The global expansion of the technology ecosystem has led to a significant rise in cybersecurity challenges. India, too, faces these challenges, underscoring the crucial need for robust measures and collaborative initiatives to ensure the safety, integrity, and continual growth of our cyber ecosystem.
Recent findings from the Data Security Council of India (DSCI), an active consortium of cybersecurity ecosystem participants, reveal a projected demand for 64,000 cybersecurity professionals in India. The DSCI anticipates a substantial increase in the demand for cybersecurity products and services, expecting the workforce to grow from 1.10 lakh employees in 2019 to over 10 lakh employees by 2025-26. Despite the rising demand and salaries in the cybersecurity industry, a notable concern is the projected 30% demand-supply gap by the end of 2023.
The alarming gap in the cybersecurity workforce isn’t confined to national borders but spans globally, reaching an impressive 4.7 million by 2023. Despite this, the workforce gap has notably widened, experiencing a substantial 26.2% year-on-year increase in 2022. This underscores the pressing need to urgently address and narrow the expanding imbalance within the cybersecurity workforce.
Ransomware attacks have become increasingly common. When asked why they predominantly affect SME and MSME sectors, Kaushik Ray, COO of WhizHack Technologies, explained, “The SME and MSME sector, lacking regulation, face heightened cyber threats. Sophos’ report reveals that 83% of targeted organizations have under 1,000 employees, with missing logs in 42% of attacks. Despite holding valuable data, limited resources and a false sense of security make them vulnerable. The improved cybersecurity infrastructure is evident in a 44% decrease in ransomware ‘dwell time.’ However, with the rising sophistication of attacks, SMEs, adopting technology at just 36%-37%, remain at risk. A crucial shift in mindset and substantial technology adoption is necessary for robust cyber defense.”
With each passing day, hackers are advancing their techniques in tandem with technology. It raises the question of whether there’s a standard module or if hackers employ diverse techniques to target businesses. Ray said, “These attacks evolve constantly, with hackers keenly aware of defense levels. They possess a well-developed playbook to navigate defenses. SMEs are especially vulnerable to spam, phishing, DDoS attacks, ransomware, and corporate account takeovers. As MSMEs shift to the cloud for digital transformation, the risk of cyberattacks on cloud services increases. Security experts note that smaller organizations using Infrastructure as a Service (IaaS) are particularly susceptible to cyber extortion attempts, where ransomware encrypts files, demanding payment for decryption keys.”
Regarding the sophistication of ransomware attacks, he said, “India has faced a surge in state-sponsored attacks, a concern we’ve highlighted since our inception. Over the last three years, these attacks have increased by 278%. State-sponsored attacks inherently possess complexity and sophistication. Until September, service companies in India, particularly in IT and BPO, reported the majority of these incidents. The same report notes a 460% increase in attacks on government agencies and a 508% rise in the SME sector. Ransomware attacks are proliferating in the cybersecurity sector, evolving beyond existing defenses. The most severely impacted and vulnerable is the SME sector. Modern cyberattacks utilize advanced tactics, circumventing traditional malware detection and operating within the intricacies of their targets’ environments, aiming to steal data, install ransomware, encrypt data, and cause widespread disruption.”
It’s evident that the cyber attacks on MSMEs and SMEs are very common now and affect the entire economy at a large scale. Kaushik believes that India’s position is not very good. The WhizHack COO further said, “Once again, based on the numbers, globally, state-sponsored attacks stand at 68%, while India stands at 72%. Many Indian SMEs, integral to the nation’s growth, face heightened susceptibility to global ransomware attacks, exposing them to risks such as service disruptions, delivery delays, and significant financial losses. To address these threats, organizations need to proactively prepare and establish recovery strategies in anticipation of potential attacks. There is a significant dependency on threat countermeasures and reactive approaches, such as firewalls and anti-malware software, which are proving insufficient against increasingly sophisticated attacks. Simple yet cost-effective practices, which organizations often overlook, need to be implemented. The starting point is creating awareness.”
Talking about how vulnerable the MSME and SME sectors are to these cyber attacks, the WhizHack COO added, “Ransomware attacks have affected a significant portion of respondents in the last two years, with 73% reporting an incident. Among those affected, 28% admitted to paying the ransom, while an additional 42.5% acknowledged the possibility of considering such payments. Cybercriminals are now also attempting to exfiltrate intellectual property from companies, victimizing industries like BFSI, Chemicals, Automobiles, Airlines, and Food & Beverage. A study revealed that industries considering ransom payments include Construction (74%), Technology (51%), and Energy (43%). Regarding the impact on specific sectors, Legal (92%), Financial Services (78%), Manufacturing (78%), and Human Resources Services (77%) were most likely to have experienced ransomware attacks. Construction companies, in particular, may find themselves compelled to pay due to potential losses of crucial plans, disrupting large contracts, and jeopardizing deadlines and downstream projects. In terms of impact, the Manufacturing and Technology industries ranked highest for ransomware incidents, with Retail and Wholesale experiencing a notable increase in victims throughout the year, rising from 9th place to the top three.”
Now it is a fact that the government’s involvement and policy efforts have a significant ability to improve the susceptibility of Small and Medium-sized Enterprises (SMEs) to ransomware. Yet, the effectiveness of these actions depends on how carefully they are put into practice, how easily they are accessed, and how well they address the specific challenges faced by the sector. A well-thought-out and complete plan that includes these elements can greatly strengthen SMEs against ransomware attacks.
Government involvement and strategic policies can significantly enhance SME resilience against ransomware. Meticulous implementation, accessibility, and tailored solutions are crucial. “To initiate this process, providing financial support for cybersecurity measures, implementing training and awareness programs, establishing regulatory standards and compliance support, offering incident response and recovery assistance, and fostering collaborative information sharing are essential components,” he suggests.
There’s a significant need for an approach that equips the sector to confront and mitigate the threat of ransomware more effectively. It is high time when it must accelerate technology adoption, necessitating a mindset shift. “Addressing naivete, a lackadaisical cyber defense approach, and distrust is imperative. Adopting best practices is crucial, including employee training, robust password use, Multi-factor Authentication (MFA), regular software updates, and investing in effective Firewalls and Antivirus Software. Continuous technology review and updates are essential, as cybersecurity is an ongoing commitment. Like a virus, cyber threats evolve, demanding a proactive defense. Well-planned data backup mechanisms and regular cybersecurity drills are equally vital, akin to fire drills.”, says Kaushik Ray.
WhizHack Technologies, a 100% Make in India firm, offers services and solutions to businesses to mitigate ransomware-related vulnerabilities and is actively making changes to enhance the integrity of its services.
“By simulating a ransomware attack, one can not only enhance awareness of ransomware security within a company but can also assess the effectiveness of systems in preventing and detecting ransomware, and provide customized advice to improve overall defense against ransomware. This simulation involves a proactive and controlled exercise designed to replicate a genuine ransomware attack in a secure setting. It serves as a deliberate test by organizations to assess their preparedness and response to a simulated cyber threat without causing any actual harm to their systems or data,” said Ray.
It is believed to a large extent that cybersecurity is very expensive, which is why the SME sector players have been fence-sitters in adopting and upgrading their cyber defense. It is good that Swadeshi companies are working to help the MSME and SMEs by building a safe cyber-ecosystem and software in India.