Financial losses were a major factor; most organizations reported operational failures, reputation damage, and staff losses. “Outdated operating systems and applications often contain security vulnerabilities that cyber attackers can exploit. Even with robust defenses, there is always a risk of data loss or ransomware attacks,” the report said.
Problems with ransomware payments
Ransomware is the topmost problem; the survey suggests that around 27% of respondents suffered damage, and 80% agreed to pay ransom.
Despite the payments, recovery was not confirmed as only 60% could restore their data, while hackers asked for repayments again. The reports highlight that paying the ransom to hackers doesn’t ensure data recovery and can even lead to further extortion.
Transparency needed
There is an urgent need for transparency, as 71% respondents agreed that companies should disclose ransom payments and the money paid. Hiscox found that gangs are targeting sensitive data like executive emails, financial information, and contracts.
The report notes that criminal groups are increasingly targeting sensitive business data such as contracts, executive emails, and financial information. "Cyber criminals are now much more focused on stealing sensitive business data. Once stolen, they demand payment…pricing threats based on reputational damage,” the report said. This shift has exposed gaps in businesses’ data loss prevention measures that criminals exploit easily.
AI threat
Respondents also said they experienced AI-related incidents, where threat actors exploited AI flaws such as deepfakes and vulnerabilities in third-party AI apps. Around 65% still perceive AI as an opportunity rather than a threat. The report highlights new risks that business leaders may not fully understand yet.
According to the report, “Even with robust defenses, there is always a risk of data loss or ransomware attacks. Frequent, secure back-ups – stored either offline or in the cloud – ensure that businesses can recover quickly if the worst happens.”
