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Recovery Costs for Ransomware Attacks on 2 Critical Infrastructures Quadruples to $3m in 1 Year – Sophos Survey Finds

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Sophos, a global leader of innovative security solutions for defeating cyberattacks, today released a sector survey report, “The State of Ransomware in Critical Infrastructure 2024,” which revealed that the median recovery costs for two critical infrastructure sectors, Energy and Water, quadrupled to $3 million over the past year.

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This is four times higher than the global cross-sector median. In addition, 49% of ransomware attacks against these two critical infrastructure sectors started with an exploited vulnerability.

Data for the State of Ransomware in Critical Infrastructure 2024 report comes from 275 respondents at energy, oil and gas, and utilities organizations, which fall under the Energy and Water sectors of CISA’s 16 defined critical infrastructure sectors.

The results for this sector survey report are part of a broader, vendor-agnostic survey of 5,000 cybersecurity/IT leaders conducted between January and February 2024 across 14 countries and 15 industry sectors.

“Criminals focus where they can cause the most pain and disruption so the public will demand quick resolutions, and they hope, ransom payments to restore services more quickly.

“This makes utilities prime targets for ransomware attacks. Because of the essential functions they provide, modern society demands they recover quickly and with minimal disruption,” said Chester Wisniewski, global Field CTO.

“Unfortunately, public utilities are not only attractive targets but vulnerable to attacks on many fronts, including the requirement for high availability and safety, as well as an engineering mindset focused on physical security.

“There’s a preponderance of older technologies configured to enable remote management without modern security controls like encryption and multifactor authentication. Like hospitals and schools these utilities are frequently operating with minimal staffing and without the IT staffing required to stay on top of patching, the latest security vulnerabilities and the monitoring required for early detection and response.”

On top of growing recovery costs, the median ransom payment for organizations in these two sectors jumped to more than $2.5 million in 2024—$500,0000 higher than the global cross-sector median.

The Energy and Water sectors also reported the second highest rate of ransomware attacks. Overall, 67% of the organizations in these sectors reported being hit by ransomware in 2024, in comparison to the global, cross-sector average of 59%.

Other findings from the report include:

·       The energy and water sectors reported increasingly longer recovery times. Only 20% of organizations hit by ransomware were able to recover within a week or less in 2024, compared to 41% in 2023 and 50% in 2022. Fifty-five percent took more than a month to recover, up from 36% in 2023. In comparison, across all sectors, only 35% of companies took more than a month to recover

·       These two critical infrastructure sectors reported the highest rate of backup compromise (79%) and the third highest rate of successful encryption (80%) when compared to the other industries surveyed

“This once again shows that paying ransom payments almost always works against our best interests. An increasing number (61%) paid the ransom as part of their recovery, yet the amount time it took to recover was extended.

“Not only do these high rates and amounts of ransoms encourage more attacks on the sector, but they are not achieving the claimed goal of shorter recovery times,” said Wisniewski.

“These utilities must recognize they are being targeted and take proactive action to monitor their exposure of remote access and network devices for vulnerabilities and ensure they have 24/7 monitoring and response capabilities to minimize outages and shorten recovery times.

“Incident response plans should be planned in advance, the same as for fires, floods, hurricanes and earthquakes, and be rehearsed on a regular schedule.”


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

NCC Waxes Worriedly as Telcos Lose Billions to Vandalism, Theft

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Dr. Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC), has said that telecommunications operators in Nigeria are currently facing immense challenges with frequent fibre cuts, vandalism, and theft of equipment costing them billions of Naira.

NCC Waxes Worriedly as Telcos Lose Billions to Vandalism, Theft

Maida stated this against the backdrop of the recent declaration of telecom infrastructure as Critical National Information Infrastructure (CNII) by President Bola Tinubu through an Executive Order.

Delivering the keynote address at the launch of the CNII Protection and Resilience Workshop, organized by the National Cybersecurity Coordination Centre (NCCC) under the Office of the National Security Adviser, Maida said Nigeria is now set to address the challenge.

While noting that workshop series was to drive the urgent implementation of the CNII Executive Order as a major step towards securing Nigeria’s communications and digital infrastructure, the NCC boss said:

“The telecom industry faces significant challenges, including frequent fibre cuts, vandalism, and theft, which cost operators billions of Naira in revenue and billions of Naira in repair expenses.

“Additionally, restricted access to telecom facilities by property owners and government entities hampers network expansion efforts, limiting connectivity and impacting service quality.”

Over the years, stakeholders in the Nigerian ICT sector have been calling on the government to designate telecom infrastructure as a critical national asset to address the persistent attacks on the infrastructure across the country.


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Telcos Key to Bridging Financial Gaps, Fostering Inclusion – MTN’s Tobe Okigbo 

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Telecommunications operators will undoubtedly play an indispensable role in bridging financial gaps and fostering inclusion, particularly in Nigeria.

Tobechukwu Okigbo

Tobe Okigbo, Chief Corporate Services & Sustainability Officer of MTN Nigeria, underscored this role during a panel discussion at the Africa Breakfast Convos, held on the sidelines of the recent United Nations General Assembly (UNGA79).

Okigbo emphasised that telcos can leverage their extensive networks to connect Nigerians across diverse regions to essential financial services.

“Telcos are very instrumental in bridging the gap and promoting financial inclusion. Given our extensive reach, I firmly believe that telecommunications companies are instrumental in broadening access to digital financial services,” he said.

However, there are serious challenges facing the industry that make it difficult for operators to fill this role. “One of the biggest challenges we have in bridging the gap is access to devices. It goes beyond the lack of education because Nigerians can easily adapt to systems. However, not everyone has access to devices that enable digital financial services,” he stated, expressing optimism that solutions would emerge within the next three years to enhance financial inclusion in Nigeria.

The panel conversation, featuring Okigbo, in discussion with Claudine Moore of Allison Worldwide, Iyin Aboyeji of Future Africa, and Anie Akpe of African Women In Tech (AWIT), at Stagwell Commons inside The World Trade Centre in New York City, touched on wide-ranging issues ranging from digital transformation to Africa’s business landscape, as well as the continent’s sustainable growth.

Tobe Okigbo lauded the innovation of African businesses across diverse sectors, highlighting their capacity to turn challenges into lucrative opportunities.

“African businesses are not just solving local issues; they’re turning billion-dollar problems into billion-dollar opportunities,” he said.

A World Bank report recently revealed that although 49 per cent of adults in Sub-Saharan Africa have bank accounts, a rate that has doubled since 2011, there are still significant gaps in account ownership for women, uneducated persons, young adults and people in rural communities.

The MTNN CCSSO revealed that MTN Nigeria has been at the forefront of financial inclusion initiatives, offering an array of digital financial services with its fintech platform, MoMo PSB.


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ACTIS Threatens MTN with Loss of 80m Subscribers if It Hikes Tariff

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Association of Telephone Cable TV And Internet Subscribers of Nigeria (ATCIS), has warned MTN Nigeria, the largest mobile network operator in Nigeria, to desist from increasing its tariffs or else it will lose about 80 million customers who have subscribe to its services in the country.

ACTIS Threatens MTN with Loss of 80m Subscribers if It Hikes Tariff

Recall that MTN recently raised alarms over a potential shutdown if tariffs are not increased to address rising operational costs.

Karl Toriola, chief executive officer, had highlighted that the telecommunications sector is facing severe financial strain, especially from escalating diesel prices required to power base transceiver stations.

But Sina Bilesanmi, national president of ATCIS, said the service shut down would not affect its subscribers, urging the telco to desist from threatening its customers.

According to him, “when ATCIS saw it on Tuesday, I shared it on the ICAF platform, ATCIS wrote MTN CEO to go ahead with the 80 million+ subscribers, but have promised them with their association body, with the power of the ATCIS Masses being the National President of telecom subscribers in Nigeria, if MTN try it, that may be the end of MTN.”

MTN claimed it has invested N2.6 billion in corporate social responsibility, according to its 2023 Sustainability Report, is currently operating on profits accumulated over two decades. However, he stressed that this is unsustainable.

“We must return the industry to profitability,” Toriola emphasized, adding that the company’s reserves are depleting.

Earlier this year, telecom operators called for the first tariff hike in 11 years, citing the need to manage rising costs and maintain service quality. Without such an increase, they warned, the financial viability of the sector, along with service standards, would continue to decline.

Toriola also pointed out that MTN, once one of Nigeria’s top corporate taxpayers, has seen its tax contributions decline due to the financial challenges. In the first half of 2024, MTN reported a staggering N519.1 billion loss, largely attributed to foreign exchange losses from the naira’s devaluation and high inflation.

In addition, Toriola revealed that MTN may suspend Unstructured Supplementary Service Data (USSD) banking services due to a N250 billion debt owed by Nigerian banks. “We are seeking regulatory approval to halt support for USSD services used for banking transactions unless the debt is resolved and tariffs are adjusted,” he said.

 

 

 


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