Ransomware, a form of malicious software, kidnaps an organization’s data, encrypts it, and demands a ransom for its release. This modern-day digital extortion has historical roots in the practice of demanding ransom for kidnapped individuals, a method used by pirates and bandits for centuries. The digital age has transformed this age-old crime into a significant threat to all manner of organizations from corporate giants to small charities.
In 2023, ransomware has been a relentless adversary for organizations worldwide, causing significant IT outages and data loss. According to the Veeam 2024 Ransomware Trends Report, 41% of data is compromised during cyberattacks, and only 57% of this compromised data is recoverable. This stark reality leaves nearly half of the affected data irretrievable, posing substantial business risks.
Dave Russell, Senior Vice President, Head of Strategy at Veeam, emphasized the pervasive nature of ransomware, which impacted three out of four organizations last year. He highlighted that while AI advancements are bolstering security measures, they are also contributing to the increased sophistication of attacks. Russell stressed organizations need to enhance their cyber resiliency and prioritize rapid, clean data recovery. “Organizations must take action to ensure cyber resiliency and acknowledge that rapid, clean recovery matters most,” Russell stated.
The report, which analyzed responses from 1,200 executives, information security professionals, and backup administrators, also illuminates the human toll of cyberattacks. Following an attack, 45% of respondents reported increased workloads, and 40% experienced heightened stress levels. Additionally, 26% of organizations faced productivity losses, and 25% encountered disruptions in internal or customer-related services.
Improvement Needed
A significant finding is the misalignment between backup and cyber teams. Despite a focus on cyber-preparedness, 63% of organizations reported a lack of synchronization between these teams. Moreover, 61% of security professionals and 75% of backup administrators believe that significant improvements or complete system overhauls are necessary.
The report reveals that paying the ransom does not guarantee data recovery. Alarmingly, 81% of organizations paid the ransom, yet one-third still could not recover their data. Furthermore, despite many organizations having cyber insurance, the financial impact of attacks remains severe. Only 62% of the total costs associated with an attack are recoverable through insurance or other means.
To combat these challenges, organizations are increasingly turning to immutable backups. The report notes that 75% of organizations now utilize on-premises disks with hardening capabilities and 85% use cloud storage with immutability features.
Key findings from the Veeam 2024 Ransomware Trends Report include:
- Cloud and on-premises data are equally vulnerable to attacks.
- Nearly two-thirds (63%) of organizations risk reintroducing infections during data recovery.
- Organizations recognize the importance of immutability, with 75% using hardened on-premises disks and 85% utilizing immutable cloud storage.
- Only 2% of organizations lack a pre-identified incident response team, and only 3% have teams without a playbook.
The Veeam 2024 Ransomware Trends Report highlights the persistent threat of ransomware, the significant human and financial toll on organizations, and the critical need for improved cyber resiliency and data recovery strategies.
Source: Ransomware Continues to Cause Mayhem as Victims are Unable to Recover 43% of Affected Data.
Other News: Remote Access Drives 58% of Ransomware Attacks in 2023, At-Bay Report(Opens in a new browser tab)