Cyberattacks: Real-World Risk & Disruption

A cyberattack can do more than disrupt your organization’s computer systems. The world has become increasingly dependent on the internet; at the same time, cyberattacks have become more sophisticated and damaging. As a result, cyberattacks can cause real-world disruption.

You Could Lose Access to Essential Information

Since most of your information is probably stored in online systems, what happens when you lose access to those system? Imagine the following scenarios:

You need to call an important client or vendor, but you don’t have the phone number or email address.
You need to provide an answer about last quarter’s numbers, but those numbers aren’t currently available.
You need to prepare for a high-stakes meeting, but you’ve lost your notes.

These examples show how losing access to key information stored on your computers can disrupt your daily operations.

Essential Equipment Might Not Work

Modern businesses are often reliant on computer systems and software. A ransomware attack can shut down many systems that are vital to daily business operations – from cash registers and scheduling programs to critical infrastructure and lifesaving equipment.

Here are just a few examples of how cyberattacks have impacted businesses in recent years:

According to the BBC, a supermarket chain with 800 stores in Sweden had to close around half its stores temporarily after its software supplier was hit with ransomware. The attack caused the payment system at tills and self-service checkout stations to stop working.
Bleeping Computer says METRO, an international wholesaler, experienced store payment issues after a ransomware attack. The company had to set up offline payments, and online orders were delayed.
According to Infosecurity, a cyberattack interfered with a Scandinavian hotel chain’s capability to check guests in or out or create new room keys, meaning staff had to escort guests to their rooms.

This sort of disruption sounds like a major inconvenience, but attacks on infrastructure can cause even more widespread disruption. A ransomware attack shut down the Colonial Pipeline’s operations for five days, leading to surging gas prices on the East Coast, and CNET warns the country’s infrastructure is vulnerable to future attacks of this nature.

When attacks target hospitals, lives can be at risk. Security Affairs says Common Spirit, a large hospital chain in the U.S., had to delay surgeries and patient care due to a ransomware attack. In addition, NBC says a mother is suing Springhill Medical Center in Alabama, alleging that the hospital failed to inform her that computers were down because of a cyberattack and that her infant received diminished care as a result, contributing to the infant’s death.

There Could Be Physical Damage

Imagine you have sensitive materials you need to keep at a specific temperature. If a cyberattack interferes with the necessary controls, physical damage could occur.

According to Wired, cyberattacks have caused physical damage in at least two separate incidents. The first involved a digital weapon used against a plant in Iran. The second involved a steel mill in Germany, where a cyberattack prevented a blast furnace from shutting down properly, resulting in massive damage.

Physical damage may also lead to more indirect, less dramatic results. For example, if your leak detection system is down because of a cyberattack, you might not notice a leak until it causes severe water damage. As more of our systems go online, issues like this become a growing risk.

Your Business Will Likely Experience Disruption

A cyberattack is never just about computers.

Dealing with the cyberattack will require resources. After an attack, you need to take steps to determine the extent of damage, comply with data breach notification laws, and restore your systems. This requires time and money that your organization could be using for other things. Nationwide found that many businesses greatly underestimate the time and costs involved in cyberattack recovery.
Cyberattacks can also harm your organization’s reputation. When clients learn that their data has been compromised due to an attack on your company, they’ll likely blame you for failing to safeguard their data. State data breach laws may require you to pay for credit monitoring for victims of the breach.
A cyberattack can hurt your bottom line. When you add together reputational damage and lost resources, this is unsurprising. The National Bureau of Economic Research says sales growth for large firms drops 3.4% on average after a cyberattack.

Making Cybersecurity a Priority

Cyberattacks are a serious threat – and business leaders should not underestimate the potential for damage. Strong cybersecurity measures are a necessity. Organizations should also make sure they have the right cyber insurance to help them respond to an attack. Do you have questions about your cyber risks and coverage? Contact BNC.