Global ransomware damage costs predicted to exceed $11.5 billion annually by 2019

MENLO PARK, Calif., Nov. 15, 2017 /PRNewswire/ -- Ransomware — a malware that infects computers (and mobile devices) and restricts their access to files, often threatening permanent data destruction unless a ransom is paid — has reached epidemic proportions globally.

The impact on businesses is reflected in the Official 2017 Ransomware Report, announced today by Cybersecurity Ventures.

Global ransomware damage costs are predicted to exceed $11.5 billion annually by 2019, up from $5 billion in 2017.

Cybersecurity Ventures predicts there will be a ransomware attack on businesses every 14 seconds by the end of 2019. This does not include attacks on individuals, which occurs even more frequently than businesses.

"Since September 2013 when CryptoLocker, the first weapons-grade ransomware strain appeared, this type of malware has metastasized into a multi-billion dollar criminal business model that is only in its early phases and will continue to increase in sophistication," says Stu Sjouwerman, founder and CEO at KnowBe4, a company that specializes in training employees on how to detect and respond to ransomware attacks.

The big myth around ransomware damages is the costs are limited to ransom payouts. However, the percentage of businesses and individuals who are paying bitcoin to reclaim access to their data and systems in response to ransom demands — is declining (even if the total payout figures are rising due to the sheer volume of new attacks).

"Ransomware costs include damage and destruction (or loss) of data, downtime, lost productivity, post-attack disruption to the normal course of business, forensic investigation, restoration and deletion of hostage data and systems, reputational harm, and employee training in direct response to the ransomware attacks," says Steve Morgan, founder and Editor-In-Chief at Cybersecurity Ventures.

CIOs, CISOs (Chief Information Security Officers), and IT security teams need to heighten their awareness and response plans around the ransomware threat. Cyber defense needs to cross boundaries so that every IT worker understands exactly what ransomware is, how it infects organizations, and how to combat it.

Cybersecurity Ventures predicts cybercrime will cost the world in excess of $6 trillion annually by 2021, up from $3 trillion in 2015. Ransomware is expected to worsen and make up a proportionately larger share of total cybercrime by 2021.

The Official 2017 Ransomware Report is sponsored by KnowBe4, a world-class integrated Security Awareness Training and Simulated Phishing platform.

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Cybersecurity Ventures is the world's leading researcher and publisher covering the global cyber economy, and a trusted source for cybersecurity facts, figures, and statistics.

SOURCE Cybersecurity Ventures

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SOURCE Cybersecurity Ventures

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