OpenText survey: rise in software supply chain attacks

OpenText has released its 2024 Global Ransomware Survey, highlighting significant trends in cyberattacks, specifically within software supply chains, and increasing use of generative AI for phishing scams.

Despite efforts by governments to enhance cybersecurity measures, the survey reveals that a significant portion of businesses continue to pay ransoms following attacks, with payments mostly ranging from USD $1 million to USD $5 million.

The survey found that respondents are overwhelmingly concerned about supply chain attacks. Those who reported a ransomware attack this year were more likely to report that it came from their supply chain. Forty percent of respondents have been impacted or don't know by a ransomware attack originating from a software supply chain partner.

Of the respondents who experienced a ransomware attack in the past year, 62% have been impacted by a ransomware attack originating from a software supply chain partner and 90% are planning to increase collaboration with software suppliers to improve security practices in the next year. A majority (91%) of respondents are concerned about ransomware attacks on a company's downstream software supply chain, third-party and connected partners.

When asked if recent breaches by key industry vendors like Change Healthcare, Ascension and CDK Global that caused sector-specific outages and losses made them more concerned about being impacted by a supply chain attack, almost half (49%) are more concerned – enough to consider making vendor changes. Almost three-quarters of respondents (74%), including those who have experienced a ransomware attack in the past year, have a formal process for assessing the cybersecurity practices of your software suppliers. A surprising 26% do not or don't know.

Almost three-quarters of companies have experienced a ransomware attack this year, with more SMBs than large enterprises having experienced an attack. Of the 48% of respondents who have experienced a ransomware attack, 73% have experienced a ransomware attack in the last year, only a quarter have not (25%) and 2% don't know.

More SMBs vs. large enterprises have experienced a ransomware attack. Over three-quarters (76%) of SMBs reported experiencing a ransomware attack in the past year while 70% of large enterprises reported experiencing a ransomware attack in the past year. Of those who experienced a ransomware attack in the past year, a little less than half (46%) paid the ransom. 31% of their ransom payments were between $1 million and $5 million. At the same time, almost all (97%) successfully restored their organization's data. Only 3% did not.

Respondents experienced more phishing attacks due to the increased use of AI, especially among those who have experienced a ransomware attack. More than half (55%) of respondents said their company is more at risk of suffering a ransomware attack because of the increased use of AI among threat actors. Almost half (45%) of respondents have observed an increase in phishing attacks due to the increased use of AI. Of those who experienced a ransomware attack, 69% have observed an increase in phishing attacks due to the increased AI usage.

Organisations, including SMBs, continue to invest more in cloud security and security awareness and phishing training. Cloud security is the cybersecurity area that respondents say their companies are investing in most (66%). In 2024, 62% of SMB respondents are investing more in cloud security. In contrast, in 2023, 56% were investing more in cloud security. In 2022, only 39% of SMB respondents were using cloud security solutions. A majority (91%) of respondents said their companies require employees to participate in security awareness or phishing training. Only 9% do not. In 2024, 66% conducted at least a quarterly training. Compared to 2023 and 2022, organisations are requiring employees to participate in security awareness training more frequently. In 2023, only 39% conducted training once per quarter. In 2022, only 24% of SMBs conducted security awareness training once per quarter.

The survey also underlined that almost half of those affected by ransomware recommended payment, which could potentially drive further attacks. Muhi Majzoub, Executive Vice President and Chief Product Officer of OpenText, commented, "SMBs and enterprises are stepping up their efforts against ransomware, from assessing software suppliers to implementing cloud solutions and boosting employee education.

"However, the increase in organisations paying the ransom only emboldens cybercriminals, fueling more relentless attacks. Businesses must proactively defend against sophisticated threats like supply chain vulnerabilities and AI-driven attacks, while ensuring resilience through data backups and response plans, to avoid empowering the very criminals seeking to exploit them."