One-third of MSPs concede to maintaining a ransomware funds reserves
In a groundbreaking development, The Channel Recruiter and Nebula have unveiled a new global talent resourcing solution, aiming to bolster the cybersecurity industry's defences against the growing threat landscape. This announcement comes as managed service providers (MSPs) grapple with the complexities of ransomware preparedness, cyber insurance, and the looming threat of AI-based attacks.
According to the Cybersmart annual MSP Survey report, conducted in collaboration with OnePoll, a significant portion—45%—of MSPs have set aside dedicated funds specifically for ransomware payments, reflecting a pragmatic, albeit controversial, approach to the threat. This practice persists despite increasing regulatory and insurer pressure to avoid paying ransoms, which is widely seen as fueling criminal enterprises.
While nearly half are preparing financially for ransomware, 36% of MSPs opt for cyber insurance as their primary defence, and 11% have neither a dedicated ransomware fund nor insurance, leaving them fully exposed to attacks. This divergence in approaches highlights the need for more comprehensive strategies to protect against ransomware.
Industry skepticism toward outright bans on ransomware payments, such as the UK’s recent prohibition for public sector organizations, is palpable. Critics argue that such bans are “unrealistic” and would be a “disaster in practice,” since organizations often pay ransoms as a last resort when critical systems are compromised. MSPs advocate instead for mandatory reporting and stronger security mandates rather than payment prohibitions.
Cyber insurance adoption remains moderate, with only 36% of MSPs currently covered. This suggests that many providers still rely on alternative risk management strategies, or remain underinsured. There is a growing awareness among MSPs of the financial risks posed by cyberattacks, but insurance is not yet universal, and reliance on ad hoc solutions persists.
MSPs now rank artificial intelligence as their leading cybersecurity concern, surpassing even ransomware and traditional malware threats. This shift reflects the rapid evolution of attack methods, with AI enabling more sophisticated, automated, and scalable threats. Proactive, advanced security strategies, such as partnering with specialized cybersecurity firms, enhancing integrations, and continuously updating defences, are emphasized as crucial to counter AI-driven threats.
The industry is moving toward recognizing that reliance on reactive measures like ransom payments is insufficient in the face of evolving risks. Jamie Akhtar, Cybersmart's CEO and co-founder, emphasized the importance of MSPs being cyber secure and cyber confident to tackle the evolving threat landscape.
The lack of easy-to-use tools for MSPs to counter AI-based attacks leaves SME clients vulnerable. As AI becomes the new frontier, MSPs must adapt and evolve their strategies to meet these challenges, ensuring their clients remain protected in an increasingly complex digital world. The study was based on responses from 900 MSPs located across the UK, Europe, Australia, and New Zealand.
Infrastructure investment and advanced technology are essential components in the industry's quest to combat the heightened cybersecurity risks, especially in light of the growing concern over AI-driven threats. To address the vulnerabilities of small and medium-sized enterprises (SMEs), MSPs need to augment their cybersecurity strategies, focusing on proactive solutions such as collaborating with specialized firms, enhancing integrations, and continuously updating defences in the data-and-cloud-computing environment.
