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Businesses warned not to pay ransomware demands as attacks rise

More than 320 UK organisations reported ransomware attacks last year, prompting a renewed warning for businesses to bolster their cyber security. Report Fraud is urging organisations not to pay ransom demands and is promoting its free Cyber Action Toolkit to help SMEs protect themselves from cyber criminals.

Data from Report Fraud shows that 323 organisations reported ransomware incidents between April 2025 and March 2026, averaging more than 26 attacks each month. More than half of the reports (175) came from small and medium-sized enterprises (SMEs), highlighting the growing threat facing smaller businesses.

Reported financial losses totalled around £270,000, representing a 50% increase on the previous year. However, the true cost is likely to be considerably higher, with many organisations believed to underreport losses because of concerns over regulatory compliance or the implications of admitting they have paid criminal gangs.

The manufacturing sector was the hardest hit, accounting for 42 reported attacks, followed by the scientific and technical sector (21) and the education sector (19).

To coincide with a new awareness campaign launched on 29th June, Report Fraud is encouraging businesses to improve their cyber resilience and report attacks as soon as they occur. The organisation has also reiterated long-standing advice from the National Cyber Security Centre and law enforcement agencies that organisations should not pay ransom demands, as there is no guarantee encrypted data will be recovered or that attackers will remove malicious software from affected systems.

Businesses experiencing a ransomware attack are advised to report it immediately through Report Fraud’s dedicated 24-hour helpline. SMEs are also being encouraged to make use of the free Cyber Action Toolkit (see below) which provides practical guidance on reducing cyber risk and improving organisational resilience.

Sign up for the Cyber Action Toolkit here.

Photo: Michael Geiger

Paul Day
Paul is the editor of Public Sector News.
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