AlphaXDR Summarised Cybersecurity Report
Ransomware Payment Trends (2024)
- Average Ransom Payment: The average ransom payment in Q3 2024 was $5.5 million, a significant increase from $4.4 million in Q1 2023 13. This development mirrors a broader shift in the ransomware battlefield, in which attackers seek greater ransoms, frequently targeting larger businesses with more considerable financial resources.
- Ransom Payment Frequency: Despite growing knowledge and criticism from law enforcement and cybersecurity professionals, the number of organizations electing to pay ransoms has increased. In Q1 2024, nearly 32% of ransomware victims chose to pay, representing a significant rise over prior years. However, the chances of successfully retrieving data after payment remain slim, with polls estimating recovery rates of less than 50%
Ransomware Attacks by Industry
- Healthcare: The healthcare sector is presently the most vulnerable to ransomware attacks, with 67% of healthcare businesses reporting occurrences
in 2024, up from 60% in 2023. The economic effect is enormous, with healthcare firms incurring an average loss of $1.8 million owing to recovery expenses, delay, and reputational harm. - Manufacturing: In the industrial sector, 65% of businesses reported being attacked by ransomware in 2024, up from 56% the previous year. These assaults frequently cause significant manufacturing delays, impacting supply chains and operational efficiency.
- Retail: Ransomware attacks have also increased in the retail industry, with 16% of retailers attacked in the last year. Notably, there has been a 30% surge in assaults targeting online payment platforms and point-of-sale systems, indicating weaknesses in digital transaction procedures.
Overall, ransomware assaults are increasing across these areas, with healthcare suffering the most severe impacts.
Data Exfiltration and Double Extortion
- Double Extortion Attacks: The strategy known as double extortion, or data exfiltration, was used in over half of ransomware assaults in 2024.
Cybercriminals use these attacks to both encrypt and steal the victim’s data, threatening to make it public if the ransom is not paid. Due to the potential for serious financial and reputational repercussions from data disclosure, this tendency has greatly increased the pressure on corporations to comply with ransom demands. - Data Leaks: Data leaks affected 45% of companies who paid a ransom in 2024, indicating a sharp increase in the amount of data exposed by ransomware attacks. Sensitive information is regularly made public by attackers for malevolent or extortion-related reasons. This pattern highlights how ransomware gangs are changing their strategies and using data leaks more frequently as a form of coercion. Important Data Ransom Payments: In 2024, the average ransom amount was $2.73 million, which is a significant rise over the previous two years. Data Recovery: 97% of firms whose data was encrypted were able to retrieve it, despite the exorbitant ransom fees. Impact of the Attack: Businesses that paid ransom frequently experienced follow-up assaults, with 80% of victims reporting another incident soon after
- Ransomware Strategy: Ransomware attackers are increasingly employing data leaks as a tactic to coerce victims into making larger payments. RaaS, or ransomware-as-a-service: The growth of ransomware assaults has been made easier by the emergence of RaaS, and many organizations are actively attempting to extort victims. Industry Vulnerability Attacked Industries: Attackers frequently release private patient and financial information, making the healthcare and financial services industries one of the most frequently attacked industries. According to these statistics, paying the ransom does not ensure data security or recovery, which is a concerning trend in ransomware assaults.
Ransomware Variants
- LockBit: According to current statistics, the LockBit ransomware family is in fact the most common variety in 2024, making about 22% of all ransomware assaults worldwide. This organization is known for its aggressive strategies and effective assault techniques, and it usually targets high-value industries including government, healthcare, and finance.
Important Data
Proliferation: In the first half of 2024, 22% of ransomware assaults are caused by
LockBit. Target Sectors: Because ransomware attacks take use of antiquated IT systems and inadequate password protection, the healthcare industry has been particularly affected. Attack Trends: From January to June 2024, 2,321 ransomware occurrences were recorded, indicating a modest rise in assaults overall and a steady pattern with the previous year. - Conti: Although the Conti ransomware was allegedly shut down in 2023, its infrastructure and active affiliates make it a serious threat. Targeting companies with annual sales of above $100 million, the gang gained notoriety for attacking over 900 victims worldwide, including 47 U.S. states. The Conti organization was disbanded, but many of its affiliates continue to employ its methods and resources, which results in continuous ransomware outbreaks. For instance, the Hoboken government experienced a ransomware attack in late 2024, which was attributed to hackers with ties to Conti. A $10 million reward is being offered by the US government for information that leads to the arrest of Conti members, recognizing the threat posed by its remnants. Moreover, the Cybersecurity and infrastructure Security Agency (CISA) continues to publish alerts about the group’s techniques, indicating that they are still being used by other cybercriminals.
- REvil: REvil was once one of the largest and most sophisticated ransomware groups. After a law enforcement takedown in 2021, parts of the group have reformed and continued launching high-profile attacks.
Ransomware Victim Demographics
- Size of Companies Targeted: Ransomware attacks against small and mediumsized enterprises (SMBs) are on the rise in 2024; around 60% of assaults target
companies with less than 1,000 employees. These SMBs frequently lack the resources needed to recover financially from such catastrophes and to properly protect against sophisticated cyberattacks. Size of Companies Targeted Small firms: Small firms were the target of 55.8% of
recorded ransomware outbreaks, indicating their susceptibility. Medium-Sized Businesses: 85% of all ransomware targets are SMBs, including
medium-sized ones. Bigger Businesses: Even with greater resources, big businesses are still desirable targets. 40% of companies with 10,000 or more workers in 2024 said they had been the victim of a ransomware assault. - Impact on Large Enterprises: Large Enterprises: Attackers frequently target larger businesses because of their vital infrastructure and vast data collections, which makes them profitable. Recovery Costs: Large businesses have a disproportionately high financial burden of recovering from ransomware attacks, with expenses frequently amounting to millions of dollars.
Financial Impact of Ransomware
- Total Global Cost: Cybersecurity Ventures estimates that the overall cost of ransomware in 2024 would surpass $42 billion, including ransom payments, lost productivity, legal expenses, recovery costs, and long-term reputational harm.
- Ransomware Payments and Profitability: Around 37% of ransomware victims paid a ransom in 2024, a record low that suggests a change in how organizations respond to ransomware assaults. greater spending on security and backup plans, together with greater law enforcement monitoring, are the reasons for this drop in payment rates. The most recent data, which indicates a lesser percentage of victims choosing to pay 56, contradicts the statistic of 30% paying ransoms, even as Coveware’s findings reveal that a sizable number of enterprises still consider doing so because of operational interruptions. An overview of the financial impact of the total global cost in 2024: Four and a
half billion dollar. Approximately 37 percent of victims paid ransom. The financial ramifications for businesses dealing with ransomware and its
changing landscape are reflected in this data.
Cyber Insurance
- Increase in Cyber Insurance Claims: The surge in ransomware attacks in 2024 has led to a notable spike in cyber insurance claims. While the overall severity of claims increased by 14%, the average loss for ransomware claims reached $353,000, marking a 68% rise from the previous year. Because insurers now demand businesses to install minimal cybersecurity safeguards in order to qualify for coverage, the cost of cyber insurance premiums for policies covering ransomware has increased by 25% to 40%.
Law Enforcement and Global Impact
- FBI’s Role in Ransomware: In late 2024, the FBI’s Internet Crime Complaint Center (IC3) received more than 40,000 complaints about ransomware, with over $1.8 billion in damages reported overall. Unreported occurrences or those in which businesses choose not to report the assault are not included in this number.
- Global Scope of Attacks: In 2024, ransomware assaults against European enterprises increased by 50% over the previous year, according to the European Union Agency for Cybersecurity (ENISA). This increase was especially noticeable in assaults targeting public-sector organizations and government agencies. All things considered, the state of ransomware attacks and cyber insurance in 2024 shows a rising trend of more claims and monetary losses, as well as more regulatory scrutiny and demands for cybersecurity measures
Conclusion
The situation of ransomware attacks in 2024 demonstrates a concerning increase in both the frequency and financial cost of cybercrime. With average ransom payments at an all-time high and assaults increasingly targeting essential areas including as healthcare, manufacturing, and retail, businesses face unprecedented dangers. The rise of double extortion methods, data leaks, and the rising danger of Ransomware-asa-Service (RaaS) are exacerbating the situation, putting enormous pressure on enterprises to balance recovery costs with operational continuity. Despite increased awareness and tighter cybersecurity safeguards, the growing frequency of assaults on SMBs and large corporations highlights the vulnerability of firms of all sizes. The financial toll is enormous, with ransomware-related expenditures predicted to top $42 billion globally by 2024, coupled with a significant surge in cyber insurance claims. While many firms are increasing their investments in cyber protection, the ongoing growth in cybercriminal activity demonstrates that no industry is
immune. In this quickly changing threat landscape, organizations must not only increase their security postures but also prepare for possible attacks by implementing robust backup systems, incident response strategies, and cyber insurance to reduce financial harm. Collaboration with law enforcement and the broader cybersecurity community will be critical in tackling the rising danger of ransomware. Finally, while ransomware was a huge challenge in 2024, now a careful preparation, knowledge, and resilience tactics may assist organizations in navigating the difficult and costly world of cyber threats.
