Businesses underestimate ransomware threat despite growing concerns

Businesses underestimate ransomware threat despite growing concerns – report | Insurance Business Canada

Cyber

Businesses underestimate ransomware threat despite growing concerns – report

“The conviction ‘it won’t happen to me’ is a risky mindset”

There is a disconnect between businesses’ perception of their vulnerability to ransomware attacks and the harsh reality of escalating cyber threats, according to a new global report by OpenText.

Surveying small-to-medium-sized businesses (SMBs) and larger enterprises, the Ontario-headquartered cybersecurity firm found that many companies continue to underestimate their vulnerability to ransomware attacks. In fact, 65% of SMBs and 54% of enterprises either don’t believe or are unsure that threat actors would target them.

“The conviction ‘it won’t happen to me’ is a risky mindset,” said Prentiss Donohue, executive vice president at OpenText. “Cyberattacks have become increasingly common and can have serious consequences; no business is immune to an attack.”

In Canada, high-profile ransomware attacks have been dominating headlines. One such incident involved Indigo Books & Music. In late February, the retail giant had its employee data stolen by a cybercriminal gang that claimed to be affiliated with the LockBit ransomware website.

Companies display caution amid AI concerns

Despite a prevailing optimism bias, the businesses surveyed by OpenText were still concerned about being targeted by threat actors.

According to the survey, 90% of SMBs and 87% of enterprises are extremely or somewhat concerned about a potential ransomware attack. They also conveyed their apprehensions about the role of artificial intelligence (AI) in cyberattacks, with over half of those surveyed believing they face increased risk due to the rising use of AI among cybercriminals.

Amid these concerns, both SMBs and enterprises showcased a commitment to bolstering cybersecurity initiatives, as 57% of SMBs and 53% of enterprises said they plan to increase their security budgets in 2024.

Moreover, the OpenText survey found that businesses are gearing up to expand their security teams, with 44% of SMBs and 43% of enterprises intending to augment their cybersecurity workforce.

“While many businesses take the right defensive steps like using access controls, deploying backup and monitoring for threats, a layered security approach that includes education remains the best defense against ransomware,” said Donohue. “Ongoing education of the risks as well as the techniques used to perpetuate an attack is essential to avoid falling victim.”

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