What is the real cost of ransomware?

Cybereason released research findings from a global ransomware study of nearly 1,300 security professionals that reveals more than half of organizations have been the victim of a ransomware attack, and that 80 percent of businesses that chose to pay a ransom demand suffered a second ransomware attack, often at the hands of the same threat actor group.

The report also divulged that of the organizations who opted to pay a ransom demand in order to regain access to their encrypted systems, 46 percent reported that some or all of the data was corrupted during the recovery process.

These findings underscore the real cost of paying ransomware attackers, and that organizations should focus on early detection and prevention strategies to end ransomware attacks at the earliest stages before critical systems and data are put in jeopardy.

Ransomware true cost to business

• Loss of business revenue: 66 percent of organizations reported significant loss of revenue following a ransomware attack
• Ransom demands increasing: 35 percent of businesses that paid a ransom demand shelled out between $350,000-$1.4 million, while 7 percent paid ransoms exceeding $1.4 million
• Brand and reputation damage: 53 percent of organizations indicated that their brand and reputation were damaged as a result of a successful attack
• C-Level talent loss: 32 percent of organizations reported losing C-Level talent as a direct result of ransomware attacks
• Employee layoffs: 29 percent reported being forced to layoff employees due to financial pressures following a ransomware attack
• Business closures: A startling 26 percent of organizations reported that a ransomware attack forced the business to close down operations entirely

“Ransomware attacks are a major concern for organizations across the globe, often causing massive business disruptions including the loss of income and valuable human resources as a direct result. In the case of the recent Colonial Pipeline ransomware attack, disruptions were felt up and down the East Coast of the United States and negatively impacted other businesses who are dependent on Colonial’s operations,” said CEO of Cybereason, Lior Div.

“Paying a ransom demand does not guarantee a successful recovery, does not prevent the attackers from hitting the victim organization again, and in the end only exacerbates the problem by encouraging more attacks. Getting in front of the threat by adopting a prevention-first strategy for early detection will allow organizations to stop disruptive ransomware before they can hurt the business.”