Ransom demands have moved beyond physical kidnappings. Bad actors can profit immensely by simply denying you access to your resources, including IT infrastructure, cloud environments, and servers.
When executed effectively, these attacks drain finances and leave a lasting stain on your reputation, making recovery an uphill battle. Globally, the average ransom price in 2024 has risen to $2.73 million, up from $1 million. For many businesses, this financial blow could be devastating.
Given the severity of ransomware attacks, prevention isn’t just important—it’s essential. Let’s delve into how you can keep your business secure.
Once activated, the Trojan hid directories and encrypted file names on the victim's computer, rendering them inaccessible. To regain access, victims were instructed to pay a $189 ransom.
While Popp’s 1989 ransomware attack was relatively easy to manage and prosecute, the rise of the internet has made things more complex. Cybercriminals quickly realized they could monetize ransomware on a much broader scale.
In 2006, cybercriminals began implementing effective asymmetric RSA encryption. The Archiveus Trojan encrypted all data in the ‘My Documents’ directory, requiring users to purchase items from an online pharmacy to receive the 30-digit password needed to access the folder.
Another notable attack from 2006 was the GPcode Trojan, which was spread via email attachments masquerading as job applications. By 2008, the GPcode’s encryption was upgraded from a 660-bit RSA key to a 1024-bit key, making it even more challenging to crack.
The ransomware landscape changed dramatically in the 2010s with the rise of cryptocurrency. Blockchain technology provided cybercriminals with an untraceable means to collect ransom, transforming ransomware into a highly lucrative industry. In 2011, around 60,000 ransomware cases were detected, which doubled to 200,000 in 2012. Astonishingly, ransomware attacks more than quadrupled between 2014 and 2015.
This pivotal shift gave rise to eCrime, encompassing a broad spectrum of cybercriminal activities such as malware, trojan horses, cryptojacking, and crimeware. The new financial anonymity provided by cryptocurrencies lowered the barrier to entry for ransomware like CryptoLocker, which emerged in 2013 and targeted both individual users and businesses.
In 2017, ransomware gained global attention with the WannaCry attack, which targeted computers running the Windows operating system by encrypting data and demanding ransom for decryption. This attack notably affected organizations that had not applied patches released by Microsoft before the attack.
Looking forward, eCrime is expected to evolve rapidly, aiming to exert maximum pressure on organizations to pay substantial ransoms. The financial impact of these attacks has skyrocketed, with the average ransom demand reaching $2.73 million in 2024, up from $1 million.
A ransomware attack begins with hackers gaining access to critical data, encrypting it, and then requesting a ransom for its release. However, the specific steps involved in each attack can vary. Here’s a more detailed breakdown:
Cybercriminals use various methods to access sensitive company information, with phishing being the most common. Attackers send harmful emails targeting organization workers, asking them to click a link, download a file, or open an attachment. If an employee falls for the bait, ransomware infects their computer, granting the perpetrator access to the company's systems.
Another common method is drive-by downloading. In this scenario, a user unknowingly visits an infected website, which automatically downloads and installs ransomware without their knowledge.
Social engineering is also frequently used. Attackers access a user's Remote Desktop Protocol (RDP) using stolen credentials. Once they have RDP access, they can easily execute the ransomware attack.
Once the attacker gains access to your data, they initiate the encryption phase, effectively blocking you from retrieving it. During this process, the ransomware encodes your data using an attacker-controlled encryptor. While many ransomware variants focus on encrypting files that do not impact system stability, some take it further by deleting backup copies, leaving businesses with even fewer recovery options.
Attackers often target files that are critical to your operations. For example, in a law firm, ransomware may focus on high-profile client files or sensitive cases with significant public interest. This calculated approach is designed to disrupt your business and amplify the pressure to pay the ransom.
Once attackers gain access to sensitive information, they dictate terms for its return. While ransomware variants differ in operation, a common tactic involves changing the system’s background or embedding text files alongside encrypted data to deliver ransom notes.
The rise of cryptocurrencies has further emboldened attackers, enabling them to demand payments with little to no scrutiny. This anonymity complicates tracking and makes ransomware an increasingly lucrative crime.
Once the ransom is paid, the attacker may provide the decryption key or steps to help you decode the data. However, in many cases, they do not provide the decryption key; even when they do, it may not work.
While the three core stages exist in most ransomware variants, different ransomware come with varying implementations and additional steps. For example, some ransomware, like Maze, exfiltrates data before encryption, while others, like Ryuk, specifically target large organizations for higher ransom amounts.
Ransomware attacks have evolved significantly over the past few years. The most common ones include:
Ransomware as a Service (RaaS) is a malware model where attackers provide affiliates with access to their ransomware. The affiliates deploy the ransomware, and the ransom is then split between the attackers and collaborators.
Data-stealing ransomware is a variant that focuses on data theft rather than encryption. Some attackers have shifted to this method because data encryption is time-consuming and more easily detectable. Additionally, organizations have developed strategies to detect and terminate infections before they cause significant harm.
Leakware, or exfiltration malware, is designed to steal sensitive data from a targeted system. It infiltrates a network, gathers confidential information such as financial records or personal details, and transmits it to external servers controlled by attackers. With access to important information, the attackers will threaten to expose it unless a ransom is paid.
Crypto ransomware is a specific type of ransomware that encrypts your files and demands payment in exchange for the decryption key. The name reflects the growing reliance on cryptocurrency for ransom payments—a preferred method for cybercriminals due to its decentralized nature.
The anonymity provided by cryptocurrency transactions makes it challenging for authorities to track attackers, further complicating law enforcement’s ability to intervene.
Locker ransomware, or blocker ransomware, locks you out of your devices, demanding a ransom for access. Instead of encrypting files, it blocks access to the system, often by displaying a full-screen window or changing credentials.
Double-extortion ransomware combines data encryption with the theft of sensitive information. Attackers developed this technique in response to organizations’ reluctance to pay ransoms. Attackers will steal and encrypt your data and then threaten to expose it unless their demands are met.
Triple extortion ransomware introduces a third technique in addition to double extortion. This approach includes demanding ransom not only from the victim organization but also from its customers or partners. Additionally, attackers may carry out a distributed denial-of-service (DDoS) attack against the company, further pressuring them to pay the ransom.
Scareware is malware designed to trick you into buying unnecessary services. It often appears as pop-up warnings, fake antivirus alerts, or notifications claiming that your computer is infected with multiple viruses. The goal is to create a sense of urgency, prompting users to pay for a supposed fix that either does nothing or compromises their security.
Wiper is a form of malware close to, but slightly distinct from, ransomware. While their encryption techniques are similar, the primary goal of wipers is to deny you access to encrypted files permanently. In most cases, they achieve this by deleting the copy of the encryption key, making data recovery impossible.
Finding out your company has been compromised is every CTO’s worst nightmare. In such moments, the immediate priority is to manage the problem internally, which starts with managing your emotions and staying calm.
While shutting everything down and paying the ransom might seem like the quickest solution, both actions could backfire. Paying the ransom doesn’t guarantee you’ll regain access to your data—it could even embolden attackers to target your company again. Instead, follow a structured approach to recovery that minimizes long-term damage and reduces the risk of future attacks.
Here’s a step-by-step guide to handling a ransomware incident.
Upon detecting a ransomware attack, the first thing to do should be to stop the spread and prevent attackers from controlling your network connectivity. You can create 'islands' within your systems to slow the attack and prevent internal network traffic.
We recommend you block networks at the following locations:
Most applications used by cybercriminals are stored in the computer’s live memory. This information can be crucial in determining the most effective countermeasures against an attack. Switching off or rebooting your servers clears the live memory, erasing valuable data. Therefore, keep your servers on, but ensure they are isolated as described in Step 1.
Remember, attackers have invested a lot and will go to any extent to get paid. In some cases, they target your backup solutions and delete them. Offline backups will safeguard your data and enable recovery even if your primary backups are compromised.
Federal and state laws around breach disclosure stipulate what actions you must take if your organization is under attack. For instance, under the California Consumer Privacy Act (CCPA), businesses must notify California residents whenever their personal information is exposed. Consulting your legal counsel will help you determine whether or not your situation requires public disclosure.
While you might want to manage the situation yourself, attempting to clean it up without expert help can worsen the damage. A single successful attack often serves as an entry point for future costly breaches, as attackers may share details of compromised systems.
Once you have successfully removed the ransomware from your systems, it’s time to start the recovery process.
Protecting your organization from ransomware requires targeted preventative measures that combine best practices and solutions.
Good preparation can drastically reduce the cost and impact of a ransomware attack. Considering the following best practices can significantly reduce the risk:
A robust anti-ransomware solution, like Microsoft Defender for Endpoint or Azure Backup, is critical for identifying and mitigating threats before they cause significant damage. These tools detect ransomware's unique system activity patterns and neutralize the threat. When selecting an anti-ransomware solution, consider the following key features:
Ransomware attacks can be devastating for any organization, causing significant financial and reputational harm. The severity of these attacks underscores the importance of prevention.
At CrucialLogics, we secure your business using native Microsoft technologies you already own. Instead of relying on third-party tools to patch security gaps, our experts identify weaknesses and strengthen your infrastructure using your existing tools.
Speak with us today for a cybersecurity risk assessment, remediation, or recovery plan.