Home Malware Ransomware is (slightly) on the decline, cyberinsurance company says

Ransomware is (slightly) on the decline, cyberinsurance company says

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Ransomware attacks began to become both less common and less costly in the first half of 2022, as payments to attackers and the number of attacks that resulted in paid ransoms both shrank, according to new data released today by cyberinsurance company Coalition.

After increasing sharply at the outset of the pandemic, the frequency of ransomware claims made by Coalition policyholders shrank sharply during the first six months of the year, dropping from a peak of 0.66% of all policyholders in the second half of last year to 0.41% in early 2022—a figure lower than the initial 0.44% seen in 2020’s second half, when the COVID crisis was at its height.

Part of the reason for this decline, according to the Coalition report, is the growing prevalence of offline backup systems at major companies, which means that more ransomware targets can simply restore their data without having to engage with their attackers. Additionally, the company said, outside sources like recovery services provider Coveware and Verizon indicate that the average size of a ransomware payoff has declined precipitously in recent months.

Strategy of ransomware groups evolve

It’s important to note, however, that the organized groups behind many of the most prominent ransomware attacks have constantly evolving strategies, Coalition said.

“Over the last three years, cyberattacks have evolved into a viable criminal business model with threat actor groups such as Conti, Lockbit, and Hive continuing to make headlines,” the report said.

Moreover, one of those evolutions seems to be a shift toward targeting smaller businesses, which are often less able to cope with the consequences of ransomware attacks. The average cost of a cyberincident claim for a small business in the first half of 2022 was $139,000—a hefty sum for a small company.

Copyright © 2022 IDG Communications, Inc.

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