What to Do If Your Business Gets Hacked: Immediate Steps for Cyberattack Response

Cyberattacks are an ever-present threat to businesses of all sizes, yet many still lack an effective plan of action to deal with them. When (not if) your company falls victim to a cyber incident, it is crucial to act swiftly and effectively to minimize damage and prevent further attacks.

Following a cyber incident, you can take immediate action steps to ensure your business responds effectively and recovers efficiently.

Signs You’ve Been Hacked

Detecting a data breach early is crucial to minimizing the damage it can cause.

Obvious signs of a breach include:

• The appearance of ransomware messages or fake antivirus alerts on your company’s browsers.
• Internet searches that are redirected.
• Receiving frequent, random pop-ups and rogue mouse pointers.
• Difficulty logging into accounts or receiving password reset emails you didn’t initiate.
• Receiving emails or messages you didn’t send or hearing from contacts they received a message from you.
• Your computer or phone running slower than usual, freezing, or crashing.

More serious indicators of an incident include unusual network traffic patterns, a surge in requests for the same file, geographical irregularities, and unauthorized database extractions.

Unfortunately, relying solely on anti-malware software is insufficient to keep your company safe. Employee education and proactive security measures, such as system monitoring and network traffic detection, are critical.

What Happens When a Company Gets Hacked?

A cybersecurity incident can have a devastating impact on a business, affecting multiple areas of operations. One of the most significant consequences of a data breach is unplanned downtime, which can bring operations to a grinding halt. The longer it lasts, the more time and money it will cost the business. In some cases, a cybercriminal may even aim to cripple a business’s operations and hold it for ransom.

Additional effects of a breach include:

• Financial Loss: A data breach can result in significant financial losses, both in terms of immediate expenses related to recovery and remediation, and long-term costs resulting from lost business opportunities and legal liabilities.
• Regulatory Non-Compliance: Depending on the industry and location, businesses may be subject to various data protection regulations and compliance requirements. A data breach can result in non-compliance penalties and regulatory fines.
• Intellectual Property Theft: Cybercriminals may target a business's intellectual property, such as trade secrets, patents, and proprietary information. Intellectual property theft can have severe long-term consequences, including damage to the business's competitive advantage.

Even after recovery, a cyberattack can have long-lasting effects on a business’s reputation and trust.

Immediate Action Steps for Operational Leaders

1. Assemble Your Incident Response Team

Proper planning is the key to knowing how to react when the worst happens. An incident response team will be your first responders when dealing with your business’s unique security breach. If an internal team is unavailable, engage external cybersecurity professionals right away.

An effective incident response plan can help organizations save significantly on the cost of a breach - paying up to 58% less than those without a plan.

2. Assess the Impact

Determine the nature of the attack, including:

• Identifying the type of cyberattack (e.g., ransomware, phishing).
• Ascertaining which data and systems were affected.
• Evaluating the potential impact on operations and stakeholders.

Next, develop a comprehensive recovery plan, including restoring systems, data, and operations to normal. Make sure to address all current vulnerabilities to prevent future breaches.

3. Notify Relevant Parties

Compliance with legal and regulatory requirements is extremely critical. This may include:

• Reporting the incident to appropriate authorities, like the FBI's Internet Crime Complaint Center (IC3).
• Informing affected customers, partners, and employees as necessary.
• Consulting legal counsel to navigate disclosure obligations.

4. Begin Recovery and Remediation

Work towards restoring normal operations, including:

• Removing malware and secure vulnerabilities.
• Restoring data from clean backups.
• Monitoring systems for any signs of lingering threats.

Post-incident, take proactive measures to bolster your organization's defenses:

• Review and Update Security Policies: Ensure that protocols are current and comprehensive.
• Conduct Employee Training: Educate staff on recognizing and responding to cyber threats.
• Implement Advanced Security Tools: Utilize intrusion detection systems and endpoint protection.
• Regularly Test Incident Response Plans: Conduct drills to assess readiness and identify areas for improvement.

Building a Culture of Security

It’s important to remember that cybersecurity extends beyond IT departments. Top-performing organizations embed cybersecurity into their core values, fostering a proactive approach to potential threats.

• Executive Leadership: Drive cybersecurity initiatives from the top, ensuring alignment with business objectives.
• Employee Engagement: Promote awareness and responsibility across all levels of the organization.
• Continuous Improvement: Regularly assess and update security protocols to adapt to evolving threats.

Cybersecurity in Action: Industry Examples

Strengthening Cybersecurity in a Municipal Government

A mid-sized city government was hit by a ransomware attack that shut down payroll, public records, and emergency dispatch systems. Outdated software and a lack of multi-factor authentication were exploited.

Impact:

• City services disrupted
• Sensitive data compromised
• Significant recovery costs and reputational damage

Action Steps:

• Isolated systems and engaged cybersecurity experts
• Restored data from backups and notified authorities
• Implemented MFA, updated software, and trained staff
• Developed a formal incident response plan

Key Takeaway:

Proactive cybersecurity measures and clear response plans are critical to protecting government entities from disruptive and costly cyber incidents.

Managing the Cost of a Healthcare Data Breach

A regional hospital faced a data breach affecting 50,000 patient records, resulting in regulatory fines, legal fees, and reputational damage.

Action Taken:

• Conducted a financial impact assessment
• Filed claims through cyber insurance
• Engaged legal counsel for compliance
• Communicated transparently with stakeholders

Key Takeaway:

A proactive breach response plan with financial and legal strategies is essential to minimize the impact of healthcare data breaches.

Strengthening Safeguards Compliance at a Dealership

A mid-sized auto dealership struggled to meet the updated FTC Safeguards Rule requirements, risking non-compliance and data exposure.

Action Taken:

• Appointed a qualified individual to manage the security program
• Conducted a risk assessment
• Implemented multi-factor authentication and data encryption
• Trained staff on cybersecurity best practices

Key Takeaway:

Dealerships can meet Safeguards Rule requirements by assigning ownership, assessing risks, securing systems, and educating staff.

Strengthening Cybersecurity in a Nonprofit Organization

A mid-sized nonprofit, heavily reliant on donor contributions and volunteer support, lacked formal cybersecurity policies and permitted staff to use personal devices for work. This led to a phishing attack that compromised sensitive donor information.

Action Taken:

• Conducted a comprehensive risk assessment
• Established formal cybersecurity policies and incident response procedures
• Implemented multi-factor authentication and restricted use of unsecured personal devices
• Provided staff training on cybersecurity awareness

Key Takeaway:

Nonprofits can mitigate cyber risks by proactively implementing structured cybersecurity measures and fostering a culture of security.

Key Takeaways for Business Leaders

• Preparedness is Crucial: A well-defined incident response plan enables swift action during a cyber crisis.
• Containment Limits Damage: Immediate isolation of affected systems prevents further spread of the attack.
• Transparent Communication Builds Trust: Keeping stakeholders informed helps maintain confidence and complies with legal obligations.
• Continuous Improvement Enhances Resilience: Learning from incidents and updating security measures fortifies your organization's defenses.

Taking immediate steps in response to a cyberattack and fostering a culture of security can safeguard your business from future threats. Remember, protection is about risk management, not risk avoidance. Let us help you protect what you’ve built.