Ransomware Reality Check: 50% of Companies Pay Demands as Attacks Intensify

The cybersecurity landscape reached a sobering milestone in 2025 as Sophos' annual State of Ransomware report revealed that 49% of victim organizations chose to pay ransom demands—a significant increase from previous years. This trend persists despite widespread advisories against payment from law enforcement and security experts.

The Surrender Calculus
Organizations report paying ransoms primarily when:

• Critical operations face prolonged disruption (72%)
• Data exfiltration threatens regulatory penalties (58%)
• Recovery costs exceed ransom demands (41%)

'We're seeing ransomware groups employ triple-extortion tactics,' explains Mark Loman, Sophos' Director of Engineering. 'They encrypt systems, steal data, then threaten to notify customers and regulators—creating unbearable pressure.'

AI as a Countermeasure
As attacks grow more sophisticated, enterprises are turning to AI-powered solutions. ServiceNow's Now Assist platform demonstrates how machine learning can:

• Automate threat detection in IT service management systems
• Generate incident response playbooks within seconds
• Prioritize recovery workflows based on business impact

'Automation reduces the window of vulnerability,' notes ServiceNow's Chief AI Officer. 'When systems can self-heal from known attack patterns, human teams focus on strategic response.'

The Ethical Quagmire
Payment decisions remain fraught with ethical dilemmas:

• 68% of paying companies experience repeat attacks within 6 months
• Ransomware-as-a-service models thrive on successful payouts
• Insurance coverage creates perverse incentives

The article concludes with mitigation strategies including network segmentation, immutable backups, and tabletop exercises that simulate no-pay scenarios.