80% of ransomware victims pay ransom, says report

In Short:
– Cyber attacks increasingly target businesses, with 80% of ransomware victims opting to pay ransoms.
– SMEs are often affected, with only 60% recovering data after paying ransoms amidst rising cyber insurance costs.

Cyber attacks are increasingly targeting sensitive business data, with many companies paying ransoms. A report from Hiscox indicates that 80% of businesses affected by ransomware over the past year opted to pay.The annual Cyber Readiness Report highlights a concerning trend in ransomware attacks against well-known companies, including Marks and Spencer, the Co-op, and Jaguar Land Rover.

The latter recently received a £1.5bn government loan guarantee aimed at protecting its supply chain, which includes numerous small firms.

Many victims of cyber attacks are small and medium-sized enterprises (SMEs), which often require assistance to recover. Hiscox reported that while 27% of the surveyed 5,750 SMEs faced ransomware attacks, only 60% that paid the ransom managed to recover their data.

Impact on Firms

The broader findings revealed that nearly 60% experienced some form of cyber attack, with numerous businesses attributing their vulnerabilities to artificial intelligence.

Companies face not only financial repercussions, including fines and lost revenue, but also damage to their reputations. Eddie Lamb of Hiscox warned against underestimating the severe consequences of cyber attacks on all business sizes.

Jaguar Land Rover was reportedly finalising cyber insurance when it was attacked, incurring significant losses. Industry experts note that the rising costs of comprehensive cyber insurance policies may leave many firms unprotected. The cyber insurance market is growing, responding to the high-profile impacts experienced by businesses like M&S, which anticipates recovering losses through insurance after its own ransomware incident.