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The True Cost of a DDoS Attack

Distributed denial-of-service (DDoS) attacks are now one of the most prevalent and disruptive cybersecurity threats facing businesses of all sizes. Last year saw a 16% increase in DDoS attacks, and the average cost of a DDoS attack now averages $6,000 per minute.

These malicious attacks, orchestrated by cyber criminals, aim to overwhelm a target’s servers or network infrastructure with a flood of illegitimate traffic, rendering their online services inaccessible to legitimate users. 

While the immediate impact of a DDoS attack may be evident in the form of website downtime or service disruption, the true cost extends far beyond the surface level or loss of revenue, even though, yes, loss of revenue is certainly part of the cost and number one on our list.

The problem is that most companies only consider revenue losses when picking up the mess in the aftermath of an attack, when in fact a lot more damage has been done outside of just revenue. 

Let’s take a deeper look into the consequences and bottom-line effects of DDoS attacks on businesses.

1. Loss of Revenue

Perhaps the most obvious and recognized impact of a DDoS attack is the loss of revenue resulting from disrupted online services or e-commerce transactions. During an attack, businesses may experience downtime, leading to missed sales opportunities, reduced customer engagement, and tarnished brand reputation (see #2). Research suggests that the average cost of a DDoS attack for businesses can range from thousands to hundreds of thousands of dollars per hour, depending on the industry and scale of the attack.

2. Damage to Brand Reputation

DDoS attacks can severely damage a company’s brand reputation and erode customer trust and loyalty, which will ultimately cause long-term damage to a company’s bottom line that extends far beyond the duration of the DDoS attack. 

Customers may perceive prolonged service disruptions as a sign of incompetence or negligence on the part of the business, leading to customer churn and negative word-of-mouth publicity. Rebuilding trust and repairing brand reputation in the aftermath of a DDoS attack can be a challenging and time-consuming process, impacting long-term profitability and competitiveness. PR firms cost a lot of money, especially when you are in a time of crisis and in urgent need of their services. 

3. Operational Disruption

Beyond financial losses, DDoS attacks can disrupt critical business operations, including communication systems, supply chain management, and employee productivity. IT teams are often forced to divert resources and manpower to mitigate the attack, leading to increased operational costs and decreased efficiency in other areas of the business. Extended downtime can also result in missed deadlines, delayed projects, and contractual penalties, further exacerbating the impact on business operations.

4. Legal and Regulatory Ramifications

DDoS attacks may expose businesses to legal and regulatory liabilities, particularly if sensitive customer data is compromised or if the attack violates industry-specific compliance standards (e.g., GDPR, HIPAA). Organizations may face lawsuits, fines, or regulatory sanctions for failing to protect customer data or maintain adequate cybersecurity measures. Compliance failures and data breaches resulting from DDoS attacks can also tarnish a company’s reputation and undermine investor confidence, leading to long-term financial repercussions.

5. Mitigation and Recovery Costs

Finally, responding to and mitigating a DDoS attack requires significant investments in cybersecurity technologies, personnel training, and incident response capabilities. Businesses may incur expenses related to hiring cybersecurity experts, deploying DDoS mitigation solutions, and implementing resilience measures to prevent future attacks. Additionally, the costs associated with restoring services, conducting forensic investigations, and implementing post-attack remediation efforts can further strain financial resources.

Conclusion

The true cost of DDoS attacks extends far beyond immediate financial losses to encompass damage to brand reputation, operational disruption, diversion of key internal resources, legal liabilities, and mitigation expenses. As businesses increasingly rely on digital infrastructure to drive revenue and customer engagement, the threat of DDoS attacks underscores the importance of investing in robust cybersecurity measures and proactive risk mitigation strategies.

The best way to avoid the costs of a DDoS attack? Make sure you’re totally prepared and always one step ahead of the attackers. 

How to do that? Use a DDoS protection service like Corero. Learn more about why attackers don’t stand a chance against Corero’s flexible DDoS protection.