5 Serious Repercussions of Targeted Cyberattacks on Business Leaders
Executives must make critical decisions to lead their businesses to success. However, a recent study reveals that companies lack the preparedness to fend off attacks that target their executives’ private lives.
Company executives play a pivotal role in steering the course of business operations and decision-making. Their positions grant them access to sensitive information, making them prime targets for cybercriminals seeking valuable data and financial gain. Attacks targeting company executives have become increasingly prevalent and sophisticated. These targeted cyberattacks don’t just harm the individuals – they harm the organization as well.
How are cybercriminals and hackers taking advantage of poor cyber hygiene by business leaders?
Tactics Used in Targeted Cyberattacks
1. Data Breaches and Intellectual Property Theft
Company executives often have access to sensitive information, including financial records, strategic plans, and intellectual property. Cyberattacks aimed at these high-ranking individuals can lead to data breaches, wherein critical data is exposed or stolen.
Cybercriminals may target executives to steal corporate intellectual property, trade secrets, and proprietary technology. When a company’s intellectual property ends up in the hands of a competitor, it can undermine its position in the market. It can also cause national security problems. For example, in 2022, a former Google employee and Chinese national, Linwei Ding, stole more than 500 files containing information on Google’s AI technology. Ding was also secretly simultaneously employed by two Chinese tech companies.
According to research by Blackcloak, 87% of executives have passwords that are currently available on the dark web. Since password reuse is common (60-70% of people do it, according to multiple studies), one of those passwords will likely provide access to corporate information.
Consequences of Cyberattacks Targeting Company Executives
2. Financial Fraud and Extortion
Attacks that target company executives sometimes involve financial fraud schemes. For instance, spear-phishing attacks may trick executives into initiating unauthorized fund transfers, resulting in significant economic losses for the organization. According to the 2024 edition of IBM’s annual Cost of a Data Breach Report, the average data breach cost in the US is around $9.36 million, while the average global total cost of a data breach amounts to $4.88 million.
Additionally, ransomware attacks have become a common tactic used against high-profile individuals. Cybercriminals encrypt critical data and demand hefty ransoms for its release. The cost of paying the ransom, coupled with business disruption during the incident, can inflict substantial financial harm on the targeted organization.
Verizon’s 2024 Data Breach Investigations Report said ransomware is a top threat in nearly all (92%) industries, and about a third of all breaches involved ransomware or extortion.
3. Insider Threats and Corporate Espionage
In some cases, cyberattacks on executives may involve insider threats, where disgruntled employees or insiders collude with external actors. This can lead to an erosion of employee trust and create a sense of fear and uncertainty in the workplace.
More than two-thirds (71%) of organizations feel vulnerable to insider threats, according to the 2024 Insider Threat Report from Cybersecurity Insiders and Gurucul. More than half of respondents experienced six or more insider attacks. The estimated cost of such attacks varies wildly – while a third of respondents said it costs between $100,000-$499,000, nearly half said the range was between $500,000 and $2 million.
Estimated Average Cost of Remediating an Insider Attack
Source: 2024 Insider Threat Report;
Cybersecurity Insiders and Gurucul
Consequences of Targeted Cyberattacks
1. Reputational Damage and Customer Trust Erosion
When company executives fall victim to cyberattacks, they can lose the trust and credibility of their customers, investors, and partners. A negative public perception of a business can result in potential customer churn, leading to declining customer retention rates.
ChatGPT is no stranger to data breaches. In 2023, sensitive personal and payment-related information of 1.2% of active ChatGPT Plus subscribers was compromised during a nine-hour timeframe. In February of 2024, users of the platform raised concerns that it was leaking conversations, and therefore sensitive data. This led to many companies placing internal bans on the use of ChatGPT.
As the public face of their company, executives bear a significant responsibility in preserving its reputation. Any association with a cyber incident can tarnish their personal reputation and that of the organization they represent. In one example, a CFO transferred €40m to an unknown bank account after receiving an email from the company’s headquarters. The company, Leoni AG, saw its share price plummet 7% after the incident was made public, and it was almost two years before the stock rebounded. The CFO was eventually fired.
2. Business Disruption and Operational Downtime
Cyberattacks that target executives can disrupt business operations and cause significant downtime. For instance, if an executive’s account is compromised, it may lead to unauthorized access to critical systems, hampering day-to-day activities.
Operational downtime can result in missed deadlines, reduced productivity, and lost revenue. Additionally, organizations may need to divert resources toward incident response and recovery, further straining their operational capabilities.
A global outage hit Microsoft Windows devices after it a faulty update for CrowdStrike’s Falcon Sensor was deployed in July 2024. Consequently, millions of Microsoft devices stopped working, shutting down airlines, train stations, hospitals, media outlets, and Fortune 500 companies around the world. Insurers have estimated that the overall cost to business will be in the billions. CrowdStrike also received an award at the 2024 DEFCON convention for the Most Epic Fail. Company president Michael Sentona faced the embarrassment head-on, saying “our goal is to protect people, and we got this wrong.”
3. Legal and Regulatory Consequences
Targeted cyberattacks can result in significant legal and regulatory consequences for the affected organization. Many jurisdictions have strict data protection laws that require businesses to safeguard sensitive information and report data breaches to regulatory authorities and affected individuals. Failure to comply with these regulations can lead to substantial fines and penalties, exacerbating the financial impact of a cyber incident. After an ex-employee downloaded financial information about Cash App customers in 2021, the company was sued for failing to install the appropriate security controls that could have prevented the incident. The company settled out of court in 2024, and must pay $15 million in class-action settlement payments that include reimbursement for out-of-pocket losses.
See More: The Cyber Risks Of Scaling: How To Secure Your Expanding Attack Surfaces
Takeaway
Cyberattacks that target company executives have far-reaching consequences that extend beyond the individual victims. As cyber threats evolve, organizations must prioritize cybersecurity and implement robust defense measures.
Training executives and employees in cybersecurity best practices, regularly updating security protocols, and conducting thorough risk assessments are crucial to safeguard against cyberattacks.
By investing in comprehensive cybersecurity strategies and fostering a culture of security awareness, businesses can mitigate the potential impacts of cyber incidents and protect their executives, employees, customers, and other valuable assets.
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