Nov 17, 2020
Norwalk, CT — November 17, 2020 — 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.
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:
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:
“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.
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.
Shoba V. Lemoine