The 2025 Midyear Cyber Risk Report: Houston Businesses Face Evolving Ransomware Threats

TL;DR: Cyber insurance claims dropped 53% in early 2025, but ransomware attacks became 17% more severe as criminals target vendors and use advanced social engineering tactics, creating significant risks for Houston businesses.

According to the 2025 Midyear Cyber Risk Report from Resilience, the cybersecurity environment underwent dramatic changes in 2024, with third-party vendor risks becoming the dominant threat facing organizations. While cyber insurance claims decreased significantly in the first half of 2025, the attacks that did succeed proved far more damaging and sophisticated than previous years.

The shift from direct attacks to vendor-focused strategies represents a fundamental change in how cybercriminals operate. Rather than targeting individual companies directly, threat actors are now focusing on managed services providers, software vendors, and other critical third parties that serve multiple organizations simultaneously. This approach allows attackers to potentially compromise dozens or hundreds of companies through a single successful breach.

 Key Trends Reshaping the Threat Environment

The cybersecurity threat environment has undergone significant transformation as attackers adapt their strategies to exploit emerging vulnerabilities. While traditional attack vectors remain active, cybercriminals are increasingly focusing on high-impact targets that provide maximum return on investment.

• Social engineering attacks account for 57% of incurred claims and 60% of financial losses, demonstrating the continued effectiveness of human-targeted manipulation tactics
• AI-enhanced phishing campaigns achieve a 54% success rate compared to just 12% for traditional attempts, with 78% of enterprises experiencing at least one AI-specific breach in 2025
• Transfer fraud represents 26% of claims but only 8% of total losses, indicating cybercriminals are becoming more selective in targeting high-value financial transactions
• Vendor-related incidents account for 22% of incurred losses, with impacts cascading beyond the initially compromised organization to affect multiple client companies
• Business interruption from vendor unavailability emerged as the second highest cause of loss, behind only ransomware attacks    

These evolving attack patterns underscore the need for comprehensive security strategies that address both direct threats and the complex vendor risk environment facing modern businesses.

(Source: Resilience 2025 Midyear Cyber Risk Report)

 The Evolution of Ransomware Tactics

Ransomware operations have transformed from opportunistic attacks to sophisticated criminal enterprises that target specific high-value victims. Modern threat actors employ advanced reconnaissance and multi-stage attack strategies that maximize both financial damage and operational disruption.

• Ransomware accounts for 76% of incurred losses in the first half of 2025, maintaining its position as the most financially damaging cyber threat
• Attack severity increased by 17% compared to the same period in 2024, despite an overall decrease in successful attack frequency
• Average ransomware claims now exceed $1.18 million, with some incidents reaching tens of millions in damages
• Double extortion tactics combine data encryption with threats of public data exposure, while triple extortion adds physical threats against executives in 40% of cases
• Payment rates declined to just 22% as organizations improve backup and recovery capabilities, but successful attacks cause longer business interruptions
• Threat actors commonly demand ransom for data suppression rather than decryption, recognizing that many organizations can restore from backups

The shift toward more targeted, high-impact ransomware operations means that organizations must implement comprehensive defense strategies rather than relying solely on traditional backup solutions.

(Source: Resilience 2025 Midyear Cyber Risk Report)

As Jeremy Gittler, Global Head of Claims at Resilience, notes: “The 53% drop in claims doesn’t tell the whole story. Yes, we’re seeing fewer incidents escalate to incurred losses, but when they do hit, they’re hitting harder. The 17% increase in ransomware claims losses shows that cybercriminals are becoming more selective and more devastating in their approach.”

 How CinchOps Can Help Protect Your Business

As a trusted managed services provider serving the Houston area, CinchOps understands the unique cybersecurity challenges facing local businesses. Our comprehensive approach addresses both direct threats and the complex vendor risk environment that has emerged as a primary attack vector.

• 24/7 network security monitoring to detect and respond to threats before they can cause significant damage
• Multi-layered security controls including advanced endpoint protection, email security filtering, and network segmentation to prevent lateral movement during attacks
• VOIP and SD-WAN solutions with built-in security features that protect against common attack vectors while maintaining business continuity
• Comprehensive backup and disaster recovery services designed specifically to defend against ransomware attacks, ensuring critical data remains protected and recoverable
• Vendor risk management program that evaluates and monitors the security posture of third-party providers, reducing the likelihood of supply chain compromises
• Regular security assessments and vulnerability testing to identify potential weaknesses before attackers can exploit them
• Employee security awareness training programs that address evolving social engineering tactics and AI-enhanced phishing campaigns

By partnering with experienced managed IT support professionals, Houston businesses can build the multilayered security infrastructure necessary to defend against today’s sophisticated threat actors while maintaining the operational flexibility needed for continued growth.

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Discover related topics: The Growing Ransomware Threat: How CinchOps Protects Houston Businesses from Cyber Extortion
For Additional Information on this topic: New insights on the evolving threat landscape, from our 2025 Midyear Cyber Risk Report

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