Cyber Threat Landscape: Data Theft Takes the Lead

In a shift that’s reshaping cybersecurity strategies, data theft has overtaken ransomware as the dominant cyber threat, according to Resilience’s latest Cyber Risk Report. While encryption-based attacks are declining, data theft is on the rise. In 2025, data theft claims soared to 65% in the latter part of the year from 49% earlier, highlighting a significant trend change.

This new threat isn’t just about lost data—it’s the reputational damage, legal challenges, and regulatory issues that come along. Traditional backup strategies are proving less effective, as data breaches focus on extorting victims without encryption.

Interestingly, midyear data from Resilience revealed a 53% drop in cyber insurance claims during the first half of 2025 despite rising costs per ransomware incident. Ransomware, once accounting for 43% of claims, saw a drop as vendor-related incidents rose from 6% to 27%. Resilience advises against paying ransoms in data theft cases, warning it may lead to further attacks.

Phishing and AI: An Escalating Concern

The report also highlights a surge in phishing attacks, jumping to 50% of reported losses in 2025 from 21% in 2024. AI-powered phishing campaigns saw a remarkable 54% success rate, raising the stakes for cybersecurity teams.

Furthermore, claims linked to wrongful data collection have more than doubled, largely driven by California’s privacy laws. Legal disputes are rising, with over 1,500 lawsuits filed regarding privacy issues, complicating the insurance landscape as some markets limit wrongful collection coverage.

Looking ahead, Resilience warns that the focus on extortion attacks will persist into 2026, with deepfakes and AI breaches becoming more frequent. They urge a shift to prevention strategies like adopting a zero-trust security framework to tackle these challenges head-on.

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