Cyberattacks: Why Is This Issue a Concern for Businesses?

The digital world has revolutionized the way companies operate, enabling access to new markets, process optimization, and cost reduction. However, this connectivity also brings with it the threat of cyberattacks that can have serious consequences.

Although many companies are aware of this risk, there is still little awareness of the threats they may face. In fact, it is estimated that more than 800 cyberattacks occur each week in Portugal.

Given this scenario, it is essential that companies be prepared to deal with the possibility of a cyberattack. To help you better understand this threat your business faces in the online world, we’ll explain what a cyberattack is, the different types of cyberattacks that exist, and the risks they pose to your company. We’ll also discuss how to protect yourself from attacks by hackers and how minimize the effects of a possible crime.

What is a cyberattack?

A cyberattack is a series of actions aimed at stealing, exposing, or destroying data and information belonging to individuals, institutions, or companies. This type of cybercrime can target network-connected equipment and systems, rendering their services inoperable; or it can target information storage systems to spy on, steal, or use data for blackmail.

There are several techniques used by hackers, in a cyberattack:

• Sending emails with fake attachments;
• Take over the networks;
• Change the information in the system to prevent access;
• Take the system offline.

Is a cyberattack the same as a computer crime?

Although they are related, cyberattacks and computer crime are not the same thing.

A cyberattack is an offensive action aimed at breaching a computer system or network. Cybercrime, on the other hand, is a broader term that refers to any criminal activity involving the use of information technology. This type of crime can include cyberattacks, but also fraud, identity theft, computer forgery, computer sabotage, and unauthorized access and interception.

Although a cyberattack is a specific type of computer crime, not all computer crimes are cyberattacks. It is important to understand this difference so that companies can take steps to protect themselves against potential cybercrimes.

What are the different types of cyberattacks?

Cyberattacks take many forms and are constantly evolving. Therefore, it is essential to understand the different types of attacks in order to identify potential threats.

Malware

It is software malicious, disguised as an attachment or link from an email, which allows users to hackers to infiltrate a computer network. This type of cyberattack often disrupts the entire information technology network.

Attack Denial-of-Service (DDoS) distributed

This attack occurs when multiple systems are compromised by an attacker and used to flood a website or network with malicious traffic. As a result, users are unable to access the service.

Phishing

Phishing is the act of sending fraudulent emails on behalf of legitimate companies. This type of cyberattack is used to gain access to business or personal data, such as login credentials or credit card information.

SQL Injection Attacks

This cyberattack occurs when a hacker injects malicious code into a server that uses SQL (Structured Query Language), forcing it to disclose protected information.

Scripting cross-site (XSS)

In this type of attack, the cybercriminal gains access to personal information when the user clicks on a “script-injected” link (malicious code that is embedded in a website’s code) or enters personal information into a form containing the malicious code.

Botnets

Botnets are computer networks infected with malware and remotely controlled by a hacker. These computers are used to carry out malicious activities, such as cryptocurrency mining or the theft of personal information.

Ransomware

O ransomware It is a type of malware which encrypts data on a system or network, preventing access to it until a ransom is paid.

What are the risks of a cyberattack to your company?

According to the the National Cybersecurity Center’s 2022 “Risks and Conflicts” report, the number of cybersecurity incidents in Portugal increased by 26%.
Investment in this area should therefore be considered a priority, as the risks are varied and can directly impact the business.

Among the main consequences of a cyberattack are:

• Financial loss;
• Impact on credibility;
• Loss of customers;
• Loss of personal and corporate data;
• Regulatory penalties.

Furthermore, it is important to realize that a successful attack can disrupt a company’s operations, which can have long-term negative effects. Therefore, it is essential to prepare for and invest in preventive measures to minimize the risk of cyberattacks.

Recent Cyberattacks and Their Impacts

Today, cyberattacks are becoming increasingly frequent and can cause significant damage to the affected companies, both financially and in terms of their reputation and image.

Some of these crimes are so iconic that they go down in history. Learn about three of the world’s most iconic cyberattacks.

SolarWinds

The hacking of the supply chain of the SolarWinds It is one of the most destructive in history. It is estimated that approximately 18,000 customers using the Orion network monitoring software may have been victims of the attack. Confirmed victims include companies such as Microsoft and FireEye, as well as U.S. government agencies.

Colonial Pipeline

When the Colonial Pipeline Company was the target of a cyberattack, and all operations were shut down to contain the attack. To restore its computer system, Colonial Pipeline paid a ransom of 75 bitcoins (about $4.4 million at the time). This cyberattack was the largest in U.S. history to target oil infrastructure.

JBS Foods

Also, the JBS Foods, the world's largest beef and pork processor, paid a ransom of $11 million after a cyberattack shut down its plants.

How Can You Protect Your Business from Cyberattacks?

Companies that fall victim to cyberattacks can suffer serious business disruptions. To prevent this, it is essential to adopt a preventive approach to ensure that their networks are secure.

Here are some security tips for your company.

Keep systems and licenses up to date

Make sure your software is always up to date so that security vulnerabilities in previous versions are addressed. You should also use the latest antivirus software.

Provide cybersecurity training

All employees need to have knowledge of cybersecurity. Mistakes caused by a lack of information—no matter how minor—can lead to major problems for the business. Therefore, everyone should know how to recognize the signs of potential attacks and take preventive action.

Use a two-factor authentication system

This measure will ensure that all members with an account or access to the system are verified representatives of the company. In addition, it is important to encourage employees to use long, complex passwords.

Investing in a reliable cybersecurity system

A company that does not invest in security technologies can fall victim to cyberattacks at any time. It is important to hire an external security team to help monitor networks and systems, as well as to purchase a cyberattack protection insurance.

Why Should You Purchase Cyber Risk Insurance?

Today, cybersecurity is a concern for companies in all industries. That is why investing in preventive measures, such as a protected against cyberattacks, is an urgent and wise decision.

EXS Seguros’ Cyber Risk insurance can help minimize your company’s vulnerability to these attacks. With Cyber Risk insurance, you have access to a wide range of coverage options, including:

• dispatching forensic experts to identify the source of the security breach and resolve the issue;
• legal advice;
• public relations consulting to assist with external communications;
• financial costs and data protection regulations.

To learn more about our solution, request a Free insurance quote. Enter your information into the simulator, and our expert advisors will prepare a personalized quote based on an analysis of the offers from the 26 most competitive insurance companies in Portugal.

Don't leave your company vulnerable to cyberattacks. Invest in preventive measures and protect your business with Cyber Risk insurance from EXS Insurance.