Photo/Illutration A message on the screen shows that networks are under a ransomware attack. (Provided by Aichi Prefecture)

Police are urging the private and public sectors to stay on the alert for cyberattacks as organizations are reporting spending millions of yen and taking weeks to recover from ransomware hacks.

In 2022, there were 230 reports of ransomware attacks, in which hackers encrypt computer data and demand payment to allow access to them. 

The figure increased by 84 from the previous year, according to the National Police Agency.

Of these, 27 percent were large companies and 53 percent were smaller businesses while health care and academic organizations were among the remaining 20 percent.

A ransom demand was confirmed to have been made in 54 cases, with all but four demanding payment in bitcoin and other cryptocurrencies.

Police recommend that organizations avoid paying a ransom as it doesn’t guarantee the recovery of their computer networks.

While 26 percent of the organizations questioned said their networks were functioning again within a week and 25 percent needed from a week to less than a month, 16 percent spent a month or more but less than two months and 11 percent said it took two months or more.

Ransomware hacks also caused serious financial damage.

While 54 percent of the victims spent less than 10 million yen ($75,000) in responding to and recovering from the attacks, 33 percent spent between 10 million and less than 50 million yen and 13 percent lost 50 million yen or more.

Although 83 percent of targeted entities had made backups of their systems, 81 percent said they didn’t help in recovering data as 72 percent lamented that the backups were also encrypted in the attacks. 

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