Ransomware remains the leading cause of IT outages and downtime, with 41% of data compromised during cyberattacks, according to the latest Veeam 2024 Ransomware Trends Report. The report highlights that only 57% of compromised data is recovered, leaving organizations vulnerable to significant data loss and business disruption.

“Ransomware is endemic, impacting three out of four organizations in 2023,” said Dave Russell, Senior Vice President, Head of Strategy at Veeam. “Our report indicates that ransomware attacks will become more severe and costly than expected. Organizations must prioritize cyber resiliency and rapid, clean recovery to protect their business data.”

The report, which surveyed 1,200 executives, information security professionals, and backup administrators from organizations that experienced at least one successful cyberattack in the past year, provides a comprehensive view of the evolving threat landscape.

Human Impact of Cyberattacks

Cyberattacks not only strain an organization’s financial resources but also significantly impact its personnel. The report reveals that 45% of respondents experienced increased pressure on IT and security teams following an attack. Additionally, 26% reported a loss of productivity, and 25% faced disruptions to internal or customer-related services.

Increased workload (45%) and heightened stress levels (40%) were among the personal challenges cited by respondents. These findings underscore the importance of effective cyber defense strategies to mitigate the human toll of cyberattacks.

Misalignment in Cyber Preparedness

Despite a focus on cyber-preparedness, many organizations face misalignment between their backup and cyber teams. Nearly two-thirds (63%) of organizations reported a lack of synchronization between these teams. Furthermore, 61% of security professionals and 75% of backup administrators believe significant improvements or complete system overhauls are needed.

Ransom Payments and Recovery Challenges

The report shows that 81% of organizations paid a ransom to end an attack and recover data. However, one-third of these organizations were unable to recover their data even after paying. More organizations reported unsuccessful recoveries despite paying the ransom compared to those who recovered without paying.

Financial Impact and Cyber Insurance

Contrary to the belief that cyber insurance increases the likelihood of ransom payments, Veeam’s research indicates that 81% of organizations paid the ransom, with 65% using insurance and 21% choosing to pay without making a claim. The total financial impact of a cyberattack averages only 32% of the overall cost, with only 62% of the costs recoverable through insurance or other means.

Importance of a “Good Backup”

A robust backup strategy is essential for cyber preparedness. While most organizations have incident response teams and playbooks, only 2% lacked a pre-identified team, and only 3% had teams without a playbook. Effective backup and recovery strategies are critical to ensuring data recoverability and minimizing the impact of cyberattacks.

Additional Key Findings

• Cloud and on-premises data are equally vulnerable to attacks, indicating that all IT infrastructure is accessible to attackers.
• Nearly two-thirds (63%) of organizations risk reintroducing infections during recovery by skipping vital steps like rescanning data in quarantine.
• Immutability is recognized as essential, with 75% of organizations using hardened on-premises disks and 85% using cloud storage with immutability capabilities.