Building a Digital Defense: Essential Cybersecurity Measures for Homebuilders
Homebuilders, both large and small, are increasingly facing the threat of cyberattacks. In an industry traditionally focused on physical risks, the digital threat posed by ransomware is escalating rapidly. Many large public builders have already fallen victim to these attacks, though they may not publicly acknowledge it. This raises an important question for private builders with fewer resources: How can you protect yourself?
The Growing Cyber Threat
In 2023, 60% of small to medium-sized businesses were targets of cyberattacks. For those hit by ransomware, the stakes are even higher, with a 60% chance of going out of business within six months. When you combine these probabilities, there is a 36% chance your business might not survive into 2025 due to a ransomware attack. The reasons for this dire outcome are manifold. Small businesses, including those in homebuilding, often lack the robust IT infrastructure and stringent cybersecurity practices of larger corporations, making them prime targets for cybercriminals. Ransomware, which encrypts your data until a ransom is paid, can create significant operational disruptions.
The High Cost of Ransomware
Recovering from a ransomware attack can be prohibitively expensive for small businesses, with costs ranging from $84,000 to $148,000. This figure includes ransom payments (if made), as well as the costs associated with downtime, lost sales, and system reconstruction. With businesses experiencing an average of 16 to 23 days of system downtime after an attack, the financial implications can be severe. Consider whether your vendors would continue to work with you if you couldn't pay them for up to three weeks.
The Crucial Role of Backups and Cyber Insurance
To combat these digital threats, regular backups and comprehensive cyber insurance are essential. Backups can mitigate the impact of data loss by ensuring that your data can be restored quickly, thereby reducing downtime and operational disruption. Meanwhile, cyber insurance provides a financial safety net to help cover the substantial costs associated with recovery from a cyberattack.
Implementing and Testing Backups
While many companies maintain backups, not all regularly test them. It's not enough to assume backups are secure; regular testing is crucial to confirm their integrity and effectiveness. This includes checking for data corruption, ensuring that backups are complete, and verifying that backup software functions correctly. For businesses relying on on-premise software databases, having a robust backup and recovery strategy is vital. This should include regular testing to ensure backups are not only present but fully operational and effective.
Keywords to Keep in Mind
If you're exploring further or discussing this topic with your financial team, remember to focus on these key terms: cyberattacks, ransomware, small to medium-sized businesses (SMBs), cyber liability policy, IT infrastructure, cybersecurity practices, data encryption, operational disruption, financial strain, recovery costs, data backups, backup testing, on-premise software databases, cyber insurance, business continuity, and risk management
Conclusion
For homebuilders utilizing on-premise software databases, adopting a disciplined approach to backups—both in their creation and regular testing—is crucial. In the face of rising ransomware attacks and their potentially devastating consequences, this practice is not just advisable; it's essential for business continuity and protection against sophisticated cyber threats. With only 28% of small businesses currently carrying cyber insurance, it's time to consider how well protected your business is and take the necessary steps to fortify your defenses. For personalized cybersecurity guidance and expert insights, don't hesitate to contact us and arrange a complimentary consultation today! Our team is dedicated to safeguarding your digital assets as robustly as the structures you construct.