Ransomware recovery: Why businesses still lose data

Picture this: your systems are locked, operations have ground to a halt, and there's a timer counting down with a demand for hundreds of thousands of dollars. The pressure is immense, stakeholders are breathing down your neck and paying seems like the fastest way to achieve ransomware recovery and get back to business. But here's what many Australian businesses discover too late: handing over the ransom doesn't guarantee you'll get your data back.

The Australian Signals Directorate handled 121 ransomware incidents in the last financial year alone, and the numbers tell a troubling story. Even when businesses pay up, only 46% successfully recover their data, and many of those still deal with corrupted files and incomplete restoration. The Office of the Australian Information Commissioner has made it clear: paying criminals doesn't guarantee recovery and certainly doesn't prevent your data from being sold on the dark web anyway.

So what does successful ransomware recovery actually look like, and how can you build systems that work when everything else fails?

When paying the ransom backfires

Most cybercriminals aren't running customer service departments. They're motivated by profit, not your business continuity. The attackers often lack the technical expertise to properly restore complex business environments.

You could be dealing with criminals who may provide faulty decryption keys, demand additional payments for "premium" recovery services, or simply disappear once they've received payment. Some ransomware groups deliberately sabotage their own decryption tools to force multiple payments from the same victim.

The examples are closer to home than you might think, and they show a disturbing pattern of criminal behaviour that continues even after payment.

BlackCat ALPHV victims: 56 Australian companies affected 

At least 56 Australian companies and agencies were targeted by the BlackCat ransomware group, which didn't just encrypt systems, but stole sensitive data first. Many victims paid ransoms yet remained without access to key systems or had their stolen data published on leak sites anyway. Payment didn't guarantee full data recovery or privacy restoration, leaving businesses with both financial losses and ongoing security exposures.

Funksec gang: West Australian businesses exposed 

The Funksec ransomware gang targeted two Australian companies. Operators subsequently shared stolen data from a West Australian cleaning supplier and an ANZ business online, demonstrating that even after ransom payments, attackers released sensitive data anyway. These businesses faced the double blow of paying extortion money and then dealing with public exposure of their data.

Why your current backup strategy might not save you

Most traditional backup strategies were designed to address hardware failures and human errors, rather than intelligent adversaries actively attempting to compromise your recovery capabilities. If your backups are connected to your network, accessible through your standard IT infrastructure, or stored in locations that your compromised admin accounts can reach, they're vulnerable.

Modern ransomware operators spend days or weeks inside networks before launching their attacks. They're specifically looking for your backup systems, studying how your recovery processes work, and positioning themselves to eliminate your alternatives to paying. 35% of backup compromise attempts succeed, meaning more than half of victims lose their primary recovery option.

The reality is that discovering your backups are compromised usually happens at the worst possible moment - when you need them. 

The 3-2-1-1-0 approach: Building true ransomware recovery resilience

The solution isn't just better backups, it's smarter backups that assume your network has already been compromised. The 3-2-1-1-0 backup methodology specifically addresses the tactics that make modern ransomware so destructive:

Three copies across two media types with one offsite: This covers the basics: multiple copies ensure availability, different media types protect against targeted attacks on specific technologies and offsite storage protects against localised incidents. But this alone isn't enough anymore.

One immutable or truly offline copy: This is where ransomware recovery gets serious. Immutable storage uses write-once-read-many technology that prevents any modification or deletion, even by administrators with full network access. When ransomware encrypts everything else, this copy remains untouchable.

Alternatively, truly offline backups (like rotating tape storage or air-gapped systems) provide the same protection through physical isolation. The key is ensuring this copy is completely inaccessible to any network-based attack.

Zero errors through comprehensive testing: The final component requires rigorous verification that your recovery process actually works. This means regular full-system recovery tests, not just file restoration checks. The difference is stark: organisations that properly test their backups have a 46% success rate for recovering operations within a week. Meanwhile, only 25% of those with compromised or untested systems manage recovery in the same timeframe.

Beyond backups: The complete ransomware recovery framework

Reliable data recovery is just one piece of surviving a ransomware attack. Complete business recovery requires addressing operational, legal and strategic considerations that determine whether your organisation emerges or crumbles.

• Operational continuity during recovery: Identify which business functions can operate without your primary IT systems and develop manual processes that maintain essential services. This may involve reverting to paper-based order processing, activating backup communication channels, or temporarily outsourcing critical functions to maintain customer service.
• Legal and regulatory navigation: Australian businesses face specific compliance requirements that can significantly impact recovery decisions. The OAIC's Notifiable Data Breaches scheme requires breach notification within 72 hours and new mandatory ransomware payment reporting legislation means paying ransoms involves additional regulatory scrutiny and documentation requirements.
• Strategic communication management: How you communicate during and after an incident directly impacts customer retention, regulatory relationships and long-term business viability. Develop messaging strategies that acknowledge the incident honestly whilst demonstrating control and competence in your response.

Most importantly, remember that ransomware recovery is ultimately about business resilience. The organisations that survive and thrive after attacks are those that view recovery planning as an investment in competitive advantage, not just a regulatory requirement.

Your ransomware recovery strategy could mean the difference between a temporary setback and a business-ending crisis. At Huon IT, we specialise in building resilient backup and recovery systems that work when everything else fails. Contact us to discover how proper ransomware recovery planning can protect your operations and give you the confidence to focus on growing your business.