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Cyber Attacks in Paradise? Costa Rica Ransomware

The increase of cyber attacks worldwide has prompted companies and countries to reassess their defense capabilities. And by 2025, 60% of companies will evaluate cybersecurity risk when conducting business with other organizations.

For cybersecurity investors and those seeking cybersecurity venture capital, it’s vital to know about the recent attacks on Costa Rica’s government. These attacks and other notable hacks show how cybersecurity will continue to be a top concern for every organization and country worldwide.

By evaluating these incidents, investors will see the value in cybersecurity ventures. And there is a need for cyber-focused investors to help organizations. Their help can secure cybersecurity funds, so defenses are strengthened everywhere.

Option3 can help you with your cybersecurity investing needs. Whether you want to invest or seek funding for your cybersecurity startup. Continue reading to learn about what happened in Costa Rica and find out how we can help.

Costa Rica Crippled by Ransomware Attacks

In a ransomware attack, cybercriminals encrypt targeted victims’ data and ask for money in return. Ransomware has affected people and companies around the globe.

But this year, attacks on a country’s government have begun to alter how nations and organizations think about cyber attacks. Recently, a series of ransomware attacks on the government of Costa Rica has shown the detrimental consequences a cyber attack has on a country.

The Facts on the Costa Rica Ransomware

The Russian-based ransomware group Conti essentially declared war on Costa Rica in April. Crippling multiple offices and services, including tax and customs, by taking them offline.

Hackers demanded $20 million following the attack and the president declared a state of emergency.

A second attack was conducted by a different group called “Hive.” They infiltrated the public health service and other systems. Due to the inoperable network, many Costa Ricans didn’t receive paychecks for weeks.

Cybersecurity experts believe ransomware attacks on developing countries like Costa Rica will become more common.

The government mainly functioned on a digitized system and lacked adequate national defense to divert the attacks. This made it an easy target. Costa Rica’s turmoil is why companies worldwide should aggressively invest in a robust cybersecurity plan.

Notable Cyber Attacks of 2022

Cyber attacks around the world this year continue to show the growing need for cybersecurity. Here are five examples of cyber attacks.

1. Bernalillo County, New Mexico

In Bernalillo County, New Mexico, a ransomware attack in January. It struck county departments and government offices, forcing them offline.

The Metropolitan Detention Center’s security cameras and automatic doors were inoperable. And inmates had to be confined to their cells. Officials said they never paid a ransom to the hackers.

2. Nvidia Attacked by Lapsus$

In February, the semiconductor chip company Nvidia suffered a ransomware attack. The criminals leaked employee credentials and proprietary information.

And allegedly, the attack affected the organization’s operations for days. The cybercriminal group Lapsus$ stated they were behind the hack and demanded $1 million and more in exchange for 1 TB of data.

3. Production Halted for Toyota Suppliers

Toyota’s suppliers were significantly affected by hacks between February and March. One of the cyber attacks hit Kojima Industries. It prompted 14 plants to stop their operations.

This significant disruption resulted in a 5% reduction in Toyota’s monthly production. Within days of each other, hackers assailed two different suppliers. Inevitability, it lead to a temporary shut down of plants in the U.S.

4. Bridgestone’s Operations Halted

One of the world’s most notable manufacturers of tires, Bridgestone, was targeted by the ransomware group LockBit. Bridgestone stopped production for a week.

During this time, they evaluated a countdown from the hackers who threatened to leak data. After a thorough security check, the company reconnected with the affected network.

5. Ransomware Attack on Hensoldt

In January, the multinational defense contractor, Hensoldt, reported that U.K. subsidiaries suffered an attack. Hensoldt supplies sensor solutions and security software for the U.S. Army. They also provide services to the Marine Corps and the National Guard.

Allegedly, the ransomware gang Lorenz was behind the hack. They later marked the ransom “paid.”

Takeaways on Cyber Attacks

With these recent infiltrations into crucial organizations and infrastructures, the trend for cyber attacks in 2022 emphasizes a growing focus on countries’ infrastructures. Below are key takeaways about cyber attacks today.

  • Supply chains are more at risk
  • Countries without adequate cybersecurity are likely to be hit
  • Attacks can affect large populations and negatively impact the quality of living
  • Ransomware groups targeting countries have increased the demand for national defense

Besides the attack on governments, there has been increasing interest in hacks on other essential industries. These industries span education, legal services, and health care. And there have even been attacks on energy, utilities, and financial services.

Responses to Cyber Threats

Ransomware can surface in the mundane. A simple email attachment can put an entire company at risk. Data breaches can lead to the loss of thousands, if not millions of dollars.

Organizations such as Microsoft that have to combat the frequency of ransomware hidden in their files have aggressively shored up their defenses.

The growing need for the latest technologies that can protect data and other assets will only increase. As tactics by cyber criminals continue to evolve, the need to counter the hacker’s strategies will grow. Companies need specialized teams to analyze intent and method, so deflection is possible.

Organizations need effective cybersecurity fast to protect their information and profits. So they often reinforce their strategy by buying cybersecurity companies that can help.

More cyber-focused investors and cybersecurity organizations are required. They can provide that extra protection for larger companies which is why investing in cybersecurity is a wise decision.

Evaluating Investments With Option3’s Dedicated Experts

Cybersecurity investing allows investors to double growth. And their investments remain nearly unaffected by the economy.

The need for cybersecurity is growing, and so is the expertise required to navigate this ever-changing industry. Option3’s cybersecurity experts are a multi-functional team focused on technology and operations.

Cybersecurity Startup Funding

Invaluable cybersecurity startups that can provide that extra protection need funding. And multiple startups often fail within the first five years because of a lack of funding.

We can help you assess which method is best for your company. Even if you are seeking funding for your cybersecurity startup. And many options are available.

Options include venture capital, angel investors, and business loans. Additional ones to consider are grants, startup pitch competitions, and crowdfunding. But that’s not all.

If you are struggling to secure funding, one method is bootstrapping. But it is more challenging. You will need a sufficient amount saved and may even need to use credit cards to start your business.

It’s riskier than locking in funding with an optimal investor. But an advantage is that you will have more control over your cybersecurity company.

There are also two programs to consider as potential funding. The options include incubators and accelerators.

These programs can provide support to get your startup going. Incubators help develop your ideas. In comparison, accelerators provide mentorship and connections with investors to get funding.

Advisors With Specialist Expertise in Cybersecurity

Our experts have 25 years of experience on average each. And we have a technology board that evaluates each investment as well as a strategic advisory council. With specialist expertise in target market verticals, technologies, industries, and investment classes, our council can support all kinds of investors and companies.

Option3’s Investments and Focus on Cybersecurity

We have prioritized different areas of cybersecurity at specific times. Over the last six years, our priorities have changed based on our sector-selection methodology. Relying on underlying themes, we analyze how cyber attacks are conducted.

We also evaluate automation and disruptive technology. But that’s not all. We also look at governance and analytics as well as cyber-physical and risk transfer.

Eight companies have been invested, with the majority based in the Washington, D.C. area. And two previous investments were realized through acquisition by well-known leaders. Other companies have seen immense unrealize value creation.

We’ve varied our investments which span threat intelligence to data loss prevention. The main area we focus on now is physical infrastructure.

This area includes critical infrastructure, industrial controls, and operational technology. Other areas we assess are automotive security and the internet of things.

Explore Cybersecurity Investing With Option3

The attack in Costa Rica is a prime example of what can happen to a country that lacks proper cybersecurity. Analyzing this event and similar cyber attacks show an increasing need for cybersecurity.

By looking at the facts, it’s clear that the need for cybersecurity companies and investors will grow. And cybersecurity investing can be profitable, often withstanding fluctuating economies during dire times.

Our experts are ready to guide you. Whether you may need help with an early-stage cyber security company or maybe a cyber-focused investor who wants to fund. Contact Option3 to discuss your cybersecurity investing needs today.


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