7 Cybersecurity Risks for Private Equity Firms
Private equity firms face several cybersecurity risks. Without adequate cybersecurity measures, your data may face threats and breaches from the following nine risks.
1. Viruses
Viruses are malware that can alter code inside your computer or other software. Bad actors use this code to stop your device or network from working correctly. You might lose your files, or hackers damage them. Automatic updates and anti-virus software can help protect you.
2. Spyware
Spyware records your desktop so hackers can see your movements and grab sensitive information. Spyware often goes unnoticed because you won’t know it’s happening unless you have cybersecurity in place. You can install spyware protection on your devices to help prevent hacking.
3. Malware
Malware is a term that covers several types of harmful software, including many methods on this list. Attackers use malware to steal your data, especially information they can use for financial gain. Clicking malicious links often leads to malware downloads.
4. Ransomware
With ransomware, hackers can restrict your access to certain parts of your computer by encrypting files. The bad actor then claims they’ll return access to you if you hand over a large sum of money or digital currency. Prevention tactics include cybersecurity measures and staff training.
(Learn more about how to prevent ransomware from infiltrating your systems.)
5. Phishing
Suspicious emails are a common form of phishing. A scammer sends an email that appears to be from a legitimate company, trying to convince you to click links or attachments that ask you for sensitive information. Email filters and learning about the signs of phishing can help prevent attacks.
6. Distributed Denial of Services (DDoS) Attacks
DDoS attacks overload a server, causing it to crash or otherwise stop working correctly. You’ll lose your reputation and data as you’re no longer be able to provide your services. Cybersecurity defenses and website rescripting can help prevent these attacks.
7. Physical Security
Your servers and data centers have a physical location. Whether on your premises or hosted by a third party, an unauthorized individual may gain access to the site. Bad actors can physically damage your servers or steal your data. Proper physical security measures, like cameras and biometric locks, deter these attackers.
Avoid Value Erosion in Portfolio Companies
Invest in cybersecurity to keep your return on investment (ROI) in good shape. If you look at the past value erosion of cyberattacks, you can get a decent sense of how to move forward. Taking no action allows more data breaches to occur, meaning you’ll face more penalties. However, implementing cybersecurity measures enhances your portfolio value.
Work With Agio for Cybersecurity
We work to help private equity firms achieve greater levels of cybersecurity. Learn more about Agio’s cybersecurity services for private equity firms today.
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