Hiscox Study Reveals: Paying Ransom Doesn’t Ensure Data Retrieval

A recent study conducted by Hiscox shed light on the repercussions of ransomware attacks, emphasizing that paying ransom does not guarantee full data recovery for affected firms. Shockingly, only 7% of companies managed to retrieve their information in its entirety, with 1 in 10 businesses still facing data leaks even post-payment.

Reputational Damage Looms Large
Beyond financial losses and operational disruptions, ransom attacks have significant implications on a company’s reputation. The study uncovered that 47% of businesses hit by ransomware in the last year struggled to attract new customers, and 43% experienced customer losses. Alana Muir, Head of Cyber at Hiscox UK, highlighted the concerning trend, stating, “Hackers are holding reputations to ransom, and no business is immune to the risk.”

Businesses Brace for Impact
Fear of reputational harm is widespread, with 61% of organizations fearing that cyberattacks could immensely harm their brand. Disturbingly, over a third of companies breached in 2024 suffered from adverse publicity and damaged brand reputation, while 21% lost crucial business partnerships, underscoring the far-reaching consequences of cyber incidents.

Government Weighs In
In response to escalating cyber threats, the UK Government is contemplating a ban on ransom payments by public institutions during ransomware attacks. This move aims to safeguard critical infrastructure and disrupt criminal revenue streams, in a bid to make such attacks on institutions less appealing to cybercriminals.

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