In 2024, the average ransom in a ransomware attack was over $2.5 million, about a $1 million increase from 2023. While law enforcement and cybersecurity experts recommend you do not pay the ransom (cybercriminals aren't exactly people of their word and likely won't give back your data), many companies will feel trapped and pressured into giving in. Paying such a ransom could instantly destroy a business, especially if you're a small business. In a recent report, around 58% of businesses had to close their doors in 2024 after a ransomware event.
Ransomware costs don’t just stop at the prospect of paying a ransom, either. Other implicated costs add up quickly:
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Downtime and lost productivity: When systems are totally shut down, operations come to a grinding halt. Depending on the severity of an attack, the average downtime from ransomware can span several weeks.
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Incident response and recovery: A ransomware attack can stretch your IT team to the limit. This effort is expensive, from working overtime to contain the breach and remove the ransomware to restoring data. And that's if you have an IT with the expertise to do all this. If you don't, you'll need to hire externally, driving those costs through the roof.
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Regulatory fines and legal fees: The last thing a business wants is issues with government entities or lawsuits from affected customers or partners. Failure to comply with data protection laws can lead to hefty fines and legal fees.
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Brand and reputational damage: Businesses work hard on their brand and reputation. Ransomware attacks have long-lasting effects on the public's perception of your business, leading to potential lost revenue and high customer churn.
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Higher cyber insurance costs: Just like a car wreck can drive your premiums up, so can a ransomware attack. Ransomware often results in higher cyber insurance premiums or outright denials of coverage.
In addition to all these risks that result in monetary implications, we haven't even touched one key element: data. Even with a data backup strategy, data integrity can be compromised, permanently losing valuable information.