Most ransomware victims pay ransom but many fail to recover data, report reveals

A new report from insurer Hiscox highlights the growing scale and impact of ransomware attacks, showing that the vast majority of victims end up paying the ransom. The study surveyed more than 5,700 small and medium-sized businesses (SMEs) across the past 12 months, finding that 27% were targeted by ransomware. Among those targeted, 80% chose to pay their attackers. However, the report warns that paying the ransom does not guarantee recovery — only 60% of those who paid managed to get back all or part of their data, and nearly a third of paying victims were subjected to further financial demands by criminals. The report also highlighted the broader risks and costs faced by companies. Nearly 60% of surveyed firms experienced some form of cyber attack, with many attributing their vulnerabilities to artificial intelligence-related system weaknesses. Apart from direct financial damage, many organizations suffered reputational harm, customer losses, regulatory fines, and operational disruption that threatened their survival. High-profile victims included Marks & Spencer, the Co-op, and Jaguar Land Rover (JLR). JLR alone faces an estimated £200m financial impact due to lost production, despite being in the process of securing cyber insurance. M&S and others reportedly paid their attackers but relied on insurance to recover losses. The report emphasizes a changing goal among hackers, who increasingly focus on sensitive business data such as contracts, executive emails, and intellectual property, because such information can be monetized more effectively than personal data. Experts warn that companies must invest more seriously in cybersecurity, as the combination of financial loss, reputational risk, and employee burnout can threaten even well-established businesses. Meanwhile, research shows that the cyber insurance market, worth £521m in the UK last year, could exceed £2.4bn by 2033, highlighting the growing demand for protection against digital crime.