Paying the Ransom in Response to a Ransomware Attack can Sometimes Backfire

Nolan Goldberg and Margaret Ukwu of Proskauer write:

A new study by Hiscox, a privacy and cyber security insurance company, sheds light on additional practical concerns that should be taken into account in that balancing of potential risks and benefits.

Hiscox released its sixth annual Cyber Readiness Report 2022. In it, Hiscox raises a number of interesting findings:

Ransomware attacks have risen approximately 19%, which is up from 16% from last year.

Approximately 60% of surveyed companies paid a ransom in response to a successful ransomware attack.

Of the companies that paid a ransom, approximately half of those ultimately paid ransoms on multiple occasions after suffering additional successful attacks.

In the United States specifically, the number of ransomware attacks have stayed generally the same from 2021 to 2022, but the amount paid has increased. More victims paid attackers the ransom amount this year than last.

Only 59% of companies that paid the ransom successfully recovered their data.

29% of companies who paid the ransom still had their data leaked.