CDSA

Report: SMBs Paid $301M to Ransomware Hackers Last Year (TechRepublic)

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Small- and medium-sized businesses (SMBs) paid ransomware hackers $301 million in 2016 to decrypt critical files—and 99% predict that these attacks will continue to rise in the next two years, according to Datto’s State of the Channel Ransomware Report, released Thursday.

Some 97% of the 1,700 managed service providers (MSPs) surveyed reported that ransomware is becoming more and more frequent for their SMB partners. About 5% of all SMBs fell victim to a ransomware attack in the past year, the report found. And most of the financial strain caused by these attacks is not due to the ransom itself, but the resulting downtime and data loss.

“The impact of downtime affects SMBs far more than the cost of ransom requests,” said Robert Gibbons, CTO of Datto, in a press release. “Seventy-five percent of MSPs reported having clients who experienced business-threatening downtime as a result of a ransomware attack.”