Ransomware Costs More than You Think

Ransomware attacks aren't just an annoyance you can shoo away like a bug—they're invasive swarms that can infect your entire digital ecosystem. 

The financial nightmare caused by a ransomware attack isn't limited to paying a ransom—the financial implications spread through the cost of downtime and lasting reputational damage. 

The only way to avoid a ransomware attack is to understand them, be proactive, and protect yourself. In this guide, we break down the real cost of ransomware attacks for businesses so you can be better prepared to defend your organization.

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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.

The cost of a ransomware attack doesn't just stop at the prospect of paying a ransom, either. Other implicated costs add up quickly: 

• 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 can span several weeks. 
• 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. 
• 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. 
• 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. 
• 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.

While total costs may vary depending on industry and company size, the total financial, post-mortem cost of a ransomware attack (not including reputational damage) has exceeded $4.5 million, and this is only expected to go up in the future. These ruthless attacks hurt businesses of all shapes and sizes but are disproportionately devastating to non-enterprise companies. Some businesses never recover from a ransomware attack and are forced to shut down.

Cybercriminals are always evolving, and so are their ransom demands. Experts predict that ransomware attack costs will skyrocket in the future, exceeding $265 billion a year by 2031. As threat actors refine their attacks, businesses that become complacent and not proactive with their cyber security strategy will likely find themselves paying steeper prices if they are unlucky enough to experience a ransomware attack. For smaller businesses, the ultimate price may be bankruptcy and closing up shop.

When it comes to ransomware, waiting until after an attack isn't a strategy—it's a disaster. The best defense is catching these threats before they can spread. Huntress' Ransomware Canaries are an early warning system that detects ransomware activity before it locks down your business. Combined with Huntress Managed EDR, this proactive approach helps you stay ahead of cybercriminals and shut down attacks before they do real damage.

Don't wait until it's too late. See how Huntress helps you detect and stop ransomware in its tracks with a free trial or demo today.