While companies improve defenses, almost half of respondents still suffer ransomware attacks and the resulting ransom payments only perpetuate the cycle of vulnerability 

WATERLOO, ON, Oct. 10, 2024 /PRNewswire/ -- OpenText™ (NASDAQ: OTEX), (TSX: OTEX) today released its third annual 2024 Global Ransomware Survey, which reveals the current state of ransomware attacks, including ransom payments, the impact of software supply chain attacks and generative AI. The report found that supply chain attacks are widespread with 62% of respondents having been impacted by a ransomware attack originating from a software supply chain partner in the past year.

OpenText (PRNewsfoto/Open Text Corporation)

With well-funded cybercriminals increasingly targeting software supply chains and harnessing generative AI to increase phishing attempts, businesses face a persistent struggle to stay ahead of evolving ransomware threats and the rising cost of attacks. Verizon's 2024 Data Breach Investigations Report shows that the median loss associated with the combination of ransomware and other extortion breaches has been $46,000, ranging between $3 and $1,141,467 for 95% of cases.

"SMBs and enterprises are stepping up their efforts against ransomware, from assessing software suppliers to implementing cloud solutions and boosting employee education. However, the increase in organizations paying the ransom only emboldens cybercriminals, fueling more relentless attacks," said Muhi Majzoub, executive vice president and chief product officer, OpenText. "Businesses must proactively defend against sophisticated threats like supply chain vulnerabilities and AI-driven attacks, while ensuring resilience through data backups and response plans, to avoid empowering the very criminals seeking to exploit them."

Key survey findings include:

  • Respondents are overwhelmingly concerned about supply chain attacks. Those who reported a ransomware attack this year were more likely to report that it came from their supply chain.
    • Forty percent of respondents have been impacted or don't know by a ransomware attack originating from a software supply chain partner.
    • Of the respondents who experienced a ransomware attack in the past year, 62% have been impacted by a ransomware attack originating from a software supply chain partner and 90% are planning to increase collaboration with software suppliers to improve security practices in the next year.
    • A majority (91%) of respondents are concerned about ransomware attacks on a company's downstream software supply chain, third-party and connected partners.
    • When asked if recent breaches by key industry vendors like Change Healthcare, Ascension and CDK Global that caused sector-specific outages and losses made them more concerned about being impacted by a supply chain attack, almost half (49%) are more concerned – enough to consider making vendor changes.
    • Almost three-quarters of respondents (74%), including those who have experienced a ransomware attack in the past year, have a formal process for assessing the cybersecurity practices of your software suppliers. A surprising 26% do not or don't know.
  • Almost three-quarters of companies have experienced a ransomware attack this year, with more SMBs than large enterprises having experienced an attack.
    • Of the 48% of respondents who have experienced a ransomware attack, 73% have experienced a ransomware attack in the last year, only a quarter have not (25%) and 2% don't know.
    • More SMBs vs. large enterprises have experienced a ransomware attack. Over three-quarters (76%) of SMBs reported experiencing a ransomware attack in the past year while 70% of large enterprises reported experiencing a ransomware attack in the past year.
    • Of those who experienced a ransomware attack in the past year, a little less than half (46%) paid the ransom. 31% of their ransom payments were between $1 million and $5 million. At the same time, almost all (97%) successfully restored their organization's data. Only 3% did not.
  • Respondents experienced more phishing attacks due to the increased use of AI, especially among those who have experienced a ransomware attack.
    • More than half (55%) of respondents said their company is more at risk of suffering a ransomware attack because of the increased use of AI among threat actors.
    • Almost half (45%) of respondents have observed an increase in phishing attacks due to the increased use of AI. Of those who experienced a ransomware attack, 69% have observed an increase in phishing attacks due to the increased AI usage.
  • Organizations, including SMBs, continue to invest more in cloud security and security awareness and phishing training.
    • Cloud security is the cybersecurity area that respondents say their companies are investing in most (66%).
      • In 2024, 62% of SMB respondents are investing more in cloud security. In contrast, in 2023, 56% were investing more in cloud security. In 2022, only 39% of SMB respondents were using cloud security solutions.
    • A majority (91%) of respondents said their companies require employees to participate in security awareness or phishing training. Only 9% do not. In 2024, 66% conducted at least a quarterly training.
      • Compared to 2023 and 2022, organizations are requiring employees to participate in security awareness training more frequently. In 2023, only 39% conducted training once per quarter. In 2022, only 24% of SMBs conducted security awareness training once per quarter.

To learn more about the findings, view the infographic or visit our blog.

Survey Methodology
OpenText Cybersecurity polled 1,781 c-level executives, security professionals and security and technical directors from SMBs and enterprises in the United States, the United Kingdom, Australia, France, Germany and India from August 23 to September 10, 2024. Respondents represented multiple industries including technology, financial services, retail, manufacturing, healthcare, education and more.

About OpenText Cybersecurity
OpenText Cybersecurity provides comprehensive security solutions for companies and partners of all sizes. From prevention, detection and response to recovery, investigation and compliance, our unified/end-to-end platform helps customers build cyber resilience via a holistic security portfolio. Powered by actionable insights from our real-time and contextual threat intelligence, OpenText Cybersecurity customers benefit from high efficacy products, a compliant experience and simplified security to help manage business risk.

About OpenText 
OpenText™ is the leading Information Management software and services company in the world. We help organizations solve complex global problems with a comprehensive suite of Business Clouds, Business AI, and Business Technology.  For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at www.opentext.com.

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Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies, and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website (https://investors.opentext.com). Such social media channels may include the Company's or our CEO's blog, Twitter account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication. 

Copyright © 2024 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit https://www.opentext.com/patents.

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