MFA or Pay the Price

MFA or Pay the Price

Hamilton just got handed an $18.3M cybersecurity bill.

Why? Their insurer denied the claim. The reason? No MFA.

A Wake-Up Call for Every Organization

In February 2024, the City of Hamilton fell victim to a devastating ransomware attack. 80% of their network went dark. Transit, tax processing, fire department records—wiped or frozen.

The attackers demanded $18.5 million. The city refused to pay.

Smart move ethically. But still: the recovery cost was nearly the same.

And then came the second gut punch:

The insurance company denied coverage due to a lack of Multi-Factor Authentication (MFA) — a basic security control.

“We Have Insurance” Isn’t a Security Strategy

Cyber insurance is not a substitute for cybersecurity.

It’s a safety net — but only if your organization follows best practices.

Many policies now require MFA, endpoint protection, user training, and regular patching.

Fall short? You’re on your own.

What Does This Mean for SMBs, Schools, Law Firms, and Clinics?

If a major Canadian city can be devastated by an overlooked MFA rollout, imagine what one missed step could cost a smaller organization.

• Schools hold sensitive student data

• Healthcare providers store PHI

• Law firms manage confidential client communications

One breach could wreck more than your systems. It could destroy trust — and your bottom line.

5 Takeaways You Can’t Ignore

1. Implement MFA — on all cloud services, email accounts, and admin portals

2. Test your backups — don’t assume they’re working

3. Train your users — phishing is still the #1 attack vector

4. Know your insurance policy — do you meet the requirements?

5. Partner with a cybersecurity-first MSP — like Gigabit Systems

70% of all cyber attacks target small businesses, I can help protect yours.

#Cybersecurity #ManagedIT #MSP #Ransomware #SMBSecurity