Ransomware incidents in the US in 2023 resulted in a significant number of lawsuits, with data breaches being the primary reason for legal action.
Description
In 2023, ransomware incidents in the US led to lawsuits in approximately 18% of cases, with a total of 355 lawsuits filed following over 3000 confirmed attacks [2]. The number of lawsuits is expected to rise as data breach notifications for previous incidents continue to be issued. Of the completed cases [2] [3], around 59% were successful [2] [3], resulting in outcomes such as data breach settlements [3], fines for inadequate system safeguards, or out-of-court settlements [3]. Data breaches affected 283.3 million individual records in attacks where lawsuits were filed [3]. The healthcare and finance sectors saw the highest number of lawsuits [3], reflecting the largest volumes of breached records [3]. Organizations paid over $245 million in out-of-court settlements [3], with an average settlement amount of $2.2 million [1] [2]. Regulatory fines totaling nearly $10 million were also imposed on organizations for deficiencies before [3], during [3], or after ransomware attacks [1] [2] [3].
Conclusion
The impact of ransomware incidents in 2023 was significant, with organizations facing financial penalties and legal consequences for data breaches. Moving forward, it is crucial for organizations to enhance their cybersecurity measures to prevent future attacks and mitigate potential damages. The increasing number of lawsuits and regulatory fines underscores the importance of proactive cybersecurity strategies to safeguard sensitive data and protect against ransomware threats.
References
[1] https://betanews.com/2024/05/01/nearly-1-in-5-ransomware-attacks-results-in-a-lawsuit/
[2] https://www.comparitech.com/blog/vpn-privacy/ransomware-attacks-lawsuits/
[3] https://www.infosecurity-magazine.com/news/ransomware-attacks-trigger-lawsuit/
