Cyber Extortion: What Is It and What’s the Risk to Your Business?

As we head into the festive season, cyber scams are on the rise. In fact, they increase by over 40% during this time of year. One of the most alarming threats businesses face today is cyber extortion-and it’s something that should be on your radar.

What is cyber extortion?

At its core, cyber extortion is a type of cybercrime where criminals threaten to harm your business by compromising its data or digital assets unless a ransom is paid. Often, this involves ransomware-malicious software that locks your data and makes it inaccessible until you meet the criminal’s demands. But in some cases, cyber criminals take it a step further: they steal your data and threaten to release it on dark web leak sites if you don’t pay up. This is known as double extortion.

The statistics surrounding cyber extortion are staggering. According to a 2024 report, the number of victims of these scams has skyrocketed by 77% in just one year. Small businesses, in particular, are at risk. They are four times more likely to be targeted than larger organisations. Given that smaller businesses typically have fewer resources to defend against cyber threats, this rise is a growing concern.

Why should you be worried?

In the first quarter of this year alone, 1,046 businesses fell victim to double extortion. While that number might seem low, many cases go unreported, hidden in the shadows of what experts call the “dark number.” The truth is, any business-no matter the size or industry-could become a target. But some sectors are hit harder than others. Manufacturing, professional services, wholesale trade, and healthcare are among the top industries suffering from these attacks.

Even more concerning, cyber criminals are increasingly targeting regions experiencing strong economic growth, and the UK is seeing a staggering 96% increase in cyber extortion attacks.

How can your business defend against cyber extortion?

Back up your data

Ensure you have a solid backup strategy in place. Keep backups offline or offsite and test your recovery process regularly.

Keep software up to date

Ensure that all your devices are running the latest software, especially those connected to the internet. Cyber criminals often exploit outdated systems, so patching vulnerabilities is crucial.

Implement Multi-Factor Authentication (MFA)

Add an extra layer of security by using MFA. This requires additional verification (like a code sent to a separate device) to access sensitive data. Limit user access to only what’s necessary for their role.

Patch and vulnerability management

Regularly update your systems to fix known security vulnerabilities. Criminals frequently target unpatched weaknesses, so staying on top of updates can make all the difference.

Don’t wait until it’s too late.

Understanding the risks of cyber extortion and taking proactive steps to protect your business is key to avoiding a disaster. With cyber threats rising, especially as we approach the festive season, now’s the time to take action.

If you’re concerned about the rising threat of cyber extortion or want to make sure your business is prepared, we’re here to help. At Inflection Point, we can guide you through the right steps to ensure your business is secure, so you can focus on what really matters-growing your business.

Let’s talk. We’re here to help keep your business safe from these growing threats.