Ransomware attacks are influencing price inflation, according to a new UK survey by Censuswide, commissioned by Veeam Software, a leader in Data Protection and Ransomware Recovery. The study of 100 directors who had suffered at least one successful ransomware attack within the last 18 months also revealed correlations between ransomware, layoffs and business closures, proving the vital need for businesses to prioritise resilience.
The findings show that large organisations are having to increase costs to customers by an average of 17% following an attack. Nearly a quarter of companies (22%) said they increased prices by 21-30%, while 6% increased prices by 31-40%. In total, a massive 68% of companies increased prices for customers by 11% or more as a direct result of being attacked. Just 1% of respondents were able to keep prices flat.
According to the Veeam Data Protection Trends Report 2023, 76% of UK companies fell victim to a ransomware attack last year, highlighting the scale of the challenge and how it is becoming an unavoidable fact of business life. However, the scale of the ransomware risk landscape appears to be prompting action, with 43% investing in a new backup and recovery strategy after suffering an attack.
With UK inflation standing at 4.6% in October 2023, ransomware could be impacting prices far more than other market forces. However, increasing consumer costs is far from the only measure companies are turning to after an attack. According to the findings, 78% of UK businesses reduced staff, with 47% doing so in the first six months after an attack.
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