Ransomware is the greatest threat faced by managed service providers (MSPs) focusing on the small and medium-size business market, according to the fifth annual Global State of the Channel Ransomware Report published by Norwalk-headquartered Datto.
In a survey of more than 1,000 MSPs, Datto found ransomware was the most prevalent cybersecurity threat, with 60% of respondents reporting their clients were hit by ransomware attacks in the third quarter of this year.
The average cost of downtime due to ransomware assaults is 94% greater than in 2019 and nearly six times higher than it was in 2018, a cost increase from $46,800 to $274,200 over the past two years.
Datto’s research determined that phishing, poor user practices and the absence of end-user security training were the main causes of successful ransomware attacks. Furthermore, 95% of the MSPs admitted that their own businesses are more at risk from ransomware attacks, with 46% of MSPs now partnering with specialized managed security service providers for IT security assistance to protect both themselves and their clients.
As a result of the rise in ransomware attacks and other cyberthreats, half of the MSPs said their clients have increased their budgets for IT security this year. Still, ransomware is having a cost impact on these clients: the average cost of downtime related to ransomware are now nearly 50 times greater than the ransom requested.
And the Covid-19 pandemic has made things worse. Datto said 59% of MSPs reported increased ransomware attacks due to a pandemic-fueled remote workforce, with 52% of MSPs stating that shifting client workloads to the cloud increased security vulnerabilities. The pandemic also resulted in health care becoming the most vulnerable industry this year for ransomware attacks, Datto stated.
“Reducing the risk of cyberattacks requires a multilayered approach rather than a single product – awareness, education, expertise and purpose-built solutions all play a key role,” said Ryan Weeks, chief information security officer at Datto.
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