What Exactly is Ransomware?
Ransomware is a malicious software (malware) used to extort a ransom to retrieve data or access to a computer system. It functions by encrypting files or locking the screens and asking the user to pay to get the decryption key. Ransomware is spread most often through phishing emails, infected software apps, compromised websites, and vulnerability exploits. It will be installed silently and start to encrypt data before it reveals itself.
The term “ransomware” encompasses a variety of malware variants, including:
1. Encrypting ransomware. Encrypts files so they cannot be opened without a decryption key.
2. Locker ransomware. Locks screens or computers so victims cannot access the system.
3. Doxware. Exfiltrates (steals) sensitive data from the system and threatens to publish it online unless a ransom is paid.
4. RaaS. The Ransomware-as-a-Service model is where malware creators sell access to ransomware variants and infrastructure.
No matter the option, the end goal of ransomware is extorting money from victims. Criminals behind ransomware make millions each year from businesses and individuals desperate to regain access to their systems and data. According to a recent source, you can learn several trends in protecting against cyber threats because their number is growing.
How Did Ransomware Originate and Evolve?
The first recognized ransomware attack occurred in 1989 against AIDS researchers. Victims received infected floppy disks that claimed to contain AIDS education software. Instead, the Trojan horse malware encrypted filenames on the infected computer and demanded $189 to decrypt them.
This proof of concept showed the potential for extortion through malware. Modern ransomware began emerging in the mid-2000s in Eastern Europe and Russia. Early variants posed as law enforcement agencies accusing victims of illegal behavior before locking systems.
The crypto locker variants that encrypt files first emerged around 2013. In the years since, ransomware has rapidly evolved into one of the most prevalent cyber threats globally:
1. Sophisticated phishing lures criminals use social engineering tactics to bypass defenses
2. Anonymous payment systems like Bitcoin enable harder-to-trace ransom payouts
3. Affiliate programs and Ransomware-as-a-Service (RaaS) opened the market to less technical attackers
4. “Big game hunting” sees ransomware gangs deliberately target large and deep-pocketed organizations
5. Damages from ransomware continue rising exponentially each year. The global cost is predicted to exceed $265 billion by 2031 as variants become more advanced and widespread.
How Do Ransomware Attacks Happen?
Most ransomware infections start with attackers gaining an initial foothold on the system. This is often achieved using social engineering lures delivered via email phishing campaigns. These emails impersonate trusted sources and contain infected file attachments or links to malware download sites. If a user opens the attachment or link, the ransomware installs and begins encrypting files.
Other common ransomware infection vectors include:
1. Compromised websites that silently install malware on visitors.
2. Software and media piracy sites spreading infected apps.
3. External devices like USB drives with infected files.
4. Exploiting vulnerabilities in Internet-facing assets to gain access.
5. Purchasing access to corporate networks from initial access brokers.
Once installed, encrypting ransomware variants will stealthily start encoding files with strong encryption algorithms. Data file types like documents, images, databases, and more may be encrypted. Critical system files can also be impacted, making recovery harder.
When encryption is finished, the ransomware reveals itself with ransom payment instructions. Demands often require payment within 24-48 hours, or the ransom price increases. Ransoms typically range from a few hundred to tens of thousands of dollars. However, large enterprises frequently face six and seven-figure ransom demands.
If victims refuse payment, criminals may threaten to delete files, sell data to competitors, or overload servers with traffic. However, even paying the ransom is not guaranteed to recover data. Honesty and ethics are rare among cybercriminals.
What Makes Ransomware So Dangerous?
Ransomware presents an attractive business model to cybercriminals for several reasons:
Low Risk, High Reward. Law enforcement agencies have difficulty prosecuting international cyberattacks linked to the launch. And by paying ransoms in anonymous cryptocurrency, criminals can profit with minimal legal risk.
Scalable and Repeatable Attacks. Sophisticated ransomware operations function like businesses, development, and support teams constantly improving campaigns with marketing. Attacks are also highly scalable, allowing criminals to target thousands of victims.
No Discrimination. Ransomware gangs are equal-opportunity cybercriminals targeting public and private entities across all industries and geographic regions. Any organization with valuable data is at risk.
Severe Business Disruption. Having critical files and systems encrypted brings business operations to a standstill. The average ransomware outage lasts 23 days, with one in ten lasting over two months. The business disruption is often costlier than the ransom itself.
Because ransomware is so widespread and attractive to financially motivated threat actors, it has proven extremely hard to stamp out. It needs to be bolstered between devices, networks and users to reduce the risk it presents.
Inside the Ransomware Economy
Ransomware is now a large-scale criminal enterprise fueled by an entire surrounding economy:
1. Developers. Program ransomware strains and manage backend infrastructure.
2. Affiliates. Infect systems and provide access to ransomware operators.
3. Initial Access Brokers. Sell remote access to systems via security breaches.
4. Ransomware-as-a-Service. Provide ransomware toolkits for novices (“ransomware for rent”).
5. Money Launderers. Clean dirty crypto profits into usable cash.
Affiliates get 10–60% commissions per victim, and ransomware developers earn 40–90% of ransom payments after selling access to them. For the last decade, the explosion of ransomware has come from this revenue-sharing model.
Ransomware has been so profitable that many traditional cybercrime groups have diverted their efforts to it. Inadvertently, the improvements in preventing data theft and bank fraud have caused criminals to focus on targeting ransomware attacks where encryption is used to deny victims access to their data. That being said, ransomware is much more likely to stay the #1 threat for many years to come unless massive law enforcement crackdowns follow.
Protecting Yourself from Ransomware
With ransomware attacks on the rise globally, prioritizing defenses is mandatory for individuals and organizations alike. Preventing infections requires securing potential attack surfaces and training staff to recognize social engineering. Preparedness is also key for faster recovery when incidents do occur.
Individuals and Home Networks
1. Maintain backups offline and regularly test restores.
2. Install updates/patches to close security gaps.
3. Use antivirus/antimalware software on all devices.
4. Avoid clicking links/attachments from unknown senders.
5. Disable RDP connections for remote access.
6. Learn the signs of phishing emails and texts.
Backups are the most effective way for home users to recover personal files post-infection. Storing backups offline prevents encryption. Cloud backups should also have versioning enabled to allow rolling back changes.
Updating devices and software and using security tools can block initial infections. While not flawless, anti-virus and firewalls can catch many basic threats. Most importantly, education on social engineering and risky online behaviors is extremely valuable for personal security.
Businesses and Organizations
1. Enable multifactor authentication everywhere.
2. Educate staff on cyber risks and phishing.
3. Segment internal networks to limit lateral movement.
4. Maintain offline backups with recovery testing.
5. Develop incident response plans for attacks.
6. Monitor networks/systems for IOCs of compromise.
7. Consider cyber insurance to offset costs.
Preventing ransomware in large enterprises requires securing potential attack vectors across networks, devices, and users. Multifactor authentication adds a second layer of identity verification before access. Staff education is vital as mistakes often enable infections.
Network segmentation, endpoint security controls, and intrusion detection systems also help limit infections and lateral movement. Offline backups make recovery feasible without paying ransoms.
Finally, having an incident response plan for containment, remediation, and communication allows for coordinated action during attacks. This can significantly reduce downtime and recovery costs.
Outlook on Solving the Ransomware Crisis
Despite significant growth in recent years, ransomware is not an unstoppable threat. Organizations globally must continue prioritizing resources for security initiatives to turn the tide:
Improve Cyber Hygiene. Many ransomware attacks exploit basic security gaps like missing patches or poor password practices. Reducing these common errors denies criminals easy openings.
Adopt New Safeguards. Innovative new technologies for isolating systems, defeating social engineering, and blocking unauthorized encryption activity reduce attack surfaces.
Align on Information Sharing. Cross-industry and public-private partnerships to share cyber intelligence helps coordinate defenses and law enforcement action.
Refine Cyber Regulations. Government policies should incentivize organizations to invest in cybersecurity while increasing liability for preventable incidents.
Develop Cyber Deterrence. International coalitions to impose real consequences on ransomware gangs and the regimes that harbor them could undermine the criminal impunity currently fueling their rise.
With a concerted global effort across public and private sectors focused on resilience and consequences, the ransomware epidemic can be overcome. But absent bold action to improve defenses worldwide, ransomware may become so entrenched that any data you don’t have locked away in physical cold storage could be just one click away from encryption.
