Survey reveals alarming rise in ransomware attacks

A new global survey from OpenText explores the alarming rise of ransomware attacks, with particular emphasis on software supply chain vulnerabilities and the enhanced threat posed by AI-driven phishing attempts.

The third annual Global Ransomware Survey, conducted by OpenText, indicates a significant portion of respondents—62%—reported experiencing ransomware attacks stemming from their software supply chain partners over the past year.

Muhi Majzoub, Executive Vice President and Chief Product Officer at OpenText, stated, "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 organisations paying the ransom only emboldens cybercriminals, fueling more relentless attacks."

The survey's Australian results underscore substantial concerns about supply chain attacks. A worrying 43% of respondents have been impacted by such attacks or remain unsure if they have been affected. Additionally, 72% of respondents plan to enhance collaboration with their software suppliers to bolster security measures in the forthcoming year.

Findings reveal that a striking majority, 93%, of respondents express apprehension over ransomware threats targeting downstream software supply chains, in addition to attacks on third-party and connected partners. Reflecting on recent breaches by prominent industry vendors, 53% of respondents reported increasing concerns about supply chain attacks, contemplating changes in their choice of vendors.

The report also highlights that 78% of respondents have instigated formal assessment processes for the cybersecurity practices of their software suppliers, though 21% either have not or are unaware of such measures.

The survey suggests that ransomware attacks were more common among smaller businesses, with 76% of SMBs having reported experiencing an attack within the past year, compared to 70% of larger enterprises.

Alarmingly, of the respondents who experienced an attack, over half (54%) chose to pay the ransom, with 77% of those payments ranging between USD $1 million and USD $5 million. Almost all of these organisations—98%—successfully restored their data post-payment.

The impact of artificial intelligence is noted as significant, with 62% of respondents acknowledging an increased risk of ransomware attacks due to AI usage among cybercriminals. Similarly, 53% observed a surge in phishing attacks attributed to AI advancements.

To combat these threats, organisations continue to ramp up their investment in cybersecurity, particularly cloud security and employee security awareness training. In 2024, 66% of respondents reported increased investment in cloud security, a rise from 56% in 2023.

A large number of respondents, 93%, indicated their companies mandate employee participation in security awareness or phishing training, with many adopting quarterly training schedules.

The OpenText survey engaged 1,781 executives and security professionals across several industries from various countries, including Australia, the United States, and the United Kingdom, among others, between August 23 and September 10, 2024.