OpenText Cybersecurity’s 2024 Ransomware Survey: Supply Chain Attacks Surge, Ransom Payments Persist

OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today released its third annual 2024 Global Ransomware Survey, which reveals the current state of ransomware attacks, including ransom payments, the impact of software supply chain attacksandgenerative AI. The report found that supply chain attacks are widespreadwith62% of respondents having been impactedby a ransomware attack originating from a software supply chain partner in the past year.

With well-funded cybercriminals increasingly targeting software supply chains and harnessing generative AI to increase phishing attempts, businesses face a persistent struggle to stay ahead of evolving ransomware threatsand the rising cost of attacks. Verizon's 2024 Data Breach Investigations Reportshows that the median loss associated with the combination of ransomware and other extortion breaches hasbeen $46,000, ranging between $3 and $1,141,467 for 95% of cases.

"SMBs and enterprises are stepping up their efforts against ransomware, from assessing software suppliers to implementing cloud solutions and boosting employee education. However, the increase in organizations paying the ransomonly emboldens cybercriminals, fueling more relentless attacks," said Muhi Majzoub, executive vice president and chief product officer, OpenText. "Businesses must proactively defend against sophisticated threats like supply chain vulnerabilities and AI-driven attacks, while ensuring resilience through data backups and response plans, to avoid empowering the very criminals seeking to exploit them."

Key survey findings include:

• Respondents are overwhelmingly concerned about supply chain attacks. Those who reported a ransomware attack this year were more likely to report that it camefrom their supply chain.

• Forty percentof respondents have been impactedor don'tknowby a ransomware attack originating from a software supply chain partner.

• Of the respondents who experienced a ransomware attack in the past year, 62% have been impactedby a ransomware attack originating from a software supply chain partner and 90% are planning to increase collaboration with software suppliers to improve security practices in the next year.

• A majority (91%) of respondents are concerned about ransomware attacks on a company's downstream software supply chain, third-party and connected partners.

• When asked if recent breaches by key industry vendors like Change Healthcare, Ascension and CDK Global that caused sector-specific outages and losses made them more concerned about being impactedby a supply chain attack, almost half (49%) are more concerned - enough to consider making vendor changes.

• Almost three-quarters of respondents (74%), including those who have experienced a ransomware attack in the past year, have a formal process for assessing thecybersecurity practices of your software suppliers. A surprising 26% do not or don'tknow.

• Almost three-quarters of companies have experienced a ransomware attack this year, with more SMBs than large enterprises having experienced anattack.

• Of the 48% of respondentswho have experienced a ransomware attack, 73% have experienced a ransomware attack in the last year, only a quarter have not (25%) and 2% don'tknow.

• More SMBs vs. large enterprises have experienced a ransomware attack. Over three-quarters (76%) of SMBs reported experiencing a ransomware attack in the past year while 70% of large enterprises reported experiencing a ransomware attack in the past year.

• Of those who experienced a ransomware attack in the past year, a little less than half (46%) paid the ransom. 31% of their ransom payments were between $1 million and $5 million.At the same time, almost all(97%) successfully restored their organization's data. Only 3% did not.

• Respondents experienced more phishing attacks due totheincreased use of AI, especially among those who have experienced a ransomware attack.

• More than half (55%) of respondents said their company is more at risk of suffering a ransomware attack because of the increased use of AI among threat actors.

• Almost half (45%) of respondents have observedan increase in phishing attacks due to the increased use of AI. Of those who experienced a ransomware attack, 69% have observedan increase in phishing attacks due to the increased AI usage.

• Organizations, including SMBs, continue to invest more in cloud security and security awareness and phishing training.

• Cloud security is the cybersecurity area that respondents say their companies are investing in most (66%).

• In 2024, 62% of SMB respondents are investing more in cloud security. In contrast, in 2023, 56% were investing more in cloud security. In 2022, only 39% of SMB respondents were using cloud security solutions.

• A majority (91%) of respondents said their companies require employees to participatein security awareness or phishing training. Only 9% do not. In 2024, 66% conducted at least a quarterly training.

• Compared to 2023 and 2022, organizations are requiring employees to participatein security awareness training more frequently. In 2023, only 39% conductedtraining once per quarter. In 2022, only 24% of SMBs conducted security awareness training once per quarter.

To learn more about the findings, view the infographicor visit ourblog.