In 2024, the prevalence of cyber-attacks increased by 75% from the previous year – highlighting the necessity of strong security measures to protect data, businesses, and customers. If this trend continues into next year, running a business will be more dangerous than ever before. With the average cost of data breaches also steadily increasing, it is essential to examine past attacks so that you can learn how to prevent them in future.
Major Cyber Attacks in 2024
To protect your business, you first need to understand what happened in past cases. By breaking down what caused previous attacks, you will be more equipped to avoid falling victim yourself. Here are some examples:
1. LoanDepot Ransomware Attack:
In January 2024, LoanDepot, one of America’s largest retail mortgage lenders, suffered a significant ransomware attack. The breach forced the company to take some systems offline, temporarily preventing customers from making mortgage payments. This incident ultimately cost LoanDepot an estimated $26.9 million.
2. Microsoft Corporate Systems Breach:
Also in January, Microsoft detected a nation-state attack on its corporate systems. The threat actor, identified as Midnight Blizzard, infiltrated their networks using password spraying and phishing tactics. While Microsoft has not been open about the total cost incurred, it can be inferred that the potential downtime, response procedures, and lost consumer trust likely cost millions of dollars.
3. Krispy Kreme IT Systems Breach:
In December 2024, Krispy Kreme reported a cyber-attack that significantly impacted its business operations, particularly disrupting online ordering in parts of the U.S. They quickly warned that the major disruption to sales and fees paid to cybersecurity experts would likely have “a material impact” on their financial stability, but failed to give a hard number. This situation also caused their stock to drop by 2%, inflicting further financial hardships.
The Cost of Data Breaches in 2024
The financial repercussions of a cyber-attack are substantial. In 2024, the average cost of a breach rose to $4.45 million – a substantial increase from 2023. While larger organizations such as the ones listed above may be able to afford losing this amount (albeit with severe consequences for their quarterly profits), the true risk lies in small and medium-sized businesses, or SMBs. With much more limited resources, these companies are unlikely to survive such losses. This makes it critical to address your cybersecurity posture heading into 2025.
Lessons Learned and Preventative Measures
The cyber threats of 2024 underscore the critical need for robust cybersecurity strategies. To mitigate the risk of future breaches, you should consider the following measures:
1. Implement Advanced Security Solutions:
Security solutions such as AI-driven threat detection can significantly reduce the time needed to detect and respond to threats, thereby lowering costs associated with downtime.
2. Conduct Regular Security Audits and Risk Assessments:
Routine evaluations of security protocols can help identify vulnerabilities and ensure compliance with industry standards, reducing the likelihood of successful cyber-attacks.
3. Improve Employee Training and Awareness:
Educating employees about cybersecurity best practices, such as recognizing phishing attempts and following secure data handling procedures, can prevent breaches caused by human error.
4. Develop and Test Incident Response Plans:
Having a well-defined and regularly tested incident response plan enables your business to respond swiftly and effectively to cyber incidents, minimizing damage and recovery time.
5. Invest in Data Encryption and Access Controls:
Protecting sensitive data through encryption and implementing strict access controls can prevent unauthorized access and reduce the impact of potential breaches.
Stronger Data Security to Prevent Costly Data Breaches
The cyber-attacks seen in 2024 serve as a powerful reminder of the substantial financial consequences a data breach can bring. By learning from the past and proactively strengthening their own security measures, you can better position your business to prevent cyber-attacks and prevent financial losses.
Soaring Towers’ security experts provide a variety of tailored data protection solutions, to make it as difficult as possible for threat actors to breach your company. We understand that your data may as well be your bank account – so we treat it with the same amount of care. Learn more about how we can secure your data.
