Can your company survive if your most important data is suddenly encrypted or deleted by cybercriminals? This is the worst situation many organizations find themselves in as a result of ransomware attacks. But there are many other scenarios that pose serious risks to companies.

ESET experts have analyzed how individuals and companies are setting themselves up for potential failure by neglecting to prepare a cyber resilience strategy in advance. In this article, we look at an important aspect of how companies can help build resilience and improve their cybersecurity posture.

Having important data backed up ready to use for recovery at any time is a real safety net that many people don’t think about until it’s too late. Even those who have backups of data can mishandle it, which continues to expose the organization to risk. In addition, even data saved through backups can become a target for cybercriminals.

Why do you need a backup?

Ransomware has helped spread awareness about the importance of data backup more than any other cyber threat. The prospect of malware designed to encrypt all of an organization’s data, including connected backups, has forced companies to invest heavily in risk mitigation measures. And it seems to be working. According to one estimate, the proportion of victims paying the ransom dropped from 85% in the first quarter of 2019 to just 35% in the fourth quarter of 2022. With ransomware continuing to be a major problem for SMBs, these types of attacks make backups even more important.

But that’s not the only reason backing up your data is important. There are a number of risks that regular backups can reduce, such as:

• Destructive data extortion attacks, fueled in part by the cybercrime-as-a-service ecosystem, where data is fraudulently extracted and encrypted before a ransom is demanded. ESET’s September-December 2022 threat report found the use of increasingly destructive tactics, such as the use of erasure tools that mimic a ransomware attack and encrypt the victim’s data without the intention of providing a decryption key.
• Accidental data deletion by employees remains a problem, especially when sensitive data is stored on personal devices without backup. In addition, the constant risk of loss or theft of these devices should be considered.
• Physical Threats: Floods, fires, and other natural disasters can destroy offices and data centers, increasing the importance of storing backups of sensitive data in a different geographic location.
• Compliance and audit requirements are becoming increasingly onerous. Failure to provide information requested by relevant authorities may result in fines and other sanctions being applied to the company.

It’s hard to quantify, but backing up data doesn’t follow best practices, and it can be costly. The average cost of ransomware attacks in Q4 2022 was over $400,000. But there are many other direct and indirect consequences to consider, both financial and reputational.

How to develop an effective backup strategy?

Developing a best-practice backup strategy doesn’t have to be an opaque process, and the following guidelines will help you find a formula for success.

1. Develop a strategy

While this may seem obvious, it pays to plan carefully to ensure that your backup strategy meets your company’s requirements. Consider it part of your disaster recovery and business continuity plan. Aspects such as the risk and impact of data loss events and data recovery objectives must be assessed.

2. Identify the data you want to back up

Identifying and classifying data is an important first step in this process. Not all data can be considered so business critical that it needs to be backed up. Data should be classified according to the potential impact on the business if it is not available, which in turn will be affected by the company’s approach to risk.

3. Follow the 3-2-1 rule

This method (minimal, by the way) involves creating three copies of data on two different media, with one copy stored off-site and not connected to the network. The last point is especially important because ransomware often looks for data in backups and also encrypts them if they are on the same network.

4. Encrypt and secure your backups

Given that attackers also target data in backups to extort from victims, it’s a good idea to keep them encrypted so they don’t have access to that information. This will add an extra layer of protection beyond the 3-2-1 mechanism (at least 3 copies, 2 different storage media, 1 copy stored off-site) if you use it.

5. Do not forget about cloud data (SaaS)

Much of corporate data is now stored in software-as-a-service (SaaS) applications. This can create a false sense of security, giving the impression that data is flawlessly protected by the providers of these services. In fact, it’s worth adding an extra layer of protection by backing up this data.

6. Check your backups regularly

There’s no point in backing up your company’s data if it can’t perform an adequate recovery on demand. That’s why backups should be tested regularly to ensure that data is being copied correctly and fully restored.

7. Backup at regular intervals

Likewise, a backup loses its value if it takes too long to restore. How regularly you should back up depends on your business. A very busy online store will require almost constant backups, but a small law firm may back up data somewhat less frequently. Either way, consistency is key.

8. Choose your technology partner carefully

No two technology providers are the same. But there are certain features to look for when choosing a backup solution. Compatibility with existing systems, ease of use, flexible scheduling, and predictable costs are all important. Depending on the size and trajectory of your business, scalability may also be an important consideration.

9. Don’t forget endpoints

Backing up network drives and cloud storage is important, but don’t forget data stored on user devices such as laptops and smartphones. All of this should be included in a company-wide backup policy or strategy.

10. Look beyond the backup

Remember, while backups are absolutely necessary, they are only one of the pillars of a solid IT security architecture. You should add endpoint, network, and server/cloud security tools, threat detection and response tools, and more. Also, implement other cyber hygiene best practices, such as regular security updates and patches, password management, and incident response.

Data is your company’s most important asset. Don’t wait until it’s too late to formulate an enterprise-wide backup strategy.

ESET, one of the world leaders in the market for cyber security solutions, with a history of more than 30 years of experience and innovation, includes in its range anti-virus and anti-malware solutions that meet the needs of companies and organizations, regardless of size.

Its suite of anti-malware solutions is complemented by Xopero’s backup and recovery products from the two brands’ technology alliance.

Xopero backup solutions are designed specifically for companies and are intended for business infrastructures of any size, protecting workstations (Windows, macOS and Linux), servers, Microsoft 365 environments and databases.

With a very intuitive and easy-to-use administration interface, Xopero One allows you to set up the solution very quickly for both a cloud backup scenario and an on-premises or hybrid scenario

Companies, regardless of their size, can test Xopero products for free without any additional obligations. To download the trial version, click here.

The article is supported by ESET