The business of ransomware and its effects on business
Noelle Warkentin, Yuxuan Zhang, Richard W Frank · Journal of Cyber Security Technology · 2025
Ransomware is a growing problem that not only affects a company’s financials but also leads to a loss of productivity, which can be difficult to quantify. This criminal extortion preys upon the vulnerability of the average computer user, and Canadian companies are at an increasing risk of experiencing a ransomware attack. The purpose of the current study was to survey a wide range of Canadian businesses about their experiences with ransomware attacks while also gaining insight on this issue with smaller businesses to address a gap in the research. Businesses were questioned about details regarding the ransomware attack(s), which include th following: reactions to the attack, the extent of the damage caused, and whether the business used internal or external IT services. Results reveal critical insights into the prevalence, financial impact, and organizational responses to ransomware attacks. Notably, 29% of businesses reported experiencing at least one ransomware attack, with most cases in Ontario (43%), and 85% of businesses contacted law enforcement following an attack, though satisfaction with police assistance varied. Comparative analysis showed no statistically significant differences by company size in having insurance, contacting police, or ransom demands, suggesting that both small and large companies face similar challenges in ransomware preparedness and response.