- Eight in ten ransomware victims said they paid, but recovery remained uncertain
- Cybercriminals now target executive emails and leveraged contracts
- More than half of companies reported attacks linked to AI vulnerabilities
New research has claimed that small businesses continue to face threats in the digital space, with ransomware attacks in particular hitting hard.
The latest Hiscox Cyber Readiness report found of almost 6,000 businesses surveyed, well over half (59%) said they had been hit by some form of cyber attack in the last year.
Financial penalties followed for a third of those affected, with many reports of operational disruption, reputational damage and even burnout.
Disturbing reality of ransomware payments
Ransomware remains a major source of damage, and the report found that 27% of respondents had experienced such an attack, with 80% admitting to paying a ransom.
Despite this, recovery was far from guaranteed as only 60% managed to regain all or part of their data, while almost a third were asked to pay again after the initial transaction.
The results suggest that paying attackers creates little certainty and may only encourage more extortion attempts.
Calls are growing for greater transparency, with 71% of respondents saying companies should be required to disclose ransom payments and the amounts involved.
The report notes that criminal groups are increasingly targeting sensitive business data such as contracts, executive emails and financial information.
These items can be valued based on reputation value, making them easier to monetize than stolen personal details.
“Cybercriminals are now much more focused on stealing sensitive business data. Once stolen, they demand payment…price threats based on reputational damage,” said Eddie Lamb, Global Head of Cyber at Hiscox.
“This change exposed gaps in some companies’ data loss prevention controls, which attackers easily exploit.”
At the same time, more than half of respondents reported experiencing incidents of AI-related vulnerabilities, ranging from Deepfakes to weaknesses in third-party AI applications.
Although Nealry two-thirds (65%) still view AI as an opportunity more than a threat, the findings highlight new risks that may not yet be fully understood by business leaders.
To counter these threats, companies are increasing their security budgets and adopting measures that include staff training and new technical safeguards.
Businesses are turning to layered defenses such as ransomware protection, automated malware removal, and comprehensive antivirus systems.
These solutions often combine firewalls, password managers, and secure backup tools to reduce vulnerabilities and build overall resilience.
While these measures can reduce exposure, the scale of the attacks suggests that no system is foolproof.
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