Why Ransomware Payments Are Rising Despite Fewer Attacks

Last Updated: January 16, 2026By

The Ransomware Dilemma Unpacked

The world of ransomware is evolving. Criminals are becoming more strategic, focusing their attacks on organizations at critical times to inflict maximum damage. This calculated approach has left companies with little choice but to pay ransoms, leading to an increase in payouts. While cybersecurity investments are at an all-time high, the financial impact of ransomware is paradoxically worsening.

Interestingly, the number of ransomware incidents seems to be decreasing. In 2024, businesses faced about eight attacks on average, which dropped to five or six in 2025. However, the average ransom shot up to $3.6 million—over $1 million more than the previous year. This scenario highlights a puzzling situation where fewer attacks are resulting in greater financial consequences.

Why Ransom Payments are Rising

Companies often find paying ransoms to be less costly than dealing with prolonged operational disruption. In many cases, the expenses associated with halted operations outweigh the ransom itself, making payment seem like a practical solution.

Cyber insurance adds another layer of complexity. While it offers financial relief, it can also perpetuate the ransomware cycle. Moreover, attackers now linger within systems longer, averaging about two weeks of dwelling time, which lets them analyze and compromise critical assets.

The Importance of Resilience

To break the ransomware cycle, a shift from reactive tactics to proactive resilience is necessary. This involves maintaining constant monitoring, enhancing system visibility, and crafting strategies to tackle AI-driven threats. By helping clients navigate these challenges, MSPs and MSSPs can build trust and drive change.

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