In 2019, multinational manufacturers and U.S. city and county governments spent $176 million on costs related to ransomware attacks , including investigating the attack, rebuilding networks, restoring backups, paying ransoms to hackers , and implementing preventative measures against future attacks.
But the United States is not alone in its costly battle against this type of malware. In early June, Honda confirmed that a suspected ransomware attack prevented company employees around the world from accessing servers and using email and other internal systems.
According to Cybersecurity Ventures, the latest estimate is that global costs related to ransomware damage will reach $20 billion in 2021, a cost 57 times higher than in 2015.
Average cost of ransom payments
In Q1 2020, the average ransomware ransom payment by latvia whatsapp data businesses was $111,605 (up 33% from Q4 2019). However, this number is very high because it includes exceptionally high ransom payments. The average ransom payment is closer to $44,000 , which still has a significant impact on a company’s bottom line.
How many companies pay the ransom?
Although security experts generally recommend that companies do not pay the ransom , the reality is that among the least convenient options for the company, paying is sometimes the most attractive. In 2019, 45% of companies paid the ransom demanded by their attackers, compared to 39% in 2018.
But what happens if you don't pay the ransom? A Norwegian company decided to find out, in an initiative that became the gold standard for ransomware responses.
When global aluminium producer Norsk Hydro received its ransom note, 22,000 computers at 170 locations in 40 countries abruptly stopped working, and 35,000 employees had to put pen to paper to continue working as in the old days.
It took many months and more than $56 million to recover, but Norsk Hydro did not give in to the attackers’ demands. Instead, the company’s honest and transparent approach to resolving what could have been a public relations nightmare boosted its positive reputation among customers and stakeholders.
The cost of downtime caused by ransomware
Today’s users demand almost 100% uptime. Anything less could significantly damage your business and reputation. Business disruption is one of the biggest costs associated with a ransomware attack , and in Q1 2020, businesses hit by ransomware experienced an average of 15 days of downtime.
This figure was slightly lower than the previous quarter, but few companies can easily withstand two weeks of downtime and loss of productivity.
Disaster Recovery
In the event of a ransomware attack, a comprehensive disaster recovery plan could be the only barrier standing between your business and disaster. Even paying the ransom is no guarantee that business-critical files can be saved, so regularly backing up systems and storing them off-network is critical to recovery.
While we all know the importance of these backups, Storage Magazine reports that over 34% of companies test them. It’s a huge part of data security that’s left to chance.
When you consider studies showing that nearly 60% of consumers will likely avoid doing business with you if your company is the victim of a cyberattack this year, you realize that you can't go without having a solid ransomware protection plan in place before you need it.
If these ransomware statistics surprise you, it’s time to take a closer look at your cybersecurity strategy and start making adjustments. For help getting started, download the Guide to a Ransomware-Free Future , which provides tips and tools to protect your organization against increasingly sophisticated ransomware threats.