Healthcare Ransomware Attacks Reach Record High, Recovery Costs Soar: Sophos Report

Ransomware attacks on healthcare organisations have surged to a four-year high. A report by Sophos, titled "The State of Ransomware in Healthcare 2024," reveals that 67 per cent of healthcare institutions experienced ransomware attacks in the past year, an increase from 60 per cent in 2023, despite a declining trend in ransomware attacks across other sectors.

The company in a press statement on Thursday informed that the healthcare sector not only saw an increase in attacks but also reported longer recovery times. Only 22 per cent of victims recovered within a week or less, a sharp drop from 47 per cent in 2023, and 54 per cent in 2022. In contrast, 37 per cent of organisations took over a month to recover from ransomware attacks.

John Shier, Field CTO at Sophos, highlighted the ongoing vulnerability of the healthcare sector, stating, “While ransomware attacks have plateaued or decreased in other industries, healthcare remains a prime target. The sensitivity of healthcare data and the need for constant accessibility make it an attractive target for cybercriminals, often resulting in extended recovery times and significant disruptions to patient care.”

Other key findings from the report include the rising financial toll of ransomware recovery. The average cost of recovery for healthcare institutions reached USD 2.57 million in 2024, up from USD 2.2 million in 2023 and double the figure in 2021. Additionally, 57 per cent of organisations that paid ransoms reported paying more than initially demanded.

Sophos’ survey also identified compromised credentials and exploited vulnerabilities as the leading causes of attacks, each accounting for 34 per cent of incidents. Notably, 95 per cent of healthcare institutions reported that cybercriminals targeted their backups during the ransomware attacks, with organisations that lost backups being more than twice as likely to pay a ransom.

The findings underscore the growing complexity and cost of ransomware attacks in healthcare, with insurance providers funding 19 per cent of ransom payments in 77 per cent of the cases. The survey involved 402 healthcare organisations as part of a broader global study of 5,000 cybersecurity leaders.