Rising Cyber Extortion Threats Targeting Large Companies in 2024

Moody’s, the global financial services and credit ratings company, has recently released a report highlighting a disturbing trend: hacking groups are increasingly targeting large organizations for significant payouts, often exploiting vulnerabilities in the supply chain to maximize their profits.

The report suggests that, while there was a slight decline in the number of ransom payments made over the past two years (2022 and 2023), the situation has taken a sharp turn in 2024. In those earlier years, many victims managed to avoid paying ransoms, either by recovering their data from backups or by using free decryption tools provided by cybersecurity firms and law enforcement agencies worldwide. However, this year, the landscape has changed dramatically. A growing number of businesses are opting to pay the ransom, with some paying staggering amounts. Notably, a record ransom of $75 million was paid in 2024, compared to $38 million in 2023.

At the same time, cybersecurity firm Coveware, which specializes in ransomware recovery, reached a similar conclusion. According to their analysis, only 24% of ransomware victims in the first half of 2024 were willing to meet the demands of cybercriminals, a stark contrast to 85% of victims in 2019.

Several factors are contributing to this shift. First, global law enforcement agencies, including the FBI and Europol, have ramped up efforts to crack down on cybercriminals. While this has led to some disruption of criminal activities, it has not been enough to deter all attacks. Second, the increased availability of advanced hybrid backup systems has allowed businesses to recover data more quickly and efficiently, reducing their reliance on paying ransoms. Third, the availability of free decryption keys for certain types of ransomware, such as those used by groups like LockBit, BlackCat, and Black Basta, has made it easier for victims to recover without making payments.

However, these measures aren’t foolproof, and many companies, especially larger enterprises, are still vulnerable. The key factor here is that bigger organizations are often financially capable of absorbing the costs of ransomware attacks. As a result, cybercriminals are increasingly focusing on high-value targets, with large-scale businesses becoming prime candidates for extortion.

Looking ahead, the threat of ransomware attacks is expected to increase by as much as 50% in the coming months. The rise of generative AI is equipping cybercriminals with more sophisticated tools to execute attacks with greater precision and a higher likelihood of success—up to 90%, according to some experts. The sectors most at risk include finance, healthcare, technology, and logistics, all of which are prime targets due to their financial importance and critical infrastructure.

As the threat landscape evolves, businesses must continue to bolster their defenses against these ever-growing risks. Ransomware is no longer just a nuisance—it’s a major financial and operational threat that demands comprehensive, proactive security strategies.