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<h1>Ransomware Recovery Cost Reaches Nearly $2 Million, More Than Doubling in a Year, Sophos Survey Shows</h1>
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<h2>Sophos “State of Ransomware 2021” Reveals That Only 8% of Businesses That Pay a Ransom Get Back All of Their Data<br><br>54% Say Cyberattacks Are Too Advanced for Their IT Team to Handle on Their Own</h2>
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<p><strong>OXFORD, U.K.</strong> – <strong>April 27, 2021</strong><strong> </strong>–<strong> </strong><a href="https://www.sophos.com/en-us.aspx">Sophos</a>, a global leader in next-generation cybersecurity, today announced the
findings of its global survey, “<a href="https://www.sophos.com/ransomware2021">The State of Ransomware 2021</a>,” which reveals that the average total cost of recovery from a ransomware attack has more than doubled in a year,
increasing from $761,106 in 2020 to $1.85 million in 2021. The average ransom paid is $170,404. The global findings also show that only 8% of organizations managed to get back all of their data after paying a ransom, with 29% getting
back no more than half of their data. </p>
<p>The survey polled 5,400 IT decision makers in mid-sized organizations in 30 countries across Europe, the Americas, Asia-Pacific and Central Asia, the Middle East, and Africa. </p>
<p>While the number of organizations that experienced a ransomware attack fell from <a href="https://news.sophos.com/en-us/2020/05/12/the-state-of-ransomware-2020/" target="_blank">51% of respondents surveyed in 2020</a> to 37% in 2021,
and fewer organizations suffered data encryption as the result of a significant attack (54% in 2021 compared to 73% in 2020), the new survey results reveal worrying upward trends, particularly in terms of the impact of a ransomware
attack.</p>
<p>“The apparent decline in the number of organizations being hit by ransomware is good news, but it is tempered by the fact that this is likely to reflect, at least in part, changes in attacker behaviors,” said Chester Wisniewski,
principal research scientist, Sophos. “We’ve seen attackers move from larger scale, generic, automated attacks to more targeted attacks that include human hands-on-keyboard hacking. While the overall number of attacks is lower as a
result, our experience shows that the potential for damage from these more advanced and complex targeted attacks is much higher. Such attacks are also harder to recover from, and we see this reflected in the survey in the doubling of
overall remediation costs.”</p>
<p>The main findings of the State of Ransomware 2021 global survey include:</p>
<ul>
<li><strong>The average cost of remediating a ransomware attack more than doubled in the last 12 months</strong>. Remediation costs, including business downtime, lost orders, operational costs, and more, grew from an average of $761,106
in 2020 to $1.85 million in 2021. This means that the average cost of recovering from a ransomware attack is now 10 times the size of the ransom payment, on average</li>
<li><strong>The average ransom paid was $170,404</strong>. While $3.2 million was the highest payment out of those surveyed, the most common payment was $10,000. Ten organizations paid ransoms of $1 million or more</li>
<li><strong>The number of organizations that paid the ransom increased</strong> from 26% in 2020 to 32% in 2021, although fewer than one in 10 (8%) managed to get back all of their data</li>
</ul>
<p>“The findings confirm the brutal truth that when it comes to ransomware, it doesn’t pay to pay. Despite more organizations opting to pay a ransom, only a tiny minority of those who paid got back all their data,” said Wisniewski. “This
could be in part because using decryption keys to recover information can be complicated. What’s more, there’s no guarantee of success. For instance, as we saw recently with
<a href="https://news.sophos.com/en-us/2021/03/15/dearcry-ransomware-attacks-exploit-exchange-server-vulnerabilities/" target="_blank">DearCry</a> and
<a href="https://news.sophos.com/en-us/2021/03/23/black-kingdom/" target="_blank">Black Kingdom</a> ransomware, attacks launched with low quality or hastily compiled code and techniques can make data recovery difficult, if not
impossible.”</p>
<ul>
<li><strong>More than half (54%) of respondents </strong>believe cyberattacks are now too advanced for their IT team to handle on their own <br>
</li>
<li><strong>Extortion without encryption is on the rise</strong>. A small, but important 7% said that their data was not encrypted, but they were held to ransom anyway, possibly because the attackers had managed to steal their
information. In 2020, this figure was 3%</li>
</ul>
<p>“Recovering from a ransomware attack can take years and is about so much more than just decrypting and restoring data,” said Wisniewski. “Whole systems need to be rebuilt from the ground up and then there is the operational downtime
and customer impact to consider, and much more. Further, the definition of what constitutes a ‘ransomware’ attack is evolving. For a small, but significant minority of respondents, the attacks involved payment demands without data
encryption. This could be because they had anti-ransomware technologies in place to block the encryption stage or because the attackers simply chose not to encrypt the data. It is likely that the attackers were demanding payment in
return for not leaking stolen information online. A recent <a href="https://www.bleepingcomputer.com/news/security/global-accellion-data-breaches-linked-to-clop-ransomware-gang/" target="_blank">example</a> of this approach involved the
Clop ransomware gang and a known financially-motivated threat actor hitting around a dozen alleged victims with extortion-only attacks. </p>
<p>“In short, it is more important than ever to protect against adversaries at the door, before they get a chance to take hold and unfold their increasingly multi-faceted attacks. Fortunately, if organizations are attacked, they don’t
have to face this challenge alone. Support is available 24/7 in the form of external security operations centers, human-led threat hunting and
<a href="https://www.sophos.com/en-us/products/managed-threat-response/rapid-response.aspx" target="_blank">incident response services</a>.” </p>
<p>Sophos recommends the following six best practices to help defend against ransomware and related cyberattacks:</p>
<ol>
<li><strong>Assume you will be hit</strong>. Ransomware remains highly prevalent. No sector, country or organization size is immune from the risk. It’s better to be prepared, but not hit, rather than the other way round</li>
<li><strong>Make backups and keep a copy offline</strong>. Backups are the main method organizations surveyed used to recover their data after an attack. Opt for the industry standard approach of 3:2:1 (three sets of backups, using two
different media, one of which is kept offline)</li>
<li><strong>Deploy layered protection</strong>. As more ransomware attacks also involve extortion, it is more important than ever to keep adversaries out in the first place. Use layered protection to block attackers at as many points as
possible across an estate</li>
<li><strong>Combine human experts and anti-ransomware technology</strong>. The key to stopping ransomware is defense in depth that combines dedicated anti-ransomware technology and human-led threat hunting. Technology provides the scale
and automation an organization needs, while <a href="https://www.sophos.com/en-us/products/managed-threat-response.aspx">human experts are best able to detect</a> the tell-tale tactics, techniques and procedures that indicate an
attacker is attempting to get into the environment. If you don’t have the skills in house, look at enlisting the support of a specialist cybersecurity company – Security Operation Centers (SOCs) are now realistic options for
organizations of all sizes </li>
<li><strong>Don’t pay the ransom</strong>. Easy to say, but far less easy to do when an organization has ground to a halt due to a ransomware attack. Independent of any ethical considerations, paying the ransom is an ineffective way to
get data back. If you do decide to pay, bear in mind that the adversaries will restore, on average, only two-thirds of your files</li>
<li><strong>Have a malware recovery plan</strong>. The best way to stop a cyberattack from turning into a full breach is to prepare in advance. Organizations that fall victim to an attack often realize they could have avoided
significant financial loss and disruption, if they had an incident response plan in place</li>
</ol>
<p>The State of Ransomware 2021 survey report is available in full on <a href="http://www.sophos.com/ransomware2021">Sophos.com</a>. </p>
<p>The State of Ransomware 2021 survey was conducted by Vanson Bourne, an independent specialist in market research, in January and February 2021. The survey interviewed 5,400 IT decision makers in 30 countries, in the US, Canada, Brazil,
Chile, Colombia, Mexico, Austria, France, Germany, the UK, Italy, the Netherlands, Belgium, Spain, Sweden, Switzerland, Poland, the Czech Republic, Turkey, Israel, UAE, Saudi Arabia, India, Nigeria, South Africa, Australia, Japan,
Singapore, Malaysia, and the Philippines. All respondents were from organizations with between 100 and 5,000 employees.</p>
<p>Sophos <a href="https://www.sophos.com/en-us/products/endpoint-antivirus.aspx">Intercept X</a> protects users by detecting the actions and behaviors of ransomware and other attacks.</p>
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<h3 class="sophos-shield"><em class="icon-sophos-shield"></em> About Sophos</h3>
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<p>Sophos is a worldwide leader in next-generation cybersecurity, protecting more than 500,000 organizations and millions of consumers in more than 150 countries from today’s most advanced cyberthreats. Powered by threat intelligence, AI
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RANSOMWARE RECOVERY COST REACHES NEARLY $2 MILLION, MORE THAN DOUBLING IN A
YEAR, SOPHOS SURVEY SHOWS
Sophos Press Release
SOPHOS “STATE OF RANSOMWARE 2021” REVEALS THAT ONLY 8% OF BUSINESSES THAT PAY A
RANSOM GET BACK ALL OF THEIR DATA
54% SAY CYBERATTACKS ARE TOO ADVANCED FOR THEIR IT TEAM TO HANDLE ON THEIR OWN
OXFORD, U.K. – April 27, 2021 – Sophos, a global leader in next-generation
cybersecurity, today announced the findings of its global survey, “The State of
Ransomware 2021,” which reveals that the average total cost of recovery from a
ransomware attack has more than doubled in a year, increasing from $761,106 in
2020 to $1.85 million in 2021. The average ransom paid is $170,404. The global
findings also show that only 8% of organizations managed to get back all of
their data after paying a ransom, with 29% getting back no more than half of
their data.
The survey polled 5,400 IT decision makers in mid-sized organizations in 30
countries across Europe, the Americas, Asia-Pacific and Central Asia, the Middle
East, and Africa.
While the number of organizations that experienced a ransomware attack fell from
51% of respondents surveyed in 2020 to 37% in 2021, and fewer organizations
suffered data encryption as the result of a significant attack (54% in 2021
compared to 73% in 2020), the new survey results reveal worrying upward trends,
particularly in terms of the impact of a ransomware attack.
“The apparent decline in the number of organizations being hit by ransomware is
good news, but it is tempered by the fact that this is likely to reflect, at
least in part, changes in attacker behaviors,” said Chester Wisniewski,
principal research scientist, Sophos. “We’ve seen attackers move from larger
scale, generic, automated attacks to more targeted attacks that include human
hands-on-keyboard hacking. While the overall number of attacks is lower as a
result, our experience shows that the potential for damage from these more
advanced and complex targeted attacks is much higher. Such attacks are also
harder to recover from, and we see this reflected in the survey in the doubling
of overall remediation costs.”
The main findings of the State of Ransomware 2021 global survey include:
* The average cost of remediating a ransomware attack more than doubled in the
last 12 months. Remediation costs, including business downtime, lost orders,
operational costs, and more, grew from an average of $761,106 in 2020 to
$1.85 million in 2021. This means that the average cost of recovering from a
ransomware attack is now 10 times the size of the ransom payment, on average
* The average ransom paid was $170,404. While $3.2 million was the highest
payment out of those surveyed, the most common payment was $10,000. Ten
organizations paid ransoms of $1 million or more
* The number of organizations that paid the ransom increased from 26% in 2020
to 32% in 2021, although fewer than one in 10 (8%) managed to get back all of
their data
“The findings confirm the brutal truth that when it comes to ransomware, it
doesn’t pay to pay. Despite more organizations opting to pay a ransom, only a
tiny minority of those who paid got back all their data,” said Wisniewski. “This
could be in part because using decryption keys to recover information can be
complicated. What’s more, there’s no guarantee of success. For instance, as we
saw recently with DearCry and Black Kingdom ransomware, attacks launched with
low quality or hastily compiled code and techniques can make data recovery
difficult, if not impossible.”
* More than half (54%) of respondents believe cyberattacks are now too advanced
for their IT team to handle on their own
* Extortion without encryption is on the rise. A small, but important 7% said
that their data was not encrypted, but they were held to ransom anyway,
possibly because the attackers had managed to steal their information. In
2020, this figure was 3%
“Recovering from a ransomware attack can take years and is about so much more
than just decrypting and restoring data,” said Wisniewski. “Whole systems need
to be rebuilt from the ground up and then there is the operational downtime and
customer impact to consider, and much more. Further, the definition of what
constitutes a ‘ransomware’ attack is evolving. For a small, but significant
minority of respondents, the attacks involved payment demands without data
encryption. This could be because they had anti-ransomware technologies in place
to block the encryption stage or because the attackers simply chose not to
encrypt the data. It is likely that the attackers were demanding payment in
return for not leaking stolen information online. A recent example of this
approach involved the Clop ransomware gang and a known financially-motivated
threat actor hitting around a dozen alleged victims with extortion-only attacks.
“In short, it is more important than ever to protect against adversaries at the
door, before they get a chance to take hold and unfold their increasingly
multi-faceted attacks. Fortunately, if organizations are attacked, they don’t
have to face this challenge alone. Support is available 24/7 in the form of
external security operations centers, human-led threat hunting and incident
response services.”
Sophos recommends the following six best practices to help defend against
ransomware and related cyberattacks:
1. Assume you will be hit. Ransomware remains highly prevalent. No sector,
country or organization size is immune from the risk. It’s better to be
prepared, but not hit, rather than the other way round
2. Make backups and keep a copy offline. Backups are the main method
organizations surveyed used to recover their data after an attack. Opt for
the industry standard approach of 3:2:1 (three sets of backups, using two
different media, one of which is kept offline)
3. Deploy layered protection. As more ransomware attacks also involve
extortion, it is more important than ever to keep adversaries out in the
first place. Use layered protection to block attackers at as many points as
possible across an estate
4. Combine human experts and anti-ransomware technology. The key to stopping
ransomware is defense in depth that combines dedicated anti-ransomware
technology and human-led threat hunting. Technology provides the scale and
automation an organization needs, while human experts are best able to
detect the tell-tale tactics, techniques and procedures that indicate an
attacker is attempting to get into the environment. If you don’t have the
skills in house, look at enlisting the support of a specialist cybersecurity
company – Security Operation Centers (SOCs) are now realistic options for
organizations of all sizes
5. Don’t pay the ransom. Easy to say, but far less easy to do when an
organization has ground to a halt due to a ransomware attack. Independent of
any ethical considerations, paying the ransom is an ineffective way to get
data back. If you do decide to pay, bear in mind that the adversaries will
restore, on average, only two-thirds of your files
6. Have a malware recovery plan. The best way to stop a cyberattack from
turning into a full breach is to prepare in advance. Organizations that fall
victim to an attack often realize they could have avoided significant
financial loss and disruption, if they had an incident response plan in
place
The State of Ransomware 2021 survey report is available in full on Sophos.com.
The State of Ransomware 2021 survey was conducted by Vanson Bourne, an
independent specialist in market research, in January and February 2021. The
survey interviewed 5,400 IT decision makers in 30 countries, in the US, Canada,
Brazil, Chile, Colombia, Mexico, Austria, France, Germany, the UK, Italy, the
Netherlands, Belgium, Spain, Sweden, Switzerland, Poland, the Czech Republic,
Turkey, Israel, UAE, Saudi Arabia, India, Nigeria, South Africa, Australia,
Japan, Singapore, Malaysia, and the Philippines. All respondents were from
organizations with between 100 and 5,000 employees.
Sophos Intercept X protects users by detecting the actions and behaviors of
ransomware and other attacks.
ABOUT SOPHOS
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Sophos sells its products and services through reseller partners and managed
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PRIVACY PREFERENCE CENTER
* YOUR PRIVACY
* STRICTLY NECESSARY COOKIES
* PERFORMANCE COOKIES
* FUNCTIONAL COOKIES
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YOUR PRIVACY
When you visit any website, it may store or retrieve information on your
browser, mostly in the form of cookies. This information might be about you,
your preferences or your device and is mostly used to make the site work as you
expect it to. The information does not usually directly identify you, but it can
give you a more personalized web experience. Because we respect your right to
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different category headings to find out more and change our default settings.
However, blocking some types of cookies may impact your experience of the site
and the services we are able to offer.
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STRICTLY NECESSARY COOKIES
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which amount to a request for services, such as setting your privacy
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block or alert you about these cookies, but some parts of the site will not then
work. These cookies do not store any personally identifiable information.
PERFORMANCE COOKIES
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will not be able to monitor its performance.
FUNCTIONAL COOKIES
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These cookies enable the website to provide enhanced functionality and
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TARGETING COOKIES
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relevant adverts on other sites. They do not store directly personal
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