Ransomware's True Impacts

“In 2023, ransomware operators escalated their activities, striking major institutions and essential infrastructure such as hospitals, schools, and government bodies” (Chainalysis Team, “Ransomware Hit $1 Billion in 2023”). This section explores which industries have been most severely affected by that rise and why—specifically financial institutions, healthcare organizations, and small to mid-sized businesses (SMBs).

Ransomware has increasingly become a critical threat to financial services. In 2023, 81% of financial institutionsreported the encryption of their sensitive data—the highest percentage in three years (Sophos, The State of Ransomware in Financial Services 2024). Encryption in these attacks locks essential systems and files, making them inaccessible to staff and customers until a ransom is paid. The risk is intensified by the financial sector’s dependence on digital platforms. Banks and payment systems rely on constant uptime, meaning any downtime can block clients from transferring funds or accessing accounts.

According to the IBM X-Force Threat Intelligence Index 2024, nearly 18% of all global cyberattacks targeted financial institutions. Moreover, a related survey found that 78% of banking executives identified cyber risk and data protection as key contributors to rising operational risk, and one in four reported experiencing between one and five successful breaches (Lipana and Ramos). This awareness among lenders shows how ransomware threats not only disrupt banking operations but also undermine financial confidence, reducing credit availability to affected businesses.

Hospitals and healthcare organizations face a different kind of vulnerability—one that directly endangers lives. During the 2017 WannaCry outbreak in the United Kingdom, the National Health Service (NHS) had to cancel around 19,000 medical appointments and saw over 80 hospital trusts severely disrupted. Systems were inaccessible for nearly a week, with total losses reaching £92 million when factoring in downtime and recovery costs (National Health Executive). Unlike other industries, the consequences in healthcare extend beyond lost revenue—delays in treatment and inaccessible patient data can endanger human life. Attackers exploit this urgency, knowing hospitals are more likely to pay quickly to restore systems.

Financial losses in healthcare further highlight the scale of this problem. From 2020 to 2025, the industry is projected to spend $125 billion on cybersecurity and breach response (Ting). These funds could otherwise have supported research or patient care. In 2023, healthcare also reported the highest rate of security incidents caused by software or hardware vulnerabilities, with 80% of organizations stating that most of their breaches stemmed from such weaknesses (Theocharidou et al.). This demonstrates that hospitals are not only targeted more often but are also easier to exploit due to fragile digital defenses.

Small and medium-sized businesses (SMBs) represent the final—and perhaps most vulnerable—group hit hardest by ransomware. Unlike large corporations with extensive cybersecurity budgets, “it’s the SMBs who struggle the most” (Lostri et al.). Limited financial and technical resources leave them disproportionately affected by attacks. A Mastercard survey found that 46% of SMBs had experienced a cyberattack, and nearly 20% of those victims went bankrupt or permanently closed afterward (“Small Business Cybersecurity: Survey Shows Reason for Worry”).

The impact is amplified by high ransom demands and incomplete data recovery. The average ransom paid by mid-sized firms was $170,404, yet only 65% of encrypted data was restored afterward (Sophos, The State of Ransomware 2021). Losing more than a third of essential data—along with reputation and revenue—can devastate an SMB. Nearly 75% of businesses say a ransomware attack could destroy their operations, while 60% believe they are likely to experience one within a year (Datto).

Those fears are justified: reports indicate that over 40% of cyberattacks in 2021 were directed at SMBs (Lostri et al.). As cybercriminals’ methods grow more advanced, SMBs remain reliant on basic defenses. In fact, 71% of cybersecurity leaders at the Annual Meeting on Cybersecurity 2024 believe small businesses have reached a “critical tipping point,” unable to keep up with the growing sophistication of digital threats (World Economic Forum, Global Cybersecurity Outlook 2025). Without stronger safeguards and support, SMBs risk contributing to widespread local and economic decline.