If you work in any position of responsibility within your business, you know how crucial cyber security has become. Layers of security procedures are becoming a part of daily life. If this doesn’t seem familiar or you think you need an update on the latest cyber security practices, you should keep reading.

More and more businesses are directing their focus and budgets toward cyber security solutions. But what exactly should companies do to implement to stay ahead of the game? Where have other businesses gone, and what can you learn for your own plan? 

In this guide, we’ll identify five NYC-based companies affected by cyber attacks, such as ransomware, in the past few years. By examining these cases, we’ll emphasize the importance of a solid cyber security strategy and team, helping you understand what steps to take to protect your business.

What’s so Major about Cyber in New York? 

Cyber security should be as critical to your business as finance and sales. It can no longer be an afterthought. New York, a global hub for business and innovation, remains a prime target for cyber attacks. 

The city is home to large amounts of sensitive data, from the financial district to biostatistical data hubs. Despite over 300 dedicated cyber security companies, New York reported the third-highest ransomware attacks (135) and corporate data breaches (238) in the U.S. in 2022. This means that businesses in New York, regardless of their size, are frequently targeted, highlighting the need for effective cyber security measures.

Is your business safe? Think again. Here are the top industries under threat this year so far:

1. Healthcare (Life Sciences and Pharma Organizations): These industries are attractive targets due to the sensitive patient data and valuable research they hold.

2. Government Agencies: Critical information and infrastructure make government agencies prime targets for hackers.

3. FinTech and Insurance: These sectors are continually in the crosshairs because financial transactions and personal data are at the core of their operations.

4. Infrastructure (Energy): The energy sector's operational technology systems are increasingly vulnerable to sophisticated cyber-attacks.

5. Manufacturing: Disruption in manufacturing can have wide-reaching consequences, making it a lucrative target.

6. Transportation: The reliance on technology for logistics and operations opens up numerous avenues for cyber threats.

Wondering what threats you should be on the lookout for? Here are the most common types of cyber-attacks you need to be aware of:

1. Malware: Malicious software is designed to disrupt or damage your systems.

2. DoS and DDoS Attacks: Denial of Service attacks overwhelm your systems, causing disruptions.

3. Phishing: Deceptive attempts to steal sensitive information by pretending to be trustworthy.

4. Ransomware: Malicious software that encrypts your data and demands a ransom for its release.

5. MitM Attacks: Man-in-the-middle attacks intercept and potentially alter communications between you and your clients.

6. Data Breaches: Unauthorized access to confidential data leads to significant business and reputational damage.

7. APTs (Advanced Persistent Threats): Long-term targeted attacks designed to steal data or spy on your activities.

In the past year, ransomware attacks in the finance industry surged by 64%. New methods for stealing data and sensitive information are constantly evolving, making it vital for businesses to stay vigilant.

But it's not just these industries at risk. You are a potential target if your business uses technology and stores data. Cyber attacks are a real and present danger to businesses of all sizes and sectors. The developing nature of these threats means that every business needs to take cyber security seriously.

3 Notable Examples of Network Security Breaches 

To give you some background and examples—and to help you determine whether your business is still exempt—let’s examine five companies in New York that have experienced cyber-attacks. 

These examples show that no business is immune, whether a small startup or a large corporation. The lessons learned from these cases can help you understand the importance of cyber security and how you can better protect your business.

1. JP Morgan Chase

Where have you been if you don’t know about the JP Morgan Chase cyberattacks? As one of the world’s largest banks, JP Morgan has faced major cyber threats—notably in 2014 and again in 2024. These incidents were wake-up calls, packed with lessons for anyone serious about protecting their business from cyber attacks.

2014 Cyberattack

In 2014, JP Morgan Chase was hit by a massive cyberattack. Hackers exploited a zero-day vulnerability in the bank’s web applications, gaining access to the personal data of 76 million households and 7 million small businesses.

The hackers obtained sensitive information, including names, addresses, and card numbers. They also obtained a list of the bank’s applications, which gave them a blueprint to target known vulnerabilities.

This attack was massive—almost half of U.S. households were affected, and the bank’s stock took a hit, dropping 0.89% in after-hours trading. It was a harsh reminder of the importance of strong cyber security.

This event shook the whole industry. JP Morgan recognized this attack's impact and took the initiative to double its $250 million annual computer-security budget and invest more in cyber security solutions across the board. 

2024 Cyber Incident

In 2024, JP Morgan Chase faced another security scare, but this time, it wasn’t hackers. A software glitch led to unauthorized access, potentially compromising the data of over 451,000 retirement plan participants.

Improperly set privileges allowed three system users connected to the bank’s customers to access records they shouldn’t have. This wasn’t an external hack but an internal oversight.

This breach raised severe concerns about data security, even without external hackers being involved. It showed that internal controls are just as critical as external defenses.

Lessons for Businesses

JP Morgan Chase deals with millions of cyber threats every day. As your business grows and handles more data, you’ll likely face increasing threats. Not every attack can be prevented, but having a skilled cyber security team—like JP Morgan’s—can help mitigate the damage.

1. Expect More Threats as You Grow: As your business expands, so will the number of attacks. Be prepared for this increase and ensure your cyber security solutions evolve with your companies.

2. Internal Controls Matter: The 2024 incident shows that threats can come from within. Review your internal systems regularly to prevent unauthorized access.

3. Have a Strong Response Team: Like JP Morgan, having an adept cyber security or tech team is non-negotiable. They might not stop every attack but can significantly reduce the impact when something goes wrong.

By learning from JP Morgan’s experiences, you can better protect your business as it grows and navigates the complex landscape of cyber threats.

2. Change Healthcare

Change Healthcare is a critical player in the healthcare industry, processing billions of medical claims annually. As a significant health payment processing company, its operations are critical to the smooth functioning of healthcare services across the United States.

In February 2023, the company was hit by one of the most significant ransomware attacks in recent history. This cyberattack disrupted healthcare operations nationwide and exposed substantial vulnerabilities in their cyber security strategy, demonstrating the importance of robust security practices in protecting sensitive medical data and maintaining operational stability.

The Cyberattack

Even with a dedicated cyber security team, Change Healthcare's cyber security strategy had critical gaps. The attack exposed weaknesses in basic security procedures, such as remote access controls and multi-factor authentication (MFA). 

These lapses made their systems vulnerable to one of the most damaging types of cyber attacks. It’s a clear example of how failing to implement cyber security solutions properly can expose even large organizations.

The attack had severe consequences:

• Data Breach: Nearly a third of Americans' sensitive medical data was compromised. This breach highlighted the importance of effective cybersecurity solutions, even for major companies.
• Operational Disruptions: The attack disrupted healthcare services nationwide. 36% of healthcare providers experienced suspended claim payments, 32% couldn’t submit claims, and 22% had trouble verifying patient eligibility. These disruptions led to a backlog of unpaid claims, threatening patient care.
• Financial Impact: The breach cost UnitedHealth Group, the parent company of Change Healthcare, around $870 million in Q1 2024. This underscores the need for a well-executed cyber security incident response plan to minimize damage and support recovery.

Change Healthcare had to rebuild its platform to secure its systems in response. UnitedHealth provided over $9 billion in financial support to healthcare providers affected by the disruptions. These actions highlight the importance of a strong cyber security plan to prevent such extensive damage.

What Your Business Can Learn

Though Change Healthcare’s attack was on a large scale and an anomaly in their business activities, this incident offers key lessons for businesses:

1. Having a cyber security plan isn’t enough; it must be properly implemented. Ensure that basic security measures like MFA and secure remote access are fully enforced across all systems.

2. Conduct frequent audits of your cyber security strategy to identify and address weaknesses. Keeping your cyber security solutions up to date is critical.

3. Develop and regularly update a plan for identifying and responding to cyber-attacks. A proactive incident response plan can significantly reduce the impact of a breach.

4. Investing in strong cyber security solutions is essential whether your business is large or small. Even basic measures can protect against serious threats.

The network security threats that led to Change Healthcare’s significant losses had the potential to be avoided in this case. Ensure you continuously run tests for areas of weakness in your infrastructure. 

3. Grubman Shire Meiselas & Sacks 

In May 2020, Grubman Shire Meiselas & Sacks (GSMS), a prominent law firm known for handling sensitive information for high-profile clients, was struck by a severe ransomware attack. The rise of remote work during the COVID-19 pandemic made firms like GSMS more vulnerable to cyber threats. 

Cybercriminals took advantage of this new environment, exploiting potential gaps in the firm’s defenses. This attack, carried out by a known ransomware group, not only locked up vital data but threatened to release it publicly, putting immense pressure on the firm and its clients.

The Attack

The attackers used REvil ransomware to encrypt GSMS’s data, initially demanding a ransom of $21 million and later increasing it to $42 million. They stole significant sensitive information, including contracts and financial details of various well-known clients, and threatened to release this data publicly.

The attack seriously damaged GSMS’s reputation and disrupted its operations. The breach likely led to some clients terminating their relationships with the firm due to security concerns, although this hasn’t been confirmed. GSMS faced considerable costs, including legal fees, cyber security expenses, and potential revenue loss. The firm also handled potential legal actions from clients affected by the breach.

Following the attack, GSMS upgraded its cyber security measures, including hardware, software, and security protocols. They developed a solid incident response plan, focused on data recovery, and informed clients to rebuild trust. The firm also engaged legal experts to handle the complex aftermath.

What Your Business Can Learn

While the exact details of the GSMS cyberattack are not fully disclosed, we can infer potential gaps in their security and how you can avoid similar issues:

1. Upgrade Your Cyber Security Strategy: Review and enhance your cyber security strategy regularly to keep up with new threats. Ensure you have the latest tools and practices to defend against attacks like ransomware.

2. Prepare for Ransomware: Develop a clear plan and response strategy for ransomware attacks. Being prepared can make a big difference if you face a similar situation.

3. Communicate Transparently: Keep clients informed throughout any security incident. Clear and timely communication helps rebuild trust and demonstrates that you are actively managing the situation.

4. Invest in Effective Cyber Security Tools: To protect against various threats, use the right cyber security solutions for your business, including anti-malware software and firewalls.

5. Build a Skilled Cyber Security Team: Whether in-house or through external experts, having a knowledgeable team is essential for effectively managing and responding to cyber threats.

6. Stay Informed About Threats: Keep up with the latest types of cyber attacks and learn how to spot them early. This proactive approach helps you take action before a threat causes severe damage.

Developing a Strong Cyber Security Incident Response Plan

Cyberattacks can hit any business, whether a major player or a small firm, as shown by the high-profile breaches at JP Morgan Chase in 2014 and GSMS in 2020. These incidents highlight how crucial it is to have a well-thought-out incident response plan in place. Here’s how you can build an effective plan to protect your business’s future:

Assess Your Risks

First, figure out what data and systems are most important to you. This will help you focus your cyber security efforts where they matter most. The GSMS attack was a clear reminder of how critical it is to protect sensitive client information.

Develop a Response Team and Train Staff 

Put together a solid cyber security team, including IT experts, legal advisors, and communication pros. Make sure they’re well-trained and stay current with the latest security solutions. Just like JP Morgan Chase bolstered their defenses after their breach, having a capable team is key to handling threats.

But don’t stop there—train all your employees on security best practices and how to spot potential threats. Your cyber security team should lead this training, but remember, they need ongoing updates, too. GSMS’s situation proved that everyone in your business needs to be ready.

Create Clear Procedures and Establish a Chain of Command 

Create detailed steps for handling different types of cyber attacks. This should include containing the threat, assessing the damage, and communicating with everyone involved. The GSMS case highlighted the importance of having clear, actionable steps.

Decide who will make decisions during an incident and how information will be communicated within your organization. A clear chain of command ensures a smooth response, as shown by JP Morgan Chase’s well-organized approach after their attack.

Invest in Cyber Security Solutions

Allocate funds for advanced cyber security tools and your cyber security solutions, like firewalls and anti-malware software. Investing in these solutions helps prevent and minimize damage, much like the increased spending at JP Morgan Chase after their breach.

Conduct Regular Security Audits and Plan for the Unexpected

Regularly audit your IT infrastructure to identify and fix vulnerabilities. These routine checks help you avoid potential threats and strengthen your cyber security strategy.

Recognize that not every cyber attack can be completely prevented. Focus on having a solid incident response plan to manage and minimize the impact of breaches. As the GSMS and JP Morgan Chase cases show, having a solid team and a well-prepared plan is crucial for navigating and recovering from cyber incidents.

Strengthening Cyber Security Solutions — Final Remarks

As cyber threats become more sophisticated, every business needs to be prepared. The breaches experienced by companies like JP Morgan Chase, GSMS, and Change Healthcare highlight the urgent need for a solid cyber security strategy. Whether you're running a large corporation or a small business, having the right cyber security solutions in place is crucial.

Learn from these companies affected by cyber-attacks and ensure your cyber security team is well-prepared. Implement a strong cyber security incident response plan and stay informed about the latest types of cyber attacks.

Refine your cyber security plan today to safeguard your business against evolving threats. By taking proactive steps now, you’ll be better equipped to handle challenges and keep your operations secure.

Developing Leading Cyber Talent Solutions

At McGregor Boyall, we understand that the rising number of businesses affected by cyber incidents is concerning. However, it doesn’t have to cause you unnecessary stress. Our dedicated consultants are experts in understanding key industry trends and identifying the perfect additions to your cyber security team based on your business's needs. With a positive reputation for collaborating with businesses across multiple industries, we are well-equipped to support your cyber security goals.

Contact us today to enhance your cyber security solutions and safeguard your business against future threats.