Ransomware is a growing headache for large and small companies across the U.S. Unfortunately, Connecticut may have a bigger ransomware problem than most of the other states.
Cyber criminals employ different techniques to get what they want. They use business email compromise to steal money. They unleash Distributed Denial of Service attacks to shut down websites. Worst of all, they encrypt data to incapacitate IT systems so they can extort ransomware payments.
Ransomware is especially destructive and costly. It can close hospitals overnight and bankrupt companies in weeks. Last year two hospitals in Connecticut suffered ransomware attacks. Their information technology systems were taken down and soon the hospitals were on life support. Emergency Rooms were shuttered and electronic payment systems frozen.
Highest Rate of Healthcare Breaches
Our state has had the highest incidence of health industry data breaches in the country. A recent survey reported that between 2009 and 2024 there were 115 data breaches impacting some of Connecticut’s 7,680 health care organizations. The rate at which our health care organizations have been breached is 71% higher than the average for other states.
Unfortunately, many of the industries favored by ransomware criminals are prominent in our state. In addition to healthcare, ransomware has also targeted financial institutions, technology companies, law firms, consumer goods companies, Connecticut public school systems, and even small non-profit organizations.
Connecticut’s manufacturing companies are increasingly attracting the attention of ransomware criminals. Since its founding, Connecticut has had a rich tradition in manufacturing. From Eli Whitney (cotton gin) to Samuel Colt (firearms) to Charles Goodyear (vulcanized rubber) the Nutmeg State has provided a favorable environment for innovative manufacturing companies.
More recently large defense contractors such as Electric Boat (submarines), Pratt and Whitney (jet engines) and Sikorsky (helicopters) have based their businesses locally. Hundreds of smaller manufacturers are also located in Connecticut to supply the many parts needed by the bigger defense companies.
Manufacturers Are A Major Target
Manufacturing companies are a major target for ransomware criminals. Many have older production systems that are vulnerable. They were designed without modern cybersecurity protections. Small and mid-sized manufacturers may not have the financial resources needed to replace legacy systems. These companies are also reluctant to interrupt operations to bring a new production system online.
A cyber attack on a manufacturing company can threaten the company’s existence. When the data required by critical production and supply chain systems is encrypted, the company’s ability to produce and ship products is abruptly halted. Small and mid-sized companies can be forced to close after a week or two if the production line is not brought back online quickly. No wonder manufacturers are inclined to pay the ransom. Even a small company might decide it is better to pay a big ransom fee rather than close the shop.
What can be done to mitigate the risk? Connecticut organizations need to consider how big a problem a ransomware attack would be. What would the effect be if data were suddenly encrypted? For IT systems that are critical, a comprehensive backup and recovery plan is needed.
Local Managed Service Providers (MSPs) with cybersecurity expertise can develop plans and procedures to make sure a ransomware attack will not become a disaster that cripples or destroys your business. An important part of a disaster recovery plan includes making and securing copies of the data you cannot afford to lose. Then if you are the victim of a ransomware attack you can recover a clean earlier version of your data to quickly bring your systems back online.
Multiple backup copies of this data should be stored at various locations and on different storage media. Though backup data can be stored in the cloud, risk is further reduced by storing an additional copy at an alternate site such as the CAPS data center in Shelton.
