Sophos: Rising ransomware costs hit energy and water sectors

A recent report from Sophos reveals that the median cost of recovering from ransomware attacks in the energy and water sectors has risen to $3 million over the past year. That figure, presented in the cybersecurity solutions firm’s State of Ransomware in Critical Infrastructure 2024 report, is four times higher than the global cross-sector median.

The report found that 49% of ransomware incidents in these sectors began with an exploited vulnerability. The data comes from a survey of 275 respondents from the energy, oil and gas, and utilities sectors, part of a larger survey of 5,000 cybersecurity and IT leaders conducted between January and February 2024.

“Criminals are focusing on areas where disruption can lead to quick ransom payments,” said Chester Wisniewski, global field CTO at Sophos. “Utilities are prime targets because of their essential services,” he said. Wisniewski noted that these sectors often operate with outdated technology and minimal staffing, making them vulnerable to attacks.”

In addition to rising recovery costs, the median ransom payment for these sectors rose to more than $2.5 million in 2024, surpassing the global median by $500,000. The energy and water sectors also saw a 67% ransomware attack rate, compared with the global average of 59%.

Ransomware attack recovery

Further findings show that data recovery times have significantly increased, with only 20% of organizations affected by ransomware in 2024 recovering their data within a week, down from 41% in 2023. The report also revealed that 55% of those organizations took more than a month to recover their data, down from 36% the previous year.

Backup compromise was reported in 79% of cases and successful encryption in 80%, making these sectors among the most vulnerable.

Wisniewski emphasized the need for proactive measures, including monitoring for vulnerabilities and ensuring 24/7 incident response capabilities. He emphasized that effective response plans, similar to those for natural disasters, should be regularly practiced to minimize disruptions and recovery times.