Ransomware has evolved from an ever-changing technical ploy into an organized business with a wide array of targets. Today it’s not just about encrypting files, but also about data theft, extortion, and even covering for espionage. The key to reducing losses is not to pay, but to be prepared and know how to recover.
A professional crime ecosystem
The ransomware scene resembles a company with distinct divisions. Some groups run phishing and obtain access, others develop malicious code ‘to order’, others carry out the attacks themselves, and independent players handle laundering the proceeds. These are organized teams with ‘shifts’, processes, and specialization—and they are often not technical geniuses, but professionals with a specific role in the chain. The growth in incidents is evident: analyses were already reporting in Q3 2022 an approximately double-digit quarter-over-quarter increase and a significant year-over-year jump.
Regionally, attacks concentrate where the economic return is greatest, especially in North America and Europe. Pressure is also growing on small and medium-sized businesses, because they attract less media attention yet are attractive enough in terms of potential payout. Roughly a quarter of major malicious activity worldwide today is linked to ransomware, with per-incident losses measured in the millions. It’s not just the ransom, but also outages, system restoration, and reputational damage.
To pay or not to pay—and what actually helps
Paying the ransom itself hardly reduces the damage—based on experience by only about 2%. In countries with better international cooperation and consistent reporting of attacks, damages can be reduced by around a tenth, but the decisive factor is the organization’s preparedness. Backups aren’t enough; you need to have a recovery plan, regularly test data restores, drill procedures, and know how much it costs and how long it takes to return to operation. Organizations with clear processes and regular testing can cut losses by tens of percent.
The recommendation is therefore unambiguous: do not pay, but be prepared. The response may also include tactical negotiation and crisis communications, but the goal should be the safe restoration of services from your own resources. Ransomware is a form of extortion—the data are the hostage—and the best answer is prevention, discipline in cyber hygiene, and rapid recovery. Those who know their weaknesses, practice and test regularly, minimize damage and take away attackers’ main leverage.
