On New Year’s Day, Los Angeles Valley College became the victim of a ransomware data security breach that led them to pay $28K in ransom to free hostage data. The breach took down the campus’ website and email system.
According to the campus newspaper, the hackers demanded to be paid in BitCoin.
The computers were frozen for 72 hours before the college administrators finally gave in and made the payment the day after school had reopened. Still, even after receiving the decryption key, it will take them weeks to unlock every campus computer.
At the moment, the total scope of the damages is still unknown.
The Global Risks 2015 report, published by World Economic Forum, estimates that 90% of companies on a global level recognise they are insufficiently prepared to protect themselves against cyberattacks.
There are various forms of damage a cyberattack might have on its victim. According to White & Case, a law firm, here is a list of the various forms of damages such attacks can cause:
– Public relations problems.
– Commercial losses.
– Disruption of operations.
– Possibility of extortion.
– Negligence claims.
– Loss of trust among consumers and suppliers.
– Exposure of the organisation to regulatory action.
Lloyd’s, a British insurance company, estimated the global cybercrime costs, including direct damage as well as post-attack disruption to business, to be $400 billion in 2015.
Juniper Networks believes that by 2019, these costs will have quadrupled to $2.1 trillion.