A quarter (25%) of Irish SMEs have paid out ransoms to cybercriminals on multiple occasions, the latest annual survey by IT and cybersecurity firm Typetec has revealed.

A third (33%) of SMEs in Ireland have paid ransoms overall, with nearly three-quarters of them (74%) having done so more than once. Last year the surveyed found that 52% of SMEs had paid ransoms to cybercriminals, indicating some improvement year-on-year.

200 small and medium-sized business owners were questioned for the survey, conducted by Censuswide, and that average cost of a ransom has increased slightly from €22,712 last year to €22,773 this year.

More than two-thirds of SMEs that paid a ransom still had their sensitive data leaked, with over half (52%) saying their data had been put on the dark web. Of the SMEs that have already paid a ransom, 71% feel they are now more vulnerable to attack.

The survey also found that over half of SMEs (52%) hold a cryptocurrency reserve in case needed. A further 69% hold cybercrime insurance, but 71% believe the cyber insurance market is fuelling a ransomware crisis.

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"Our new research highlights that a significant number of Irish SMEs are paying out ransoms to cybercriminals, often on a regular basis. Crypto reserves and cyber insurance are also part of the recovery tactics of most businesses surveyed," said Trevor Coyle, chief technology officer at Typetec.

"It’s crucial for businesses to have a coordinated cybersecurity strategy in place, with a particular emphasis on best practice basics such as continuous cybersecurity awareness training for employees. 

"While the majority of business owners believe that the cyber insurance market is fuelling the ransomware crisis, unfortunately many Irish SMEs are getting caught in the crossfire.

"Ultimately, they need to be more proactive about putting the right cybersecurity measures in place as the ostrich approach is not acceptable anymore," he concluded.

The survey was conducted from 10-18 August among SMEs in the Republic of Ireland with up to 150 employees.

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