Ransomware Costs Rise 17% as Claims Drop Across Healthcare, Retail, Manufacturing

Cyber insurer Resilience's 2025 midyear reports reveal a complex ransomware landscape where the number of claims dropped by over 50%, yet the average cost per ransomware attack rose by around 17%. Ransomware remains the dominant cyber threat, accounting for 91% of incurred losses in Resilience's portfolio, heavily targeting healthcare, retail, and manufacturing sectors, with extortion demands reaching as high as $4 million. Despite fewer claims, more sophisticated tactics, including AI-powered social engineering and phishing, have driven up financial damages, with social engineering responsible for over half of incurred claims and losses. Vendor-related risks have decreased but continue to cause significant downstream losses, underscoring the importance of monitoring third-party security. While some positive signs like reduced recovery costs and a lower rate of ransom payments were noted, the evolving threat landscape, including triple extortion and AI-enhanced attacks, demands ongoing vigilance and adaptive defenses. Resilience's leadership emphasizes that cybercrime evolves in waves, exploiting defenses until new vulnerabilities arise, making awareness and financial impact understanding critical to mitigating damage.