Businesses paying ransomware ransoms doubles in 2024

New research from cybersecurity provider Hornetsecurity indicates that the number of businesses paying ransoms following ransomware attacks has more than doubled over the past year.

The study found that 16.3% of ransomware victims opted to pay a ransom in 2024, compared to just 6.9% in 2023. Additionally, there has been a significant increase in data loss attributed to ransomware attacks, with 30.2% of businesses experiencing such losses in 2024, an increase from 17.2% in the previous year. Alarmingly, 5% of organisations reported a complete loss of all affected data.

Data recovery rates have decreased as well, dropping from 87.4% in 2021 to 66.3% in 2024. Hornetsecurity attributes this decline to the growing sophistication of cyberattacks.

Email and phishing remain the most common vectors for ransomware attacks, accounting for 52.3% of incidents. Though a slight reduction in attack volume is reported, from 21.1% in 2021 to 18.6% in 2024, the severity has increased.

Daniel Hofmann, Chief Executive Officer of Hornetsecurity, commented on these findings, stating, "The evolving landscape of ransomware threats highlights the need for constant vigilance.

"The data shows that while fewer attacks are being reported, the outcomes are far more damaging, with potentially devastating consequences for organizations that fall victim to them.

"Criminals are constantly shifting tactics, and organisations of all sizes must invest in comprehensive security measures and ongoing cybersecurity awareness training to stay protected."

The survey highlights the role of generative AI technology in increasing fears of ransomware, with 66.9% of respondents expressing heightened concern over potential attacks. Despite high levels of awareness about ransomware risks among senior leadership in 89.4% of businesses, only 56.3% are actively engaged in prevention strategies.

Hornetsecurity's research further reveals that ransomware protection is viewed as a top IT priority by 84.1% of respondents, with 87% establishing disaster recovery plans. However, some organisations believe reliance on platforms such as Microsoft 365 or Google Workspace negates the need for formal plans, with 13.1% of respondents holding this view.

While cybersecurity training is recognised by 95.8% of respondents as valuable, perceived barriers include time demands (17.8%), belief that users are "untrainable" (14.4%), training costs (12.3%), and resource strain on IT staff (10.6%). Training is regarded as outdated by 7.6% of respondents.

Hofmann added, "Generative AI is a game-changer in ransomware, making attacks smarter and organisations understandably more nervous. It's promising to see more businesses taking up ransomware insurance, but awareness isn't enough.

"Next-gen, AI-powered cybersecurity solutions are a crucial step in the battle against cybercriminals, but it is clear that organisations also need strong leadership, robust and engaging training, and constant vigilance to stay one step ahead."

The survey also indicates an improvement in awareness regarding the vulnerability of Microsoft 365 data to ransomware, with uncertainty reduced from 25.3% in 2022 to 9.8% in 2024. The uptake of ransomware insurance has similarly increased, with 54.6% of organisations now purchasing coverage, compared to 37.9% in 2022.

The survey involved 502 IT professionals globally and was conducted by Hornetsecurity in August 2024.