Page 182 - Cyber Defense eMagazine December 2022 Edition

Why Ransomware Costs Need to be Prioritized in Your

2023 Budget

By Anurag Lal, CEO and President of NetSfere

No one expects a hostage takeover, ever. Businesses never think a ransomware attack could happen to
them, and yet it very well can at any moment. These attacks have been steadily increasing over the last
few years, with a 16% increase from 2018 to 2022. In fact, 2022 saw over 70% of businesses experience
a ransomware attack.

As enterprise leaders look ahead to Q1 and 2023 financial planning, IT officers and cybersecurity staff
need to press the importance of allocating ransomware costs into the annual budget. A study by
ThoughtLab saw cybersecurity budgets grow 51%, from .53% to .80% in 2020 to 2021. This is likely due
to the risk increase associated with remote work environments and the vulnerability that comes with
them.

One of the biggest ransomware attacks in recent days is the May 2021 Colonial Pipeline Company fiasco.
Colonial Pipeline holds almost half of the East Coast’s fuel and after a major hack takeover, Colonial
Pipeline is said to have paid nearly $5 million in ransom to the DarkSide ransomware hackers to get a
decryption key.

Cyber Defense eMagazine – December 2022 Edition 182
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