The Average Cost of Ransomware Attacks: How Prevention Can Save You Millions
Ransomware has rapidly become one of the most costly cyber attacks affecting businesses worldwide. As hackers develop new techniques and enhance their technological skills, even well-protected businesses risk having their data encrypted, stolen, or leaked.
The financial impact of these attacks can reach millions of dollars, including ransom payments and operational disruptions. Aside from the cost, ransomware attacks can harm customer trust and long-term business growth. However, with the right strategies, your business can reduce risk, proactively address vulnerabilities, strengthen security defenses, and save millions in potential losses.
Prevent Ransomware with Regulated Security
Prepare your IT systems for the worst with the help of cybersecurity professionals. Proactively backing up your data, implementing advanced security protocols, and accessing 24/7 monitoring will deter ransomware from impacting your business.
How Does Ransomware Work?
Ransomware is a cyber attack that uses malicious software (malware) to encrypt sensitive data with a key only the attacker can access. This encryption makes the data unusable until the victim pays a ransom. Payment usually involves bitcoin or other cryptocurrencies, and sometimes, even after paying, the data is not released.
By 2025, 63% of businesses worldwide are expected to have experienced a ransomware attack. Unfortunately, ransomware is becoming more sophisticated as hackers employ double extortion tactics that now exfiltrate and steal data to increase their financial gain. Suppose the ransom is not paid within the specified time. In that case, the hacker will leak the information on the dark web, potentially exposing sensitive data about the company, its employees, and customers.
Ransomware Costs and How it Could Affect Your Business Long-term
Ransomware attacks have long-lasting effects on a business, whether through financial loss or operational disruption. The true cost of ransomware goes far beyond the initial payment. Understanding the full impact helps businesses prepare, budget, and respond effectively to reduce both short-term and long-term damage
Ransom Attack Costs
On average, in 2025, the ransom payment demand rose to $1.52 million, with one of the largest ransomware attacks reaching an astonishing $22 million, impacting United Health Group. Additionally, 68% of ransomware victims experienced a second attack within six months of the initial one.
Recovery Costs
Besides the ransom payment, companies face additional costs to recover systems, implement new security measures, and maintain customer satisfaction. While deploying new tools is costly, there are also revenue losses from unexpected disruptions, data recovery expenses, and forensic investigations, which can total up to $237,000 for a business. With an average downtime of 24.6 days in 2025, companies may have missed opportunities to close deals, attract new clients, or expand existing services.
Immaterial Costs
Once the monetary costs are finalized, businesses still need to consider intangible costs. Brand reputation, PR remediation techniques, and a loss of customer trust are just a few of the long-term effects of ransomware attacks. Additionally, boards of directors or governments will demand immediate reporting of cybersecurity incidents, which requires more resources and increases costs.
Unfortunately, ransomware drains more than just your budget; it also erodes customer trust, reputation, and business growth. By proactively recognizing signs of a malware attack, you can quickly reduce the risk and strengthen your resilience against future attacks.
What Should You Include in Your Ransomware Policy?
Creating a ransomware policy is essential for any business aiming to proactively defend against advanced threats. Your policy will detail how your team will prevent, detect, and respond to these attacks to help reduce risk and ensure business continuity. Below are the key components that should be part of your ransomware policy
AI Ransomware Protection
While cybercriminals are using AI to cause harm, you can leverage AI to better protect your systems and reduce your team’s workload. By applying four key techniques, you can simplify daily tasks while consistently monitoring network activity.
- Automate security operations
- Analyze data and detect anomalies
- Improve phishing prevention
- Enhance IAM and PAM capabilities
Ransomware Incident Response Plan
An incident response plan specifically crafted for ransomware attacks coordinates efforts to manage and minimize the impact on your digital assets and operations. This strategy should be integrated into your broader cybersecurity incident response plan and is triggered when malicious software designed to encrypt data is detected within your systems.
The aim of a ransomware incident response plan is to promptly contact and neutralize the threat, recover affected systems or data, and reduce operational disruptions and financial losses.
This plan usually focuses on five main steps, including:
- Identification
- Containment
- Eradication
- Recovery
- Post-incident analysis
Each step should include specific instructions tailored to the type of ransomware attack and provide a clear understanding of the IT environment, communication channels to use, and the roles and responsibilities of your IT team.
Cloud Native Security Solution
As ransomware attacks increase in frequency and severity, all companies should consider risk mitigation strategies. Using tools like cloud-native security, you can manage firewalls, layered security measures, and threat intelligence tools within a single cloud platform. This approach benefits businesses of any size by helping to protect networks against ransomware and other cybersecurity threats.
By implementing these factors into your ransomware policy, your business can remain ahead of sophisticated attacks. A response plan that leverages AI, proactive planning and cloud-native security ensures that when a ransomware attack occurs, your team knows exactly what to do to recover confidently.
Prevent Ransomware with Regulated Security
Prepare your IT systems for the worst with the help of cybersecurity professionals. Proactively backing up your data, implementing advanced security protocols, and accessing 24/7 monitoring will deter ransomware from impacting your business.
Prepare for a Ransomware Attack with Applied Tech
Ransomware attacks can be devastating for businesses, causing financial damage and ongoing reputational harm. The average cost of ransomware attacks continues to rise, highlighting that preparation and prevention are more important than ever. By implementing a detailed ransomware plan, leveraging AI tools, and adopting cloud security solutions, you can safeguard your business from emerging threats.
At Applied Tech, we offer regulated, end-to-end cybersecurity services made to help you build a more resilient IT environment. With our proactive approach, continuous monitoring, and expert support, you can safeguard your business, protect your data, and maintain smooth operations. Contact us today to discover how we can partner with your team to enhance your business’s protection against evolving ransomware threats.
About Applied Tech
Applied Tech is a leading IT and cybersecurity services provider dedicated to helping businesses protect their digital assets. Our proactive and strategic services include cloud management, security, productivity, and IT growth strategy. With a team of experienced professionals, we provide unique solutions tailored to your IT needs.
Protect your business with Applied Tech’s fully managed IT services, co-managed support, and security assistance. With IT services focused on your business goals, keep your team productive and your data secure.
