Ransomware Causes Continued Chaos as Victims Fail to Recover 43% of Affected Data

Ransomware remains a significant and evolving threat for organizations worldwide. According to the latest Veeam® 2024 Ransomware Trends Report, ransomware is the largest single cause of IT outages and downtime, with 41% of data being compromised during a cyberattack. This report reveals that only 57% of the compromised data will be recovered, leaving organizations vulnerable to substantial data loss and severe financial and operational consequences.

Ransomware has become endemic, affecting 75% of organizations in 2023. The sophistication and volume of these attacks have increased, partly due to advancements in AI, which not only aid in creating smarter security measures but also enable more sophisticated attacks. Dave Russell, Senior Vice President and Head of Strategy at Veeam, emphasizes that ransomware attacks are expected to continue, become more severe, and cost organizations more than anticipated. He stresses the importance of cyber resiliency and rapid, clean recovery, advocating for immutable backups to protect valuable business data and ensure continuity.

The Veeam 2024 Ransomware Trends Report, now in its third annual edition, draws insights from 1,200 organizations that experienced at least one successful cyberattack in the previous 12 months. The respondents include executives, information security professionals, and backup administrators, providing a comprehensive overview of the evolving threat landscape.

One critical aspect highlighted in the report is the toll on the organization's personnel. Cyberattacks not only affect financial stability but also significantly impact teams and individuals. Following a cyberattack, 45% of respondents reported increased pressure on IT and security teams, 26% experienced a loss of productivity, and 25% encountered disruptions to internal or customer-related services. The human impact of these attacks cannot be overstated, with 45% of surveyed individuals citing increased workload post-attack and 40% reporting heightened stress levels and other personal challenges. These findings underscore the importance of effective cyber defense strategies to mitigate these impacts.

Despite the increased focus on cyber-preparedness, organizations still face significant misalignment between their backup and cyber teams. For the third consecutive year, nearly two-thirds (63%) of organizations reported that their backup and cyber teams lack synchronization. This misalignment is further highlighted by the fact that 61% of security professionals and 75% of backup administrators believe their teams need significant improvement or a complete system overhaul.

Contrary to the belief that having cyber insurance increases the likelihood of ransom payments, Veeam's research indicates otherwise. Although only a minority of organizations have a policy to pay ransoms, 81% opted to do so. Interestingly, 65% of those who paid did so with insurance, and another 21% had insurance but chose to pay without making a claim. This implies that in 2023, 86% of organizations had insurance coverage that could have been utilized for a cyber event. However, the ransoms paid accounted for only 32% of the overall financial impact on an organization post-attack. Moreover, cyber insurance does not cover the entirety of the costs associated with an attack; only 62% of the total impact is recoverable through insurance or other means, leaving the remaining costs to be borne by the organization.

The full Veeam 2024 Ransomware Trends Report is available for download at [Veeam's website](https://vee.am/RW24) and will be featured in sessions at VeeamON 2024. This community event for data recovery experts will take place online from June 3-5 and in person in Fort Lauderdale, Florida. Designed for backup and recovery professionals, the event will provide attendees with opportunities to expand their skills, learn how to protect their businesses from ransomware, and share industry knowledge. VeeamON 2024 will feature exclusive content from Diamond Sponsors like ExaGrid, Hewlett Packard Enterprise, Lenovo, and Microsoft, as well as Platinum sponsors including Backblaze, Hitachi, Pure Storage, Scality, and Wasabi. Registration for both the in-person event and the virtual option is now open.

The Veeam 2024 Ransomware Trends Report highlights the critical need for organizations to adopt robust cyber resiliency strategies, align their backup and cyber teams, and leverage advanced technologies and insurance wisely to mitigate the impacts of ransomware attacks. By taking proactive measures and fostering a culture of preparedness, organizations can better protect their valuable data and ensure continuity in the face of evolving cyber threats.