2025 Cybersecurity Year in Review

The Year Organizations Stopped Being Victims and Started Fighting Back

2025 wasn’t just another year of rising cyber threats. It was the year the tide turned.

For the first time in the modern ransomware era, organizations stopped being easy targets. They invested in the fundamentals. They practiced their response plans. They tested their backups. And when attacks came, they recovered without funding criminals.

Here’s what actually happened in 2025—backed by real data from the industry’s most credible sources.

2025 By The Numbers

77%
Ransomware Victims Refused to Pay
23%
Payment Rate (Record Low)
↓35%
Total Ransom Payments (YoY)
$4.44M
Average Data Breach Cost

The Ransomware Reversal: 77% Said No

In Q3 2025, only 23% of ransomware victims paid the ransom—the lowest rate ever recorded. That means more than three out of four organizations recovered without funding the criminals who attacked them.

Ransomware Payment Rate Decline (2019-2025)

2019
2020
2021
2022
2023
2024
2025

85%
70%
55%
41%
37%
28%
23%

Source: Coveware Quarterly Ransomware Reports (2019-2025)

This dramatic decline represents a fundamental shift in how organizations approach ransomware. Instead of hoping they won’t be targeted, they’re preparing to survive when they are.

What Changed: Organizations finally invested in tested backups, 24/7 monitoring, and incident response plans they’d actually practiced. When ransomware hit, they recovered without paying.

Could Your Organization Survive Without Paying?

77% of organizations in 2025 recovered without funding criminals. Find out if you’re prepared to join them.


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The Money Story: Payments Plummeted

Total ransomware payments dropped 35% year-over-year, falling from $1.1 billion in 2023 to $813 million in 2024. This happened despite attack volumes hitting all-time highs.

Total Global Ransomware Payments

2023
$1.1B
2024
$813M
↓35%
Year-over-Year Decline

Source: Chainalysis 2025 Crypto Crime Report

The criminals’ business model is breaking. More attacks, less money. Organizations are proving that preparation beats ransom payments.

How Attackers Got In: The Top Vectors

Understanding how breaches happen is the first step to preventing them. Here’s what the data revealed about 2025 attack patterns:

Primary Attack Vectors in 2025

Phishing
30%
30% of all breaches
Supply Chain/Third-Party
15%
2x from 2024
Stolen/Compromised Credentials
10%
10%
Exploited Vulnerabilities
8%
8%

Critical Insight: The human element caused 68% of all data breaches in 2025. Training your people isn’t optional—it’s essential.

Source: Verizon 2025 Data Breach Investigations Report (DBIR), IBM 2025 Cost of a Data Breach Report

Industries Under Fire

Ransomware didn’t attack all industries equally. Some sectors bore the brunt of 2025’s onslaught:

Most Targeted Industries in 2025

Manufacturing
+61% attacks (YoY)
29% of all ransomware attacks
Finance & Insurance
$5.9M avg breach cost
Second-most expensive sector
Healthcare
$9.77M avg breach cost
Third-most targeted (costs down 10.6%)

Why Manufacturing?

Downtime equals lost revenue. Stopping a factory line even for a day can cost millions, so attackers bet that manufacturers will pay quickly. The convergence of IT and OT (operational technology) networks created new vulnerabilities attackers eagerly exploited.

Source: Check Point Research Q2 2024, IBM Cost of a Data Breach 2025, HIPAA Journal

The AI Revolution: Weapon and Shield

2025 marked the year AI became central to both attacks and defenses. The same technology empowering security teams also armed threat actors with unprecedented capabilities.

⚠️ AI-Powered Threats

  • Autonomous attacks: AI agents planning and executing breaches without human intervention
  • Deepfake attacks: 21-28% of security leaders feel least prepared for these
  • AI-vishing: Voice deepfakes targeting executives
  • Polymorphic malware: AI-guided code that reconfigures itself to evade detection

✓ AI-Powered Defenses

  • 34% cost reduction: Organizations with security AI saved $1.9M per breach on average
  • Faster detection: AI-powered monitoring catches threats in hours instead of weeks
  • Automated response: Machine-speed containment and remediation
  • Behavioral analysis: AI identifies anomalies humans would miss
$1.9M
Average Savings with Security AI

Source: IBM Cost of a Data Breach Report 2025

The organizations that thrived in 2025 were those that deployed AI defensively while preparing for AI-powered attacks.

Notable 2025 Incidents

These high-profile breaches shaped the year’s narrative and taught critical lessons:

PowerSchool Breach

Target: North American school software provider

Impact: Student and teacher data compromised

Lesson: Even education technology isn’t immune—attackers target data, not industries

Jaguar Land Rover

Target: UK automotive manufacturer

Impact: Production halted, dealers couldn’t register vehicles

Lesson: Supply chain disruptions affect entire industries, not just one company

Volvo Group/Miljödata

Target: Third-party HR software provider

Impact: 870,000 employee records leaked across vendor’s client base

Lesson: Your security is only as strong as your weakest vendor

St. Paul, Minnesota

Target: City government systems

Impact: Critical city services disrupted for weeks

Lesson: Government and public sector remain vulnerable, affecting citizen services

Who Won in 2025?

The organizations that refused to pay ransoms weren’t the biggest or best-funded. They were the most prepared. Here’s what they had in common:

The Resilience Checklist

✓ Tested, Offsite Backups

Not just “we have backups”—backups they’d actually restored from in the last 30 days

✓ 24/7 Security Monitoring

Threats don’t wait for business hours—neither should your defenses

✓ Practiced Incident Response

Plans that had been tested, not just documented and filed away

✓ Trained Employees

People who could recognize and report phishing, not just click through warnings

✓ Network Segmentation

Attackers couldn’t move laterally from one compromised system to everything

✓ Zero Trust Architecture

Organizations saved $1.76M per breach with zero-trust approaches

The organizations that survived weren’t lucky. They were ready.

What 2025 Means for 2026

The lessons of 2025 are clear. Organizations that invested in resilience won. Organizations that hoped they wouldn’t be targeted lost.

Three Questions for 2026

1. Could your business survive a week completely offline?

2. Would you know if someone was in your systems right now?

3. Are your backups tested, or just theoretical?

If you can’t answer these questions confidently, 2026 is the year to change that.

The shift from 85% payment rates in 2019 to 23% in 2025 proves that organizations can win against ransomware. But victory requires preparation, not hope.

Sources & References

Primary Data Sources:

  • Coveware Quarterly Ransomware Reports (2019-2025) – Payment rates, ransom amounts, and victim statistics
  • IBM Cost of a Data Breach Report 2025 – Breach costs, AI impact, and industry-specific data
  • Verizon 2025 Data Breach Investigations Report (DBIR) – Attack vectors and breach patterns
  • Chainalysis 2025 Crypto Crime Report – Total ransomware payment volumes and cryptocurrency tracking
  • Sophos State of Ransomware 2025 – Recovery statistics and ransomware trends
  • Cybersecurity Ventures 2025 Almanac – Global cybercrime cost projections
  • Check Point Research Q2 2024 – Industry-specific attack trends
  • HIPAA Journal – Healthcare breach costs and trends

Specific Statistics:

  • 23% payment rate – Coveware Q3 2025
  • 77% refusal rate – Coveware Q3 2025
  • $813M total payments – Chainalysis 2025
  • 35% payment decrease – Chainalysis year-over-year analysis
  • 63% refused to pay – IBM 2025 Data Breach Report
  • 30% phishing-caused breaches – IBM 2025
  • 68% human element in breaches – Verizon 2025 DBIR
  • $4.44M average breach cost – IBM 2025
  • 34% AI cost savings ($1.9M) – IBM 2025
  • 61% manufacturing attack increase – Check Point Research, Ontinue
  • $9.77M healthcare breach cost – HIPAA Journal/IBM 2025
  • $10.5T projected global cybercrime cost – Cybersecurity Ventures

Major Incidents Referenced:

  • PowerSchool breach – Infosecurity Magazine, NBC 26
  • Jaguar Land Rover production halt – BBC, IT Pro, CNA
  • Volvo Group/Miljödata third-party attack – PKWARE Data Breach Report 2025
  • St. Paul, Minnesota city systems – Official city statement

Ready to Join the 77%?

Start 2026 Prepared

centrexIT has protected businesses since 2002. The organizations that thrived in 2025 weren’t the biggest—they were the most prepared. Let’s find out where you stand.


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