Introduction
In recent years, ransomware attacks have increasingly disrupted organizations worldwide [1] [3] [5], leading to significant operational, financial [1] [2] [3] [5] [6], and reputational damage [1] [5]. This report examines the impact of ransomware on organizations, highlighting trends in attack frequency, recovery efforts, and the effectiveness of current defense strategies.
Description
In 2024, 58% of organizations affected by ransomware were compelled to shut down operations for recovery [2] [6], marking a notable increase from 45% in 2021 [1] [2] [6]. The financial impact of these attacks is significant, with 40% of organizations reporting substantial revenue losses [1], up from 22% in the previous year [5]. Brand damage has also escalated, affecting 35% of organizations in 2024 [6], compared to 21% in 2021 [2] [6]. Additionally, 41% of organizations experienced customer attrition [1] [5], and 40% had to reduce their workforce due to the repercussions of these attacks. Ransomware incidents targeted 25% of critical systems, leading to an average downtime of 12 hours [1] [5].
Organizations demonstrated improved recovery times [2], with the average containment and remediation of the largest ransomware attack taking 132 hours and involving 17.5 personnel [2], resulting in an average cost of $146,685 [2] [6]. This marks a decrease from 190 hours and an average cost of $168,910 in 2021. Reputation and brand damage have emerged as the primary financial costs associated with ransomware attacks [2], surpassing legal and regulatory costs noted in previous years [2].
Despite these improvements, a lack of resilience is evident [1] [3] [5], as 44% of organizations struggle to quickly identify and contain attacks [1] [3] [5], and only 27% have implemented microsegmentation [1] [3] [4] [5], a crucial control for preventing the spread of breaches [1] [5]. Cloud and hybrid environments are particularly vulnerable [3], with 35% citing a lack of visibility as a barrier to effective response [1] [3] [5]. Desktops and laptops remain the most compromised devices [1] [3] [4] [5], with phishing being the primary delivery method for ransomware [6], accounting for 45% of incidents [6], followed by Remote Desktop Protocol (RDP) compromises at 32%. Attackers often exploit unpatched systems [3] [5], with over half of lateral movements attributed to this vulnerability [3], an increase from 33% in 2021 [1] [2] [3] [5] [6].
The study surveyed 2,547 IT and cybersecurity practitioners from the US [2] [6], UK [1] [2] [5] [6], Germany [1] [2] [5] [6], France [1] [2] [5] [6], Australia [1] [2] [5] [6], and Japan [1] [2] [5] [6], all responsible for managing ransomware incidents [2]. Despite allocating 29% of IT budgets to ransomware defense, 88% of organizations have still fallen victim to attacks [1] [3], and only 13% could recover all impacted data [1] [3] [5]. Among the 49% of victims who did not pay the ransom, reasons included non-critical data (49%) [6], effective backup strategies (48%) [6], and company policy (47%) [6]. Reporting of ransomware incidents remains low [1] [3] [5], with only 28% informing law enforcement [3], often due to fears of publicity (39%) [3], payment deadlines (38%) [1] [4] [5] [6], and concerns about retaliation (38%) [1] [5]. While employee awareness of social engineering has improved [1] [3] [5], insider negligence remains a significant challenge [1] [3] [5]. Adoption of AI for ransomware defense is slow [3], with only 42% utilizing it [3], and 51% expressing concern over potential AI-generated attacks [3] [5].
Furthermore, 54% of organizations expressed confidence in their ability to mitigate ransomware risks [4], with multi-factor authentication (MFA) and automated patching/updates being the top technologies employed [4], at 37% and 36% [4], respectively [4]. More than half (52%) of respondents believe that having a full and accurate backup is a sufficient defense against ransomware [4], highlighting a disconnect between cybersecurity budget allocations and the technologies necessary to effectively counter these attacks [4].
Conclusion
The increasing prevalence of ransomware attacks underscores the urgent need for organizations to enhance their cybersecurity measures. While some improvements in recovery times and cost management have been observed, significant vulnerabilities remain, particularly in cloud and hybrid environments. Organizations must prioritize comprehensive strategies, including microsegmentation, AI adoption, and robust backup systems, to mitigate the risks and impacts of ransomware. As attackers continue to evolve their tactics, staying ahead of potential threats will be crucial for safeguarding organizational integrity and resilience.
References
[1] https://www.manilatimes.net/2025/01/28/tmt-newswire/globenewswire/illumio-research-reveals-58-of-companies-hit-with-ransomware-have-been-forced-to-halt-operations/2045958
[2] https://www.infosecurity-magazine.com/news/ransomware-victims-shut-operations/
[3] https://www.illumio.com/news/cost-of-ransomware-study
[4] https://securityboulevard.com/2025/01/survey-surfaces-extent-of-financial-damage-caused-by-ransomware-scourge/
[5] https://www.globenewswire.com/news-release/2025/01/28/3016416/0/en/Illumio-Research-Reveals-58-of-Companies-Hit-With-Ransomware-Have-Been-Forced-to-Halt-Operations.html
[6] https://ciso2ciso.com/58-of-ransomware-victims-forced-to-shut-down-operations-source-www-infosecurity-magazine-com/
