MSPs Report Ransomware is Still the #1 Malware Threat Affecting Businesses; Cost of Downtime Nearly Doubles Since 2019
November 17 2020 - 5:00AM
Business Wire
Remote Work and Cloud Computing During COVID-19
Contribute to Increase in Ransomware Attacks According to a New
Datto Report; Healthcare Industry Most Vulnerable During the
Pandemic
Datto Holding Corp. (“Datto”) (NYSE: MSP), the leading
global provider of cloud-based software and technology solutions
purpose-built for delivery by managed service providers (MSPs),
today unveiled its fifth annual Global State of the Channel
Ransomware Report. More than 1,000 MSPs weighed in on the impact
COVID-19 has had on the security posture of small and medium
businesses (SMBs), along with other notable trends driving
ransomware breaches.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20201117005156/en/
The survey found that ransomware still remains the most common
cyber threat to SMBs, with 60% of MSPs reporting that their SMB
clients have been hit as of Q3 2020. The impact of such attacks
keeps growing: the average cost of downtime is now 94% greater than
in 2019, and nearly six times higher than it was in 2018 increasing
from $46,800 to $274,200 over the past two years, according to
Datto’s research. Phishing, poor user practices, and lack of end
user security training continue to be the main causes of successful
ransomware attacks.
The survey also revealed the following:
- MSPs a target: 95% of MSPs state their own businesses
are more at risk. Likely due to increasing sophistication and
complexity of ransomware attacks, almost half (46%) of MSPs now
partner with specialized Managed Security Service Providers (MSSPs)
for IT security assistance – to protect both their clients and
their own businesses.
- SMBs spend more on security: 50% of MSPs said their
clients had increased their budgets for IT security in 2020,
perhaps indicating awareness of the ransomware threat is
growing.
- Average cost of downtime continues to overshadow actual
ransom amount: Downtime costs related to ransomware are now
nearly 50X greater than the ransom requested.
- Business continuity and disaster recovery (BCDR) remains the
number one solution for combating ransomware, with 91% of MSPs
reporting that clients with BCDR solutions in place are less likely
to experience significant downtime during an attack. Employee
training and endpoint detection and response platforms ranked
second and third in tackling ransomware.
The impact of COVID-19 on ransomware and the cost of security
disruptions
During the pandemic, the move to remote working and the
accelerated adoption of cloud applications have increased
security risks for businesses. More than half (59%) of MSPs said
remote work due to COVID-19 resulted in increased ransomware
attacks, and 52% of MSPs reported that shifting client workloads to
the cloud increased security vulnerabilities. As a result, SMBs
need to take precautions to avoid the costly disruptions that occur
in the aftermath of an attack. The survey also determined that
healthcare was the most vulnerable industry during the pandemic
(59%).
“Now more than ever organizations need to be vigilant in their
approach to cybersecurity, especially in the healthcare industry as
it’s managing and handling the most sensitive (and for criminals
the most valuable) private data,” said Travis Lass, President of
XLCON, a Phoenix, AZ based MSP. “The majority of our clients are
small healthcare clinics, with no in-house IT. As ransomware
attacks continue to increase, it’s critical we do everything we can
to support them by arming them with best-in-class technology that
will fend off malicious attackers looking to take advantage of the
already fragile state of the healthcare industry.”
The survey revealed the top three ways ransomware is attacking
entities:
- Phishing emails. 54% of MSPs report these as the most
successful ransomware attack vector. The social engineering
tactics used to deceive victims have become very sophisticated,
making it vital for SMBs to offer extensive and consistent end user
security education that goes beyond the basics of identifying
phishing attacks.
- Software-as-a-Service (SaaS) applications. Nearly one in
four MSPs reported ransomware attacks on clients’ SaaS
applications, with Microsoft being hit the hardest at
64%. These attacks mean that SMBs must consider the
vulnerability of their cloud applications when planning their IT
security measures and budgets.
- Windows endpoint systems applications. These are the most
targeted by hackers, with 91% of ransomware attacks
targeting Windows PCs this year.
“The COVID-19 pandemic has accelerated the need for stronger
security measures as remote working and cloud applications increase
in prevalence,” remarked Ryan Weeks, Chief Information Security
Officer at Datto. “Reducing the risk of cyberattacks requires a
multi-layered approach rather than a single product – awareness,
education, expertise, and purpose-built solutions all play a key
role. The survey highlights how MSPs are taking the extra step to
partner with MSSPs that can offer more security-focused experience,
along with a more widespread use of security measures like SSO and
2FA – these are critical strategies businesses and municipalities
need to adopt to protect themselves from cyber threats now and in
the future.”
For more information, download Datto’s State of the Channel
Ransomware Report.
About Datto
As the world’s leading provider of cloud-based software and
technology solutions purpose-built for delivery by managed service
providers (MSPs), Datto believes there is no limit to what small
and medium businesses can achieve with the right technology. Datto
offers Unified Continuity, Networking, and Business Management
solutions and has created a unique ecosystem of MSP partners. These
partners provide Datto solutions to over one million businesses
across the globe. Since its founding in 2007, Datto has won awards
for its rapid growth, product excellence, superior technical
support, and for fostering an outstanding workplace. With
headquarters in Norwalk, Connecticut, Datto has global offices in
the United Kingdom, Netherlands, Denmark, Germany, Canada,
Australia, China, and Singapore. Learn more at www.datto.com.
MSP-C
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201117005156/en/
Media: Shoba V. Lemoine communications@datto.com
Datto (NYSE:MSP)
Historical Stock Chart
From Jul 2024 to Aug 2024
Datto (NYSE:MSP)
Historical Stock Chart
From Aug 2023 to Aug 2024