Corvus reports Q2 surge in ransomware attacks, demands, and payments

Corvus Insurance, a wholly owned subsidiary of The Travelers Companies, Inc., today released its Q2 2024 Cyber Threat Report, Ransomware Season Arrives Early. Featuring data collected from ransomware leak sites, the report identified 1,248 ransomware victims in Q2, the second most the company has recorded in a single quarter.

During the quarter, new ransomware groups, including PLAY, Medusa, RansomHub, INC Ransom, BlackSuit and some additional lesser-known factions, led a series of attacks that eclipsed the first quarter of this year by 16% and the second quarter of 2023 by 8%. These new threat actors emerged following the takedown of LockBit and BlackCat by international law enforcement.

Ransomware Demands and Payouts on the Rise

Based on Corvus data, the Q2 report found that the average ransomware demand reached $1,571,667. That represents a quarterly increase of 102% and the highest figure Corvus has reported since the second quarter of 2022. The average ransom payment also reached a new high of $626,415. 

According to the research, a company’s backup strategies can impact payouts. Businesses without robust backups are more than twice as likely to surrender to ransom demands during an attack. Conversely, organizations with effective backup strategies have incurred median claim costs 72% lower than their less-prepared counterparts.

Ransomware Operators Continue Evolving Tactics

Recognizing that many organizations possess valuable and sensitive information, ransomware operators have evolved their tactics by engaging in double-extortion schemes where operators encrypt data, exfiltrate it and then threaten to release it on the dark web. So far in 2024, data theft was involved in 93% of ransomware incidents observed by Corvus, up from 88% in 2023. Using double-extortion schemes, even organizations with secure backups may be forced to pay ransoms, often to prevent the exposure of stolen data.

“Data theft has become the technique employed by attackers to secure maximum payouts from their victims, whether or not they have secure backups,” said Jason Rebholz, Chief Information Security Officer at Corvus Insurance. “A robust security plan is never one layer deep. While a sound backup strategy is important, it cannot mitigate these threats alone. Businesses must utilize a multi-layered security strategy based on a resilient environment with fast detection and prevention capabilities.”

Key Industry Trends: Construction Becomes the Most Frequently Targeted Industry in Q2

While the Corvus study found that industries most affected by ransomware attacks remained largely similar from the first quarter, Construction moved from second to first in the second quarter. In addition, Government and Oil and Gas joined the list, and ransomware attacks targeting the Software Development and IT Services and IT Consulting sectors were up 257% and 54%, respectively. RansomHub was responsible for 16% of the reported victims within the IT Services industry, followed by PLAY and BlackSuit, which accounted for an additional 18%.

To learn more, a webinar called “Q2 Cyber Threat Report: Ransomware Season Arrives Early” is scheduled for August 29 and will feature Corvus experts.