What is a major effect of ransomware on organizations?

A major effect of ransomware on organizations is data loss and operational disruption. Ransomware is a type of malicious software that encrypts an organization’s files, rendering them inaccessible until a ransom is paid. This essentially halts normal business operations and can lead to significant downtime, as critical data becomes unavailable to employees who need it to perform their tasks. Additionally, organizations may face financial losses due to the ransom payment itself, costs associated with recovery, and lost revenue during the downtime.

The impact extends beyond immediate data loss; it can lead to reputational damage, customer trust erosion, and potential legal consequences if sensitive information is compromised. The disruption affects not only IT systems but can ripple through the entire organization, impacting productivity and the ability to serve customers effectively. This underscores the importance of having robust cybersecurity measures in place to prevent such attacks and to ensure data recovery plans are established to mitigate the effects of ransomware incidents.