Second edition of the Cybereason ransomware study: The true value of ransomware attacks for businesses
Cybereason publishes the results of its second annual ransomware study. Conducted in a year marked by unprecedented attacks, this study sheds light on the real impact of ransomware on businesses. This global study shows that 74% of French organizations (73% worldwide) have experienced at least one ransomware attack in 2022, compared to only 55% in 2021.
The study again shows that ransom demand payment does not pay, as 74% of French companies surveyed (80% of global organizations) that paid were affected a second time, 91% d of them (68% in the whole world) indicating that the second attack took place less than a month after the first and the cybercriminals demanded a higher ransom from them.
The report, titled Ransomware: The True Cost to Business Study 2022, shows that most organizations that chose to pay a ransom did so because they had no backup and thought it was the best way to quickly regain access to their systems and data. The study demonstrates the urgent need to remind organizations that they should really, as a priority, focus on detection and prevention strategies to stop ransomware attacks, before endangering their systems and critical data. .
“Ransomware attacks are traumatic events, and when cybercriminal groups attack the second, third or fourth time in just a few weeks, it can bring an organization to its knees. Deploying effective anti-ransomware solutions are easier said than done, and hackers know it.After experiencing an initial ransomware attack, organizations need time to assess their security posture, determine what the right tools are to deploy, and then find the budget to pay. The ransomware gangs know this and this is the main reason why they attack so quickly, “said Lior Div, CEO and co-founder of Cybereason.
The main conclusions of the study are as follows:
• A weak supply chain leads to ransomware attacks: Nearly two-thirds (61%) of companies in France indicate (compared to 64% worldwide) that a ransomware gang has entered their network through one of their suppliers or business partners. Hence the basic need to secure the entire ecosystem from end to end.
• Ransomware attacks lead to layoffs: Nearly 45% of French organizations lay off staff as a result of the attack. It also represents the biggest consequence of ransomware attacks for French companies (in the face of loss of revenue or the fact of simply leaving the business).
• Ransomware attacks lead to the risk of executive resignation: 35% of companies have experienced executive resignations following a ransomware attack.
• The price of ransom rises with each attack: Nearly 70% of businesses pay higher demand for ransom a second time.
• Ransomware Attacks Cause Business Disruption … Nearly a third (31%) of businesses are forced to temporarily or permanently suspend operations following a ransomware attack.
• Even a real business loss: The health (50%), finance (55%), HR (60%) and manufacturing (62%) sectors are the sectors most affected by business losses . The travel and transportation sectors, as well as the sales, media and marketing sectors, meanwhile, indicated that they did not experience any business loss following the ransomware attack.
• Organizations don’t have the right tools: 60% of organizations admit that ransomware gangs were present in their network for up to six months before they discovered them. A search that highlights the pattern of double extortion where cybercriminals first steal sensitive data, then threaten to make it public if the ransom demand is not paid.
• The issue of cyber insurance: 94% of French companies surveyed indicate that they have cyber insurance, especially within companies with more than 1,000 employees and mainly in the manufacturing, retail and transport sectors (100 % of company respondents) but also education and health (at 91% and 83%)
• 99% of French companies surveyed indicated that their cyber insurance effectively covered the damage associated with the attack.
• 59% of companies surveyed say they lost between € 0.9 million and € 4.499 million following a ransomware attack.
• The majority of businesses that paid a ransom (47%) did so because they did not back up their data and believed it was the best way to get back into business as soon as possible. Human Resources companies and the education sector are the companies most affected by this lack of safeguards (100% and 75% respectively)
Cybereason is committed to working with defenders to end ransomware attacks on endpoints, across the enterprise, and wherever the battle is fought. Click here to learn more about ransomware defense or schedule a demo today to see how your organization can benefit from an operations-centric security approach.
Survey Method The survey was conducted by Censuswide in April 2022 on behalf of Cybereason. 1,456 cybersecurity professionals took part in the survey, including in the US, UK, Japan, Germany, France, Italy, South Africa, United Arab Emirates and Singapore. The main industries covered by the study are: financial services, public administration, retail, manufacturing, healthcare and legal services.