- Hiscox study finds most firms who pay ransoms don’t get their data back in full
- Victims also suffer reputational damage
- Many companies report losing customers and business partners
With ransomware attacks becoming ever more common, a firm’s response can be crucial to recovery and mitigating the damage of the attack.
A new study from Hiscox has revealed a good reason not to pay attackers, finding in the vast majority of cases, even when a ransom is paid, companies don’t get their information back.
The company found only 7% of firms recovered their data in full – and in fact, 1 in 10 of the businesses who pay the ransom still had their data leaked.
Reputations to ransom
Aside from the obvious impacts of financial loss and stress to those involved, ransom attacks also affect reputations of companies who fall victim.
The study found of those who experienced a ransomware attack in the last 12 months, a staggering 47% reported greater difficulty in attracting new customers, and 43% have lost customers.
“Hackers are holding reputations to ransom – and no business is too small to be at risk,” said Alana Muir, Head of Cyber at Hiscox UK.
Most businesses are worried about this too, with 61% of organizations believing that the reputational damage from a cyberattack would ‘significantly damage’ their business.
In 2024, the survey found over a third (38%) of companies that fell victim to a cyberattack also suffered bad publicity resulting in damage to brand reputation, and 21% also lost business partners, showing just how detrimental attacks can be, even beyond the attack itself.
The news comes shortly after the UK Government opened a consultation to consider banning the payment of ransoms by public institutions in the event of a ransomware attack, in efforts to make critical infrastructure a less attractive target, and to disrupt criminal’s sources of income.