Ransomware: The Underestimated Danger

The study of the cyber cause
Ransomware: The Underestimated Danger

Pay the ransom or not? This is a question that companies affected by ransomware attacks frequently face. However, a study by Cybereason shows that a one-time payment is often not enough.

73% of companies surveyed by Cybereason (69% in Germany) have been affected by at least one ransomware attack this year. That’s compared to just 55 percent in the 2021 Ransomware: The True Cost to Business Study. It also shows once again that it is not worth paying a ransom: 80 per cent of companies (82 per cent in Germany) that have paid victims a second time. In Germany, it is positive that none of the companies surveyed paid more than twice, while it paid the full 10 percent internationally for the third time.

And even if the ransom is paid, 54 percent of companies still have some or all of their data corrupted during the recovery process. In Germany, this affected nearly 70 percent of companies. Internationally, this corresponds to an increase of 17% over the previous year (2021: 46%). These findings underscore why ransomware attackers aren’t worth it, and why organizations should instead focus on detection and prevention strategies to stop attacks early, before critical systems and data are compromised.

“Ransomware attacks are traumatic events, and when attackers attack a second, third, or fourth time in a matter of weeks, it can cause an organization to kneel. Deploying effective anti-ransomware solutions, however, is easier said than done, and hackers know it. For a ransomware attack for the first time, organizations need time to assess their security posture, identify the right tools, and then find the right tool and budget to pay for it.” Lior Dave, CEO and Co-Founder of Cybereason, said ransomware gangs are aware of this and this is the main reason why ransomware is so quickly directed. Blow again.

Incidentally, ransom demands increase with each attack: nearly 70 percent of companies (about 63 percent in Germany) paid a higher ransom demand the second time around.

False sense of security

91 percent of German respondents said they have the right personnel to optimally manage ransomware attacks. 71 percent also believe they have the right plans and procedures in place. However, nearly 69 percent of those surveyed fell victim to a ransomware attack.

Additionally, 88% of respondents in Germany have cyber insurance that covers ransomware attacks. However, securing systems should remain a priority. Nearly 37 percent of those surveyed who had to accept business losses as a result of ransomware stated that the company’s brand had been damaged – no insurance protecting against this, only defense.

The survey also shows that companies do not have the right tools to detect attacks: 60 percent of companies worldwide that have been victims of a ransomware attack report that ransomware gangs have been on their network for up to six months before they discover them. Cyberson explains that this refers to a double-extortion model, in which attackers first steal sensitive data and then threaten to release it if the ransom is not paid.

Supply chain weakness

Supply chains can be a vulnerability and augment for ransomware attacks. Nearly two-thirds of companies (64% internationally and 61% in Germany) that have been affected by a ransomware attack believe that the attackers entered their network through one of their suppliers or business partners.

Loss of people after attacks

Nearly 35 percent of companies that have had to accept business losses due to ransomware globally and in Germany have suffered C-level resignations after such a ransomware attack. In addition, there are cases of layoffs as a result of ransomware attacks: nearly 40 percent of companies (39 in Germany) incurred business losses due to ransomware have laid off employees as a result of the attack.

(No.: 48411024)