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What Are Potential Repercussions of MSP Cyberattacks?

In its last year’s report, FDD’s Center on Cyber and Technology Innovation (CCTI) compared economic losses from cyberattacks on just one MSP supplier with those from hurricane Sandy. The losses from cyberattacks were 17% higher!

Cyberattacks pose a threat not only to small businesses, but also to national infrastructure as well as US governmental agencies.

An example of such an attack in 2021 is malware integration into MSP provider infrastructure that used VSA Kaseya local software.

Experts believe that hackers use a phishing scheme to penetrate the provider’s network, thus gaining access to clients and remaining unnoticed for extended periods of time. Hundreds of businesses nationwide may become victims of the phishing software threatening operation of various industries and critical infrastructure facilities. This will lead to about $80 bln in losses.

Underestimating such risks is unacceptable, which is why it is necessary to take measures, including changes in federal law. One of the most important additions must be a law enforcing notification about cyberattacks on companies and regulating cybersecurity measures for small, medium and big businesses.

Certain work in the field is already being done. Thus, a draft law by senators Mark Warner and Marco Rubio suggests that all critical infrastructure owners and contractors must inform federal authorities about cyberattacks within 24 hours since the moment of such violation. Currently these reports are voluntary and sent to state authorities.

US Congress is also working on requirements to private companies obliging them to notify about cybersecurity breaches in their networks that may pose threat to federal structures.

CCTI recommends:

· To include cybersecurity report requirements into Sarbanes-Oxley act for all public companies.

· Cybersecurity reports to include an estimate of economic losses.

· To create a cybersecurity manual for small and medium businesses.

About Version 2 Limited
Version 2 Limited is one of the most dynamic IT companies in Asia. The company develops and distributes IT products for Internet and IP-based networks, including communication systems, Internet software, security, network, and media products. Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 Limited offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About SafeDNS
SafeDNS breathes to make the internet safer for people all over the world with solutions ranging from AI & ML-powered web filtering, cybersecurity to threat intelligence. Moreover, we strive to create the next generation of safer and more affordable web filtering products. Endlessly working to improve our users’ online protection, SafeDNS has also launched an innovative system powered by continuous machine learning and user behavior analytics to detect botnets and malicious websites.