The Impact of DDoS Attacks on Businesses. A Closer Look

In 2018, GitHub became the target of one of the largest DDoS attacks in history, with the attack peaking at 1.35 Tbps. Although the platform was down for only nine minutes, the brief outage had significant repercussions. For platforms like GitHub, even a short downtime can lead to substantial losses. When such incidents affect millions of companies worldwide, the consequences can be even more severe.

So, what effects do DDoS attacks typically have on businesses? And what lessons can we learn from well-known incidents? Let’s explore these questions in detail.

How DDoS Attacks Work

The primary goal of a DDoS attack has remained the same for decades: attackers aim to overwhelm the target’s resources by flooding them with data requests. This can effectively block access to a company’s IT infrastructure, from servers and networks to specific functions within mobile applications.

Attackers generally employ one of three methods:

1. Volume-Based DDoS Attacks: These attacks, measured in bits per second (bps), flood the targeted website or server with massive amounts of fake traffic.
2. Network or Protocol-Level Attacks: Measured in packets per second (pps), these attacks overwhelm the target's network infrastructure by sending a large number of packets.
3. Application-Level Attacks: Measured in requests per second (rps), these attacks exploit software vulnerabilities by directing a stream of malicious requests at specific applications.

Each of these methods can cause significant disruptions for businesses. What may start as a minor website glitch can quickly escalate into a complete shutdown of company operations. Let’s dive deeper into the primary consequences of DDoS attacks.

Loss of Clients

DDoS attacks often disrupt the connection between a company and its customers, preventing them from ordering services or purchasing products through their usual channels. Even though these issues are typically resolved quickly, some clients may choose to switch to competitors in the meantime.

This is why DDoS attacks have become a popular tactic in competitive battles. Even major global brands have been suspected of using them. For instance, Uber was once accused of launching a DDoS attack against Gett, a rival company, to disrupt its app.

Proving whether a DDoS campaign was orchestrated by a competitor is difficult, which is why such suspicions are rarely made public. However, in the NFT industry, participants frequently accuse each other of commissioning DDoS attacks. These incidents often lead to a shift in clients among companies, which can be tracked by monitoring the number of active wallets on NFT platforms.

Material Damage

IT infrastructure downtime caused by DDoS attacks costs large businesses around $400 billion annually, according to analysts from Splunk and Oxford Economics. This figure represents approximately 9% of total profits in this sector. Cybersecurity incidents are now the leading cause of unexpected service downtime, accounting for 56% of all cases.

Businesses often face direct costs from DDoS attacks, including lost revenue, fines for violating service level agreements (SLAs), and overtime payments to employees. There are also hidden costs, such as a drop in stock value and damage to the company’s brand reputation.

For example, in 2014, popular gaming services like Sony PlayStation Network (PSN) were hit by a large-scale DDoS attack. Hundreds of millions of gamers worldwide were unable to connect to games like World of Warcraft and Diablo III for several hours. The backlash against PSN was immediate, with some estimates suggesting that the incident cost the company tens of thousands of dollars.

Reputational Risks

DDoS attacks can render an application inaccessible or cause critical defects in its operation, severely undermining customer and partner trust.

Today’s users have little tolerance for technical issues, especially when it comes to entertainment services and social networks. A prime example is the powerful DDoS attack on DNS provider Dyn’s servers in 2016, which disrupted access to platforms like Twitter, Netflix, and Reddit. Frustrated users took to social media to express their anger, affecting both Dyn’s clients and the company itself.

Promotion Challenges

DDoS attacks can derail the websites of companies that are actively growing, disrupting planned marketing campaigns and product launches. This can result in additional expenses and lost profits.

One notable example is Buffer, a leading social media management software company. In 2013, Buffer suffered a DDoS attack just as it was launching a new version of its service. The attack caused the marketing campaign to fail, led to the hacking of many accounts, and created numerous user-related problems.

Extended Attacks

Inexpensive DDoS attacks are often used by cybercriminals to distract security teams. While cybersecurity specialists focus on the immediate threat, attackers may exploit network vulnerabilities, install malware, and steal confidential data. The loss of databases and other corporate intellectual property can cause immense damage to any business.

Additionally, attackers may use DDoS attacks to extort money from the victim. In 2015, the Swiss email service ProtonMail received an email from extortionists demanding a ransom and threatening a DDoS attack if payment wasn’t made. ProtonMail ignored the message, and shortly afterward, hackers took down the company’s main server for 15 minutes. The next day, the attack resumed on a larger scale, affecting critical systems and a data center, along with hundreds of ProtonMail’s client companies. Ultimately, ProtonMail paid a ransom of 15 bitcoins, but the attacks didn’t stop.

Legal Complications

Legal disputes are another consequence of DDoS attacks. Often, lawsuits are filed against the victim by other affected parties, such as clients or partners. However, these conflicts are usually resolved quietly since penalties are typically pre-negotiated in SLA agreements.

In some cases, the government may impose sanctions on the affected company. Sometimes, the situation becomes absurd—hackers themselves notify regulators that their victims have failed to report the attack. This scenario occurred in 2023 with MeridianLink, a developer of solutions for banks and financial institutions.

Conclusion

Real-life examples of DDoS attack victims highlight a crucial point: the consequences can vary widely, and it’s essential to be prepared for any outcome. The best approach is to minimize risks in advance.

We recommend adopting a comprehensive strategy to protect your company from DDoS attacks. Security measures should include both technical defenses and proactive strategies. Consulting with a DDoS protection provider who specializes in preventing such attacks and offers expert support 24/7 is the best way to ensure your company is safeguarded.

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