Ft Image Four Ways To Increase Cybersecurity And Safeguard Data

Worst-Case Scenario: Companies That Shut Down After Cyberattacks

Published: May 30, 2023
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Cyberattacks have the power to close companies that don’t have the resources to recover.

The frequency and costs of cyberattacks continue to grow, so cybersecurity experts urge business owners to shift their mindsets: It’s not a matter of if your company will be attacked, but when.

A cyberattack costs around $200,000 to recover on average, and over half of businesses end up closing within six months of an attack. This is because a cyberattack doesn’t just take money from the victims – it often results in a damaged reputation and lost customers, which leads to lost business and profits.

3 Examples of Companies Closing After Cyberattacks

It doesn’t matter if your company is large or small, you’re at risk of an attack. Here are just a few examples of companies that had to shut down operations.

  • After being in business for 157 years, Lincoln College closed after a ransomware attack “thwarted admissions activities and hindered access to all institutional data,” the college explained.
  • When cryptocurrency was introduced, hackers realized just how easy it is to steal. Many companies shut down after losing bitcoins to criminals. These companies include Mt Gox – who lost hundreds of thousands of dollars – and YouBit, a Korean exchange that lost almost a fifth of its clients’ holdings to hackers in 2017.
  • When attackers compromised a psychotherapy center, they went beyond the usual attack: The criminals directly blackmailed the patients (about 30,000 people), threatening to release their personal information and the notes their therapists took during appointments – unless the patients paid the criminals the ransom fee. The company claimed there was a security flaw in the IT systems that exposed every patient’s data to the hackers.

How to Protect Your Accounting Firm Against Cybercriminals and Hackers

While all businesses are subject to attacks, cybercriminals mostly target small and medium-sized firms. Hackers think they are easier to hack since they often lack the sophisticated cybersecurity programs larger businesses have. And unfortunately, reports show cybercriminals are right.

In a report from Inc. Magazine, Cisco, and the National Center for Middle Market that surveyed CEOs of SMBs, 62% said their firms either don’t have an updated cybersecurity strategy or any strategy at all. These companies are putting their businesses and clients at extreme risk.

Companies of all sizes and within all industries must have a cybersecurity program and leverage technology that can help keep their data safe, like a cloud-based document management system and client portal. You’ll want one that’s built with bank-level security that keeps hackers away from your data.

Let SmartVault manage document security for you. Schedule a demo today and join the 2,000,000 other people who use SmartVault to securely work online.