Severe cyber-attacks are crippling business operations, with nearly half of organisations reporting productivity losses lasting three months or more in 2024, according to the latest figures from Artic Wolf.

The cyber firm’s State of Cybersecurity: 2025 Trends Report reveals that 70% of organisations reporting a data breach experienced at least one significant cyber-attack last year, with almost a quarter (24%) of those hit suffering productivity losses for six months or longer.

The numbers suggest these breaches are becoming all too common, with Arctic Wolf finding that just 25% of security leaders could say with any confidence that their organisation had not suffered a breach in the last twelve months, a significant decrease over last year (35%).

Part of the problem is that businesses are not taking simple security measures, as more than half (56%) of the organisations that reported a significant cyber-attack had not implemented multi-factor authentication (MFA), regarded as a fundamental, non-negotiable element of security.

Ransomware is Still a Major Problem

The cost of cyber-attacks is hitting harder than ever, with the report finding that more than three-quarters (76%) of organisations that experienced a significant ransomware attack elected to pay the ransom.

The overwhelming majority of ransomware victims (90%) chose to engage the services of a professional ransomware negotiator, leading to reduced payouts for around half of those hit, while only 30% of organisations that handled negotiations themselves were able to secure a reduction.

With nearly half (48%) of security leaders saying they had no choice but to pay a ransom to recover, it’s clear why many focus on minimising the fallout, even as experts warn that only depriving attackers of payouts will stop ransomware for good.

While ransomware might be grabbing all the headlines, Arctic Wolf’s global survey of 1,200+ IT and cybersecurity leaders shows it’s the quieter, smaller-scale threats leaving a bigger mark. 

Malware infection and business email compromise (both 35%) were identified as the most common culprits behind severe cyber-attacks last year, well ahead of ransomware at just 23%.

AI Emerges as a Leading Concern

Although the threat of ransomware, malware and email compromise aren’t going anywhere, AI has quickly overtaken them all as the main source of sleepless nights for security pros. 

For the first time, Arctic Wolf found that AI has surpassed ransomware as the leading concern for security leaders, with nearly a third (29%) citing AI and data privacy issues as their top priority, far ahead of issues like credential theft and identity concerns (15%), social engineering and phishing (10%), as well as unpatched vulnerabilities (6%).

Recommended reading

• 87% of Firms Hit By AI Cyber-attacks
• Cyber-Attack Surface “Impossible to Control”
• Machine Identities Now Outnumber Humans 40,000 to 1

It’s not just AI-enabled threats that are concerning, either, with security teams doing their best to head off potential issues with AI use inside organisations.

While roughly two-thirds of those surveyed reported that their company either already has a policy in place outlining the proper use of AI (56%) or plans to implement such a policy (11%), nearly a third have outright forbidden usage of LLMs and genAI (30%) or plan to do so (2%).

These emerging threats are driving more investment in cybersecurity programmes, with data transformation and AI adoption cited as the top factor in cyber strategies over the next year and 84% of firms planning to invest heavily in their security processes. 

“AI’s rapid emergence is creating new uncertainty, not only in how attackers operate but also in how defenders must respond,” said Dan Schiappa, president for technology and services at Arctic Wolf.

“As organisations race to implement AI-powered tools, it is critical they also do not lose sight of core security fundamentals like patching vulnerabilities, implementing detection and response, and maintaining a current incident response plan.”

Don’t Miss Scotland’s Biggest Tech Event!

Join us at DIGIT Expo West on 5th June at the SEC Glasgow. Get leading industry insights across AI, Cyber Security, and Data, and grow your network at Scotland’s largest gathering of tech leaders – with 1500+ attendees, 50+ speakers, and 50+ exhibitors.

Register your FREE place now at www.digitexpowest.com