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Saturday, September 26th, 2020

Businesses Paid $301M to Ransomware Hackers Last Year, New Datto Study Finds

by September 21, 2017 General

Datto’s Survey of Small-to-Mid-Sized Businesses is the Largest of Its
Kind to Date, Suggests Ransomware Attacks Continue to Accelerate

revealed the results of its second annual global State
of the Channel Ransomware Report
. As the largest survey of its kind,
the report provides unique visibility into the current state of
ransomware from more than 1,700 managed service providers (MSPs) who
work with more than 100,000 small-to-mid-sized businesses (SMBs) around
the world. Ninety-nine percent of MSPs predict uptick in attacks will
continue across the next two years.

The survey also found that approximately 5 percent of all SMBs worldwide
fell victim to ransomware over the past year.Most of the
financial strain, the survey found, occurs not as the result of the
ransom demanded by malicious hackers, but because of the resultant
downtime and data loss.

“The impact of downtime affects SMBs far more than the cost of ransom
requests. Seventy-five percent of MSPs reported having clients who
experienced business-threatening downtime as a result of a ransomware
attack,” said Robert Gibbons, Chief Technology Officer, Datto.

The survey also provided additional insights, some surprising:

  • Ransomware incidents are more frequent in 2017 according to 97
    percent of MSPs. Eighty-six percent of MSPs cited small business
    clients victimized by ransomware within the last 2 years and 15
    percent report six or more attacks affecting their clients over the
    last year. Twenty-six percent of MSPs cited multiple attacks against
    clients in a single day.
  • More ransomware attacks are being reported to the authorities,
    but the majority of incidents are not. From 2016-2017, slightly less 1
    in 3 SMB ransomware attacks were reported to authorities, an
    improvement from less than 1 in 4 from 2015-2016.
  • Fewer small businesses are paying the ransom. Thirty-five
    percent of MSPs reported small business victims pay the ransom, 15
    percent of whom do not recover their data. In the United Kingdom, this
    population jumps to 21 percent. An estimated $301 million was paid to
    ransomware hackers from 2016-2017.
  • No industry, operating system or device is safe from these attacks.
    Among those industry verticals who are targeted most by ransomware
    attacks are construction, manufacturing, healthcare, professional
    services and finance. SaaS applications continue to be a growing
    target for ransomware attacks with Dropbox, Office 365 and G Suite
    most at risk. Mobile and tablet attacks are also on the rise.
  • When it comes to ransomware awareness, the majority are still in
    the dark.
    While 90 percent of MSP respondents cited they are
    “highly concerned” about the business threat of ransomware, only 38
    percent of small business clients felt the same. This could be due to
    the lack of mandatory cybersecurity training across small businesses,
    which MSPs cited as the leading cause of ransomware infections.
  • CryptoLocker remains the most popular strain of ransomware attacks. Additionally,
    new strains like WannaCry also broke the top five most cited attacks
    by MSPs.
  • Ransomware outsmarts today’s top security solutions, so backup and
    disaster recovery is essential.
    With a reliable backup and
    recovery solution (BDR) in place, 96 percent of MSPs report clients
    fully recover from ransomware attack.

“No single defense solution is guaranteed to prevent a ransomware
attack,” said Dale Shulmistra, President, Invenio IT. “The most
effective means for business protection from ransomware is a backup and
disaster recovery (BDR) solution, followed by cybersecurity training.
One hundred percent of the time, we’ve been able to resolve the
ransomware issue for our SMB clients when such a solution is in place.”

For more information and key findings from Datto’s State of the Channel
Ransomware Report, please visit Datto’s

About Datto

Datto protects business data and provides secure connectivity for tens
of thousands of the world’s fastest growing companies. Datto’s Total
Data Protection solutions deliver uninterrupted access to business data
on site, in transit and in the cloud. Thousands of IT service providers
globally rely on Datto’s combination of pioneering technology and
dedicated services to ensure businesses are always on, no matter what.
Datto is headquartered in Norwalk, Connecticut and has offices in
Rochester, Boston, Portland, Toronto, London, Singapore and Sydney.