Zscaler’s Annual Ransomware Report Uncovers Record-Breaking Ransom Payment of US$75 Million, Reinforcing the Need for Zero Trust
Rhea-AI Summary
Zscaler (NASDAQ: ZS) has released its 2024 Ransomware Report, revealing an 18% increase in ransomware attacks year-over-year and a record-breaking ransom payment of US$75 million. The report highlights that the manufacturing industry was the most targeted, facing more than twice as many attacks as any other sector. The United States remains the top target, accounting for nearly 50% of all incidents globally.
The report identifies LockBit, BlackCat, and 8Base as the most active ransomware families. Zscaler emphasizes the need for organizations to prioritize Zero Trust architecture to strengthen their security posture against ransomware attacks. The company offers solutions to help enterprises stop ransomware at every stage of the attack cycle, including minimizing the attack surface, preventing initial compromise, eliminating lateral movement, and stopping data loss.
Positive
- Zscaler's ThreatLabz tracked an 18% increase in ransomware attacks, positioning the company as a leader in threat intelligence
- The company's Zero Trust Exchange platform offers comprehensive protection against ransomware attacks, potentially driving demand for Zscaler's services
- Zscaler's collaboration with international law enforcement agencies in operations like Duck Hunt and Endgame demonstrates its strong position in the cybersecurity industry
Negative
- The increasing sophistication and frequency of ransomware attacks may challenge Zscaler's ability to provide effective protection, potentially impacting customer trust
- The record-breaking US$75 million ransom payment highlights the growing financial risks for businesses, which could lead to increased pressure on cybersecurity budgets and affect Zscaler's pricing strategies
Insights
The Zscaler ThreatLabz 2024 Ransomware Report reveals alarming trends in the cybersecurity landscape, with significant implications for businesses and investors. The 18% year-over-year increase in ransomware attacks and the record-breaking
From a security perspective, the report underscores the critical need for robust cybersecurity measures. The emergence of 19 new ransomware families, bringing the total to 391, indicates the rapidly evolving nature of these threats. This proliferation suggests that cybersecurity companies like Zscaler may see increased demand for their services, potentially boosting their market value.
The report's findings on industry-specific targets are particularly noteworthy. The manufacturing sector's vulnerability, facing twice as many attacks as any other industry, could lead to increased cybersecurity spending in this sector. Similarly, the healthcare and technology sectors, being prime targets, may need to bolster their defenses, creating opportunities for cybersecurity firms.
Investors should pay attention to the geographical distribution of attacks. With the United States experiencing nearly
The rise of ransomware-as-a-service models and AI-powered attacks suggests a shift in the threat landscape. This evolution may benefit companies specializing in advanced threat detection and AI-driven security solutions. Zscaler's emphasis on Zero Trust architecture aligns with this trend, potentially strengthening its market position.
The Zscaler ThreatLabz 2024 Ransomware Report presents significant financial implications for both the cybersecurity industry and potential target sectors. The record-breaking
For Zscaler (NASDAQ: ZS) and its competitors, this report could serve as a powerful marketing tool, potentially driving increased adoption of their services. The
Investors should note the potential impact on various sectors:
- Manufacturing: As the most targeted industry, we may see increased cybersecurity spending in this sector, potentially affecting profit margins but benefiting cybersecurity providers.
- Healthcare and Technology: These sectors, being prime targets, may need to allocate more resources to cybersecurity, potentially impacting their financial performance.
- Education and Financial Services: Their presence in the top 5 targeted industries suggests a need for increased cybersecurity investment in these sectors as well.
The geographical distribution of attacks, with the U.S. accounting for nearly half, suggests that U.S.-based companies may face higher cybersecurity costs. This could create a competitive advantage for companies with robust security measures already in place.
The rise of ransomware-as-a-service models and AI-powered attacks indicates a shift in the cybersecurity landscape. Companies that can adapt to these evolving threats, like Zscaler with its Zero Trust platform, may see increased market share and potential stock price appreciation.
Key Findings:
- ThreatLabz tracked an
18% increase in ransomware attacks year-over-year - Manufacturing, healthcare, and technology sectors were the top targets of ransomware attacks
- The United States remains the top target of ransomware, experiencing nearly
50% of overall attacks, followed by the United Kingdom, Germany, Canada, and France - ThreatLabz identified 19 new ransomware families during the analysis period, bringing the total number to 391 since tracking started
SAN JOSE, Calif., July 30, 2024 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today published its Zscaler ThreatLabz 2024 Ransomware Report, which analyzed the ransomware threat landscape from April 2023 through April 2024. The annual report details the latest ransomware attack trends and targets, ransomware families, and effective defense strategies. Findings in the report uncovered an
“Ransomware defense remains a top priority for CISOs in 2024. The increasing use of ransomware-as-a-service models, along with numerous zero-day attacks on legacy systems, a rise in vishing attacks and the emergence of AI-powered attacks, has led to record breaking ransom payments,” said Deepen Desai, Chief Security Officer at Zscaler. “Organizations must prioritize Zero Trust architecture to strengthen their security posture against ransomware attacks. This is where an AI-powered Zero Trust platform like Zscaler helps organizations fast-track their segmentation journeys, reducing the blast radius as well as shutting down unknown vectors for future AI-driven attacks.”
Top industries impacted by ransomware
Ransomware attacks pose significant risks to businesses of all sizes and industries. The manufacturing industry was by far the most targeted according to the report, facing more than twice as many attacks as any other industry.
Industries face unique ransomware challenges based on how they operate, handle data, and their technology infrastructure. Despite the variables, ransomware extortion attacks have consistently surged, with the number of victim companies listed on data leak sites increasing by nearly
Most targeted industries in ransomware attacks
- Manufacturing
- Healthcare
- Technology
- Education
- Financial Services
United States remains top target
The United States once again faced a higher volume of ransomware attacks than any other country, accounting for nearly half of all incidents globally.
Most targeted countries for ransomware attacks:
- United States (
49.95% ) - United Kingdom (
5.92% ) - Germany (
4.09% ) - Canada (
3.51% ) - France (
3.26% )
When comparing year-over-year change in ransomware attacks, the US, Italy and Mexico saw the highest increase in ransomware attacks, with staggering rises of
Most active ransomware families
While ransomware and other cyberthreats continue to evolve in complexity and sophistication, staying informed about the most prevalent and dangerous ransomware families is crucial for maintaining an effective security posture.
ThreatLabz identified the most active ransomware families:
- LockBit (
22% ) - BlackCat (aka ALPHV) (
9% ) - 8Base (
8% )
Top five ransomware families to watch in 2024-2025:
- Dark Angels
- LockBit
- BlackCat
- Akira
- Black Basta
Zscaler helps enterprises stop ransomware with zero trust security
From initial reconnaissance and compromise to lateral movement, data theft and payload execution, Zscaler helps organizations stop ransomware at every stage of the attack cycle:
- Minimize the attack surface: Zscaler effectively minimizes the attack surface by hiding users, applications and devices behind a cloud proxy, where they are not visible or discoverable from the internet.
- Prevent initial compromise: The Zscaler Zero Trust Exchange employs extensive TLS/SSL inspection, browser isolation, advanced inline sandboxing and policy-driven access controls to prevent users from accessing malicious websites as well as detect unknown threats before they reach your network.
- Eliminate lateral movement: Leverage user-to-app or app-to-app segmentation so that users connect directly to applications (and apps to other apps), not the network, eliminating the risk of lateral movement.
- Stop data loss: Inline data loss prevention measures, combined with full TLS/SSL inspection, effectively thwart data theft attempts. Zscaler ensures that data is secured both in transit and at rest.
For a deeper dive into best practices for protecting your organization and the full findings, download the Zscaler ThreatLabz 2024 Ransomware Report.
Methodology
The research methodology for this report is a comprehensive process that uses multiple data sources to identify and track ransomware trends. The report team collected data from a variety of sources between April 2023 and April 2024.
To identify and understand ransomware activity, Zscaler utilizes its global security cloud processing over 500 trillion daily signals, blocking 9 billion threats daily, and delivering 250,000+ security updates. The ThreatLabz Threat Intelligence team tracks ransomware families at scale through reverse engineering and automating malware analysis to develop effective response strategies. ThreatLabz also works closely with international law enforcement agencies and has played a significant role in recent actions, including Operation Duck Hunt and Operation Endgame.
About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 150 data centers globally, the SSE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform.
Media Contact:
Zscaler PR
press@zscaler.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/33c744e3-5699-4d2c-a097-5be7fc622f1e
FAQ
What was the record-breaking ransom payment reported in Zscaler's 2024 Ransomware Report?
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