Paying a ransom demand won’t necessarily result in a quick fix – it won’t even prevent cybercriminals from coming back for a second attack, according to data from Hiscox’s 2022 Cyber Readiness Report.
In a special focus on ransomware, Hiscox found that only 59% of companies that paid a ransom successfully recovered their data. While the attackers do provide a decryption key, it can take weeks to fully decrypt systems and the malicious attack may well negatively affect the data integrity.
Worse, Hiscox found that 36% of firms who paid a ransom experienced another attack and nearly a third (29%) still saw data leaked.
“not uncommon for a company to be hit multiple times”
“Ransomware is still the most prevalent and damaging form of cyberattack and it is not uncommon for a company to be hit multiple times,” said Gareth Wharton, cyber CEO for Hiscox.
“Even if a business owner makes the decision to pay the ransom, often they cannot fully restore their systems or prevent a data breach. That is why it is vital that businesses take the necessary steps to protect their data and systems against a cyberattack; making it harder for cyber criminals to gain entry to their systems by keeping software up-to-date, running regular in-house training, and frequently backing-up data.”
The Most Likely Vector for Ransomware Actors?
According to Hiscox, Phishing emails are the most likely vector for ransomware actors followed by:
- Credential theft (44%)
- Third-party supplier (40%)
- Unpatched server (28%)
- Brute force attacks e.g. password guessing (17%)
Big Differences in How Well Prepared Certain Sectors Are
Some sectors hit by ransomware seem more prepared to weather an event without paying a ransom – Hiscox found just 18% of professional services firms pay and 62% of food and drink companies pay.
Also on the more prepared end were construction at 19% and financial services at 23%. Joining food and drink companies were travel/leisure at 50% and manufacturing at 51%.
Frequency and Severity of Cyberattacks Increases
Overall, frequency and severity of cyberattacks has increased, according to the insurer’s broader cyber report, with the number of companies reporting an event rising to 48% from 43%.
One-in-five of the nearly 5,000 firms surveyed said the cyber event threatened their firm’s financial solvency and the median cost of an event rose 30% to nearly $17,000, Hiscox found.
Risks for Small Firms Increase
Cybercriminals also cast a wider net when it comes to their targets, with small firms very much at risk and seeing a nearly four-fold rise in the average number of attacks.
“While the cyber criminals have long targeted high-value companies, it is clear they are now moving down the food chain.
“International agencies have recently warned that more mid- and small-sized businesses are being targeted and this is borne out in this year’s report.
“Companies with revenues of $100,000 to $500,000 can now expect as many cyberattacks as those earning $1m to $9m annually,” said Wharton.”
New Sectors Targeted
Cybercriminals also branched out in terms of industry sector.
Where energy firms and transport/distribution saw the highest number of attacks one year ago, this year’s most-targeted sectors were travel and leisure, professional services, and retail/wholesale.
Original article by Erin Ayers, Managing Editor, Advisen, [email protected]
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