A.I. Driven Cyberattacks Fuel 149% Rise in Ransomware Incidents in Early 2025. Our Advice for Staying Ahead of the Next Breach.

Cyber attacks have become more frequent and sophisticated than ever. Businesses now face a threat landscape where criminals leverage cutting-edge tools and tactics on every front. Global ransomware incidents surged by 149% in early 2025 compared to the year prior, and no industry is immune. In fact, one report found ransomware and data extortion made up about one-third of all cyber incidents in 2024.

Attackers are getting smarter – using artificial intelligence, exploiting supply chains, and finding new ways to bypass security. For business owners and risk managers, understanding how these threats are evolving is essential.

In this article, we break down the latest cyber trends—and what business leaders can do to stay ahead.

How Cyber Attacks Are Evolving

Cybercrime is escalating, with sophisticated A.I. tools fueling a boom for attackers.

Key attack methods evolving in 2025 include:

• AI-Generated Phishing & Scams: Hackers are now using artificial intelligence to craft highly convincing phishing emails and messages. AI allows them to tailor lures to specific employees with perfect grammar and style, making scams harder to spot. The FBI warns that criminals also use AI voice and video “deepfakes” to impersonate trusted people (like CEOs or partners) in order to deceive victims. These AI-driven scams dramatically increase the success rate of phishing and fraud attempts by exploiting human trust.
• Supply Chain Attacks: Instead of targeting one company directly, attackers compromise a trusted third-party or software supplier to infiltrate many businesses at once. This extends the “blast radius” of a single breach. Recent years saw hacks like the MOVEit file-transfer exploit and the Kaseya incident, where ransomware in a managed service provider spread to 1,500+ client organizations. Between 2021 and 2023, supply chain cyber attacks jumped 431%, and they’re projected to keep rising into 2025. The complex web of vendors and software in modern business offers attackers many points of entry.
• MFA Fatigue and Human Factor Exploits: Hackers are also finding creative ways to get around multi-factor authentication. In “MFA fatigue” attacks, they bombard an employee’s authenticator app with repeated login attempts until the person, out of confusion or frustration, finally approves one. This tactic was used in high-profile breaches (e.g. the 2022 Uber hack) and contributed to a 40% rise in attacks exploiting MFA weaknesses in 2024. It’s a reminder that attackers often bypass technology by preying on human psychology. Social engineering via phone calls or texts (vishing and smishing) also remains a go-to strategy.
• Deepfake Impersonation Scams:  Fraudsters are increasingly leveraging deepfake technology – AI-generated audio or video to impersonate executives and trick employees. In one case, criminals cloned a CEO’s voice to urgently request a fraudulent wire transfer, successfully stealing $243,000. More recently, the CEO of a major advertising firm was targeted by a deepfake scheme that used a voice clone and fake video call to pose as him – thankfully foiled by vigilant staff. As this technology becomes more accessible, businesses must be ready for scams that go beyond just fake emails to fake voices and faces.
• Zero-Day Exploits and Unpatched Flaws: Cybercriminals continue to take advantage of software vulnerabilities – both known and unknown. A “zero-day” exploit is a previously unknown security hole that attackers can use before a fix is available. In 2024, dozens of zero-day vulnerabilities were observed being actively exploited in the wild. While nation-state hackers often discover these, criminal gangs are now buying or trading zero-days on the black market to use in ransomware and data theft. Even more common is hackers pouncing on unpatched known flaws – many attacks still succeed simply because organizations lag in installing security updates. In short, if there’s a weakness, attackers will try to find it.

Behind these tactics, there’s also a shift in the cybercrime “business model.” Ransomware gangs now operate like startups, offering Ransomware-as-a-Service (RaaS) to affiliates. This means even less-skilled criminals can rent sophisticated malware and infrastructure, dramatically expanding the pool of attackers. Many gangs also use double or triple extortion – stealing sensitive data and threatening leaks or DDoS attacks in addition to encryption – to pressure victims into paying. Overall, cyber criminals in 2025 behave more like savvy entrepreneurs: automating attacks with AI, collaborating on the dark web, and innovating to maximize their illegal profits.

The Business Impact: Real Losses and Disruption

Cyber attacks can translate directly into major financial losses and business disruption for all-sized companies. Real-world examples across sectors abound. For instance, several professional services firms have suffered over $1 million in losses from a single email compromise incident, where hackers spoofed invoices and misrouted payments. In the mining industry, a ransomware attack was able to halt operations, encrypting critical data and grinding productivity to a standstill. There have been cases of finance departments being tricked by social engineering into sending large payments to fake suppliers – money that may never be recovered. These scenarios are not hypothetical; they are occurring in businesses outside the Fortune 500, and the costs are very real.

The financial fallout from modern cyber attacks has climbed to record highs. One analysis found victims spent over $813 million on ransomware payments in 2024 alone. The average ransom payment reported by companies skyrocketed from around $400,000 in 2023 to $2 million in 2024 – a 5× increase in just one year. Even when businesses have cyber insurance, the claims are getting larger: the average ransomware-related insurance claim was about $353,000 in 2024, up 68% from the prior year. And these figures don’t even include the cost of downtime, lost sales, and recovery. Companies hit by ransomware often face days or weeks of halted operations, which can easily outstrip the ransom itself in terms of financial damage. For example, an attack on a software provider in mid-2024 forced it to shut down most systems to contain the threat, causing significant disruption for 15,000 downstream customers who couldn’t fully operate their businesses during the outage.

Beyond the immediate financial hit, a cyber incident can deal a lasting blow to a company’s reputation and customer trust. Customers and partners may lose confidence overnight. In fact, a recent survey found that 75% of consumers would stop doing business with a brand after a major cyber breach, and two-thirds say they wouldn’t trust that company with their data anymore. Simply put, an organization’s hard-won reputation can be shattered by a single incident if handled poorly. There may also be regulatory penalties, legal liability, and notification costs if customer or employee data is compromised.

All told, cyber attacks today pose not just an IT problem but a business continuity threat – hitting the bottom line, operational capability, and relationships with customers.

Looking Ahead: Cyber Risk Through 2026–2027

What will cyber risk look like in the next few years?

Unfortunately, many experts predict the situation could intensify further before it improves. Attackers are continually adapting, so trends we’re seeing now are likely to continue into 2026 and 2027 with even greater sophistication. Notably, the role of AI in cybercrime is expected to grow. Threat analysts project a rise in AI-supported attacks targeting supply chains and businesses globally. In other words, the same artificial intelligence that can help your business can also empower criminals to launch more targeted, automated, and convincing attacks at scale.

We may see malware that can dynamically evade detection or phishing campaigns run by AI bots engaging victims in live chat. Deepfake scams might become more commonplace as the technology improves and circulates in the criminal underworld.

Ransomware will likely remain a lucrative enterprise for cyber gangs. As defenses improve, criminals may shift tactics – for example, focusing more on exfiltrating data and extorting victims rather than purely encrypting files. They may also target cloud services or managed service providers more, since many mid-sized companies rely on these and a single breach can cascade to multiple victims. Meanwhile, the sheer number of discovered software vulnerabilities isn’t slowing down – over 30,000 new vulnerabilities were disclosed in the last year – so there will always be fresh openings for attackers who move quickly.

The period of 2025–2027 could also bring more attacks on critical infrastructure and smaller supply chain partners, as geopolitical tensions and criminal opportunism intersect.

On a positive note, awareness of cyber risk among businesses and governments is higher than ever, which means defenders are also stepping up. We can expect continued investment in security solutions (including AI-powered defenses), more stringent regulations around cybersecurity practices, and broader adoption of frameworks like Zero Trust. Cybersecurity is becoming a board-level issue even at mid-sized firms, and insurers, regulators, and industry groups are pushing for better standards. The hope is that by 2026–2027, companies will be better prepared even as threats evolve. Still, the consensus is clear: cyber criminals will keep getting smarter, so businesses must plan for a cyber threat environment that is constantly shifting. In short, the arms race between attackers and defenders will continue into the foreseeable future.

Preparing and Protecting Your Business

Given this challenging landscape, what can a mid-size business do?

The answer is to adopt a layered, proactive approach to cybersecurity and risk management. No single tool or program will stop every attack, especially when human error is involved. Instead, businesses should focus on building resilience through multiple layers of defense and good cyber hygiene practices.

Key steps include:

• Harden Your Defenses: Ensure you have up-to-date security technologies in place – such as firewalls, up-to-date anti-malware, and intrusion detection systems – but also keep all software patched with the latest updates. Many attacks exploit known vulnerabilities that could have been fixed, so a rigorous patch management process is vital. Use strong access controls and multi-factor authentication for all critical systems (and consider modern MFA that uses prompts or number matching to mitigate simple push fatigue exploits).
• Educate and Train Employees: Since social engineering is a top entry point, invest in regular security awareness training for your staff. Teach them how to spot phishing emails, suspicious texts, or unusual requests. Encourage a culture of double-checking anything that seems off – for example, verifying urgent payment requests via a second channel. Include training about new threats like deepfakes (e.g. “If the CEO messages you with an odd request, verify via phone”). Employees are your first line of defense, and informed employees are far less likely to fall for even sophisticated scams.
• Strengthen Vendor and Supply Chain Security: Evaluate the cybersecurity of your key vendors, suppliers, and software providers. Third-party risk management is now essential, as attackers often target weaker links. Wherever possible, work only with vendors who follow strong security practices and require them to adhere to standards contractually. Limit the access that suppliers have into your systems (implement a “Zero Trust” approach – never fully trust an external connection). Regularly back up data offline so that even if a vendor system is breached or a software update is compromised, your business can recover quickly.
• Plan and Drill Your Response: Just as you would prepare for a natural disaster, have a Cyber Incident Response Plan in place and practice it. Know who you will call (internal leads, IT partners, legal counsel, etc.) and what steps to take if you suspect a breach or ransomware attack. Conduct tabletop exercises or drills to simulate an attack scenario – this helps reveal gaps in your response. An effective, swift response can significantly reduce the damage of an incident and get you back to business sooner.
• Layer Your Protections: Consider advanced measures appropriate to your risk level – for example, deploying endpoint detection and response (EDR) tools that can catch suspicious behavior, or using threat intelligence services to get early warnings of potential attacks. Network segmentation and zero-trust architecture can limit how far an attacker can move if they do get in. No single defense is foolproof, but multiple overlapping controls create a robust shield that makes you a harder target.

Finally, don’t overlook cyber insurance as part of your risk strategy.

A cyber insurance policy can serve as a financial backstop if the worst happens – helping cover costs like forensic investigation, data recovery, customer notifications, legal fees, and even ransom payments (subject to policy terms). Importantly, many cyber insurers also provide access to incident response experts and negotiators as part of the coverage, which can be invaluable during a crisis.

That said, insurance is not a substitute for strong security. In fact, insurers now scrutinize applicants’ cybersecurity practices closely. Think of insurance as one layer in your defense-in-depth strategy: it transfers some residual risk and helps your business recover, but it works best in tandem with the preventative measures outlined above. Notably, many smaller firms still lack this protection – only about 17% of small businesses had cyber insurance as of 2023 – often buying it only after experiencing an attack. Don’t wait for an incident to stress-test your planning.

Staying Vigilant

Cyber criminals are getting smarter, but so can we. For business leaders, the goal is not to panic, but to stay informed, prepared, and adaptable. Regularly update your risk assessments and stay up to date on emerging threats. Foster an internal culture where security is everyone’s responsibility – from the boardroom to the break room. By understanding how attacks are evolving and investing in layered defenses and response capabilities, companies can greatly mitigate the risks. While you may not have the resources of a Fortune 500, you can still make your organization a less attractive target and limit damage if an incident occurs.

In summary, the cyber threats of 2025 and beyond demand vigilance and agility. Cyber criminals may be smarter than before, but with the right strategies, your business can stay one step ahead. By planning for the worst and strengthening your cyber resilience now, you’ll be in a far better position to protect your company’s finances, operations, and reputation in the face of whatever new twists cyber adversaries come up with next. It’s an ongoing challenge – but one that can be met with clarity, preparation, and a commitment to staying secure in our ever-connected world.

Sources:

Kerner, S.M. (2025). Ransomware trends, statistics and facts in 2025. TechTarget.

FBI San Francisco Division (2024). Warning on cyber criminals using AI. FBI News Release.

Keepnet Labs (2024). MFA Fatigue Attack – 40% increase in MFA-exploiting attacks. Blog.

Snape, G. (2025). Supply chain cyber attacks surge 400% (Cowbell report). Insurance Business.

Guardian News (2024). Deepfake scam targets WPP CEO. The Guardian.

Vercara/Digicert (2023). Consumer trust impact after cyber incidents. Press Release.

CISA & Verizon (2024). Data Breach Investigations Report. (Statistical reference on ransomware prevalence).

Coalition Inc. (2024). Cyber Claims Report – Mid-year Update. (Average claim cost).

NCC Group (2025). Cyber trends and predictions 2025. (Future outlook insights).

StrongDM (2025). Small Business Cybersecurity Stats. (Cyber insurance uptake).