber incidents affected workforce morale and efficiency.
- Delayed innovation: Many firms postponed technological initiatives due to cybersecurity concerns, hindering growth opportunities.
7. Failure
For Small to Medium Sized Businesses (SMBs), the outcome post-cyberattack was and is, more often than not, catastrophic.
Studies show that 75% of SMBs could not continue operating if they were hit with ransomware.
60% of SMBs have FAILED within 6 months of a cyberattack.
The financial impacts of cyberattacks in 2020 were not limited to immediate expenses but extended into long-term operational challenges. From increased insurance premiums and regulatory fines to reputational damage and supply chain disruptions, businesses faced cascading costs that highlighted the critical need for robust cybersecurity measures. As threats continue to evolve, investing in proactive defenses remains essential for mitigating these enduring financial consequences.
What are the Recommendations?
From Cyber Experts to government organizations, Cybersecurity Recommendations, with the exception of meeting AI-driven Cybercrime with AI-based security practices, are not so different from 5 years ago.
Top Tips include:
- Deploy Phishing-Resistant Multi-Factor Authentication (MFA) – While MFA is thought to be a layered approach, Phishing-Resistant MFA should eliminate ALL shareable secrets. This means No Passwords.
- Backup Data – Encrypt and backup files both on-site and in the cloud
- Adopt Zero Trust Architecture – Verify identity before granting access – at every step and every endpoint.
- Conduct Regular Risk Assessments – Identify risks before they are exploited.
- Train Your People – Since humans are the known weakest link, do your best to ensure employees understand best practices such as how to recognize phishing emails, etc. This includes communication across all departments.
- Monitor Supply Chain Security – Ensure third-party vendors meet stringent cybersecurity standards.
- Establish Incident Response Plans – Know how to detect, respond, and recover from attacks.
- Leverage Advanced Technology – Invest in AI-driven threat detection systems and endpoint protection tools that can identify anomalies in real time.
The Basics FIRST: Phishing-Resistant Passwordless MFA | Busting Myths & Busting Through Uncertainty
There is no shortage of talk out there about cybersecurity today. Now, more than ever, it’s critical to understand the Truths vs the Perceptions. Here are a few misconceptions about Passwordless Multi-Factor Authentication, along with the Realities.
Myth 1: I need to cut costs. I Can’t afford Strong Security
Bust: You Need Strong Security Now More Than Ever. The right solution will CUT Costs.
- TraitWare is LESS than the price of a cup of coffee per user per month, and less than any of your other monthly subscriptions.
- Not only is it affordable, it will Save on IT Support Costs and lower Cyber Insurance Premiums.
- Staying with Legacy technology could result in Irreparable Damage, while Embracing innovation with modern MFA will give you a competitive edge, a chance to Shine.
- Most importantly, deploying Strong MFA could prevent Total Failure.
Myth 2: It’s Too Hard/Complicated to implement, use, and maintain (so it won’t be adopted)
Bust: It will Make Life SO MUCH EASIER for You, Your Admins, Your Users, and Your Customers.
- TraitWare’s solution removes steps, drastically reducing friction. Single-Step MFA for login in 3 touches or a few seconds.
Myth 3: It Will Take Too Much Time
Bust: It will Save you Time from Enrollment to Login.
- TraitWare can be up and running in a matter of minutes. Depending on your company applications, setup can typically be done in less than a day. Admin controls are simple clicks, and login takes a few seconds.
Myth 4: It Won’t Happen To Me. I think I’ll bury my head in the sand, and wait til the storm passes.
Bust: You have a 94% chance that Bad Actors are either trying to get in, or Inside Now. Without Strong Security, You Could Risk Losing Everything.
Myth 5: It Doesn’t Work / Cybercriminals Can BY-PASS MFA!
Bust: It doesn’t work if it’s not Phishing-Resistant. That means No Shareable Secrets. This means: Passwordless.*
- Phishing is the #1 method of attack. With TraitWare’s ‘Phish-Proof’ MFA, there’s nothing to Phish.
*For those accounts still requiring a Password, use a Password Manager, but Secure it with Passwordless MFA.
Conclusion: Cut Costs, Save Time, Remove Friction. Get There NOW and Come Out Winning.
In times of uncertainty, businesses can and should view cybersecurity not as a cost but as a strategic investment essential for resilience and growth. By implementing robust measures such as STRONG ‘Phish-Proof’ MFA, regular backups, encryption, employee training, AI-driven technology, and risk assessments, organizations can significantly reduce their exposure to cyber threats while safeguarding their long-term objectives. The stakes have never been higher—proactive action today can prevent devastating consequences tomorrow.
For more information on how TraitWare can simplify and secure login, please reach out at any time. You can also book a quick demo or start your free trial today!