A new study by NordLocker has analyzed numerous databases of ransomware incidents that affected more than 5,000 companies worldwide.
The research was conducted with the purpose of discovering which companies are at the highest risk of being targeted by ransomware. Apart from the geographic variable, researchers looked at factors such as which ransomware groups are the most active, the most affected industries, company revenue and employee count.
U.S. companies are the most affected by ransomware, with almost half (46 percent) of all ransomware attacks happening in America.
“Ransomware is a type of cyberattack that forces a company’s operations to a halt by taking possession of its most crucial and sensitive files and demanding a ransom from the company to get the data back. This type of attack is extremely effective. In the past few years, cases have grown exponentially, while cybersecurity awareness has failed to catch up,” said Tomas Smalakys, NordLocker’s CTO.
Ransomware distribution in America
- The state of Michigan is the most affected by ransomware. Missouri — the least.
- Small businesses are at the highest risk (up to 200 employees), accounting for two-thirds of all attacks (65.8 percent).
- Construction is the top industry hit by ransomware (12 percent of all attacks), while 5.4 percent of attacks targeted U.S. public sector institutions
- Conti ransomware group is by far the most active in the U.S., being responsible for 17.6 percent of attacks.
Construction is the top industry to be hit by ransomware
Nordlocker’s research found that out of 18 industries identified, construction (12 percent of all attacks), manufacturing (9.6 percent), transportation (8.2 percent), healthcare (7.8 percent), and tech/IT (7.6 percent) industries are the most likely to be hit by ransomware in the U.S.
“Ransomware gangs usually decide who their next target is based on two criteria. The first one is how likely the targeted company is to pay up, which is weighed by looking at variables such as the company’s importance in supply chains, the quantity of confidential information that it handles, and other factors that, in the case of an attack, put pressure on the company to get operations back up and running,” said Smalakys. “The second criteria is more straightforward and primarily deals with the depth of the company’s pockets and how lacking in cyber defenses their business is. When you look at the data through this lens, you see why certain industries are more affected than others.”
Small businesses beware
Business size is another major indicator of how likely a business is to be targeted by a ransomware attack. In the U.S., micro and small businesses (up to 200 employees) are at the highest risk, accounting for nearly two-thirds of all attacks (65.8 percent). Companies with an employee count of between 51-200 are the victims of 28.9 percent of attacks, while those with between 11-50 employees are victims of 22.4 percent of ransomware hacks, and those with between 201-500 deal with 15.6 percent of attacks.
“Small businesses are top targets for ransomware gangs because, for them, cybersecurity is often an afterthought. Smaller companies justifiably prioritize growing their operation, leaving cybersecurity on the sidelines,” said Smalakys. “This, combined with the usually thin profit margins small businesses endure, makes them not only easy to hack but very likely to pay up as well because they do not have the funds to sustain a prolonged halt to operations.”
What else did the research find?
- Among the affected organizations are some of the most influential institutions worldwide, including a Fortune 100 company and one of the top educational institutions in the U.S.
- Conti ransomware group is by far the most active in the U.S., being responsible for 17.6 percent of attacks. Conti is followed by LockBit (11.9 percent), Pysa (6.8 percent), and REvil (6.5 percent).
- Five percent of ransomware attacks targeted public sector institutions, including a major city’s police department and several county offices.
- Even though less than 1 percent of U.S. companies are publicly traded, they make up 10.4 percent of companies targeted by ransomware.
- 4.3 percent of affected companies in the U.S. have an annual revenue between $1-5 billion. However, companies that have yearly revenue between $10-25 million are targeted the most (24.6 percent).
What is ransomware, and how can companies protect themselves from it?
By definition, ransomware is a type of malware that restricts users’ access to their files and demands payment. But how it does it, what kind of payment is requested, and what is encrypted differ greatly.
Ransomware has been used for decades. Some criminals demand a $50 ransom, and others ask for $30 million. The effectiveness of the attack results from most companies being ill-equipped to deal with it.
To increase the likelihood of the ransom being paid, criminals may also threaten to post the victim’s data online.
How to protect your business
- Encourage cybersecurity training. Investing into your employee’s knowledge is one of the fastest ways to prevent ransomware. It should be organized regularly and have a holistic approach that covers every employee
- Ensure a regular backup process. Backups can’t stop cyberattacks, but they give the company leverage. Even if a company becomes a target for ransomware, the ability to restore data immediately will guarantee business continuity.
- Keep software up to date. Most cyberattacks either use social engineering to exploit the flaws in human nature or malware utilizing outdated software. Make sure everyone at the company understands how important it is to keep software up to date.
- Adopt zero-trust network access, meaning that every access request to digital resources by a staff member should be granted only after their identity has been appropriately verified.
The full report can be found here.
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Crystal Graham
