Ransomware is malicious software designed to block access to a computer system or data, often encrypting it until money is paid. Cybercriminals use ransomware to blackmail victims, demanding payment for the decryption key needed to regain access.
Ransomware can affect individuals, businesses, and governments, leading to significant financial losses and disruption of operations. It spreads through phishing emails, malicious websites, or exploiting vulnerabilities.
As ransomware attacks show no sign of slowing down, protecting your organization from ransomware is becoming even more difficult. In Sophos’ 2024 State of Ransomware report, 59% of companies surveyed experienced a ransomware incident.
Armed with knowledge about ransomware risks, employee awareness, and robust technology, organizations can at least minimize the risk. This article will explore how ransomware operates, its various types, notable variants, and how businesses can protect themselves.
How Does Ransomware Work?
Ransomware can infiltrate systems in various ways, including phishing emails, malicious links, or exploiting unpatched vulnerabilities. Some of the most dangerous threats come from ransomware-as-a-service (RaaS), where malicious actors purchase pre-packaged kits that automate the attack process, making it easier for less-skilled attackers to carry out sophisticated campaigns.
Once ransomware infects a system, it encrypts files using a strong cryptographic algorithm, rendering them inaccessible. Attackers then hold the decryption key hostage, offering to unlock the files only in exchange for payment.
After the encryption process, the victim receives a ransom note demanding payment—typically in cryptocurrency. However, paying the ransom does not guarantee the safe return of data.
Infection and Distribution Methods
Phishing and social engineering attacks
Phishing is one of the most common methods of distributing ransomware. Attackers create convincing emails to trick users into clicking malicious links or downloading infected attachments. Often disguised as legitimate communications from trusted sources, these emails use social engineering tactics to exploit human error.
Social engineering is the art of exploiting human psychology to gain access to systems, data or physical spaces. Unlike technical hacking, social engineering often involves tricking people into breaking standard security procedures.
With access to Gen-AI tools like ChatGPT, attackers can now more easily craft ransomware campaigns with better grammar and convincing tone, thereby escaping scrutiny. Once the victim clicks on the link or downloads the attachment, the ransomware is deployed, and the attack begins.
Exploiting software vulnerabilities
One of the easiest ways for attackers to infiltrate systems is to target unpatched or outdated software. Operating systems, applications, or network device vulnerabilities provide a direct entry point for ransomware. These vulnerabilities can be exploited through various techniques, including remote code execution, which allows attackers to install and run malware without needing the user to act.
Malvertising and drive-by downloads
Malvertising involves embedding malicious code in online ads displayed on legitimate websites. When users visit these sites, they are unknowingly exposed to ransomware without clicking on the ad. Drive-by downloads happen when a victim visits a compromised website, and ransomware is automatically downloaded and installed through hidden vulnerabilities in the browser or plugins.
Credential theft
Attackers can access systems through stolen login credentials, often obtained via phishing attacks or dark web marketplaces. Typically, these lists are available online and are generated by previous data breaches. Once attackers have access, they can move laterally through a network, escalate privileges, and deploy ransomware across multiple systems. This method can be hazardous since attackers can remain undetected for extended periods, waiting for the optimal time to launch the ransomware attack.
Types of Ransomware
Crypto Ransomware
This malware targets individual files on the victim’s system, encrypting them using strong cryptographic algorithms. Victims are then demanded to pay a ransom in cryptocurrency for the decryption key. Initially simple in design, modern variants frequently utilize more sophisticated encryption methods and evasion techniques to circumvent traditional antivirus solutions. Some even possess self-propagation mechanisms, spreading across networks to maximize impact.
Locker Ransomware
Instead of encrypting specific files, this variety locks users out of their entire device by hijacking the boot process or displaying an overlay screen that prevents interaction with the device’s UI.
Wiper Ransomware
This type forgoes the pretense of ransom in favor of outright destruction. It either deletes files directly or employs secure deletion techniques to make data unrecoverable. Beyond the immediate data loss, this attack can devastate an organization’s operational continuity and have severe consequences.
Double Extortion
A sophisticated approach where attackers encrypt the data and exfiltrate it. Victims are then coerced with the twin threats of permanent data loss and breach of privacy or regulatory non-compliance due to public data disclosure.
Triple Extortion
This method escalates the situation further by adding targeted attacks on stakeholders such as customers, partners, or employees, threatening to leak their sensitive information unless additional ransoms are paid. Examples include DDoS attacks on public-facing assets or directly contacting stakeholders to inform them of the breach, amplifying damage and operational disruption.
Ransomware as a Service (RaaS)
Like SaaS for business, RaaS is A business model wherein ransomware creators rent out their malicious software to other criminals, often through a subscription or profit-sharing model. This enables a wider range of criminals, including those with minimal technical expertise, to launch ransomware attacks. The RaaS model has significantly lowered the entry barrier for cybercriminals, increasing the frequency and diversity of ransomware attacks. Platforms often provide customer support and updates, mimicking legitimate software services.
Notable Ransomware Variants
- WannaCry: This notorious ransomware exploited a Windows vulnerability and spread quickly across the world, crippling critical sectors like healthcare.
- Petya/NotPetya: Originally posing as ransomware, NotPetya acted more like a wiper, causing significant destruction, particularly in Ukraine.
- Ryuk: Known for targeting large enterprises and governments, Ryuk demands exceptionally high ransoms.
- REvil: Associated with supply chain attacks, REvil often uses double extortion tactics.
- LockBit: A growing threat, LockBit is known for offering quick and automated ransomware attacks.
- DarkSide: Infamous for its role in the Colonial Pipeline attack, DarkSide disrupted fuel supplies across the U.S. East Coast.
Impact of Ransomware on Businesses
- Financial losses: Beyond the ransom itself, ransomware can bring about significant financial setbacks due to operational downtime, data recovery efforts, and potential legal fees.
- Data breach and loss: Ransomware attacks often result in data breaches, exposing sensitive information to the public or criminal misuse.
- Operational downtime: When critical systems are encrypted, businesses experience major operational disruptions, sometimes costing millions per hour.
- Brand damage: When companies mishandle ransomware incidents, customs can quickly lose trust, resulting in long-term brand damage that may be hard to recover.
- Legal and regulatory consequences: Failing to report ransomware attacks or protect data can lead to hefty fines, especially with the recent SEC regulations and for industries governed by GDPR, HIPAA, and PCI.
How to Protect Against Ransomware
The best advice for organizations to protect against ransomware is to adopt a multi-layered approach that combines strong preventive measures, regular employee training, and advanced security tools.
Here are some key strategies companies can use to minimize the risk of being victimized.
Deploy cybersecurity best practices and good hygiene
One of the most straightforward practices in ransomware protection is having regular and secure backups, as backups allow an organization to recover data without paying the ransom. Storing backups offline and isolated from the network is crucial to prevent ransomware from spreading to these files.
Backups should also be tested regularly to ensure they can be restored when needed.
Keeping software and systems up to date is equally important. Attackers frequently exploit vulnerabilities in outdated software to gain entry into networks. Therefore, a robust patch management process ensures that known vulnerabilities are addressed promptly. Be careful of zero-day vulnerabilities—unknown to vendors—as they’re particularly dangerous, and systems should be equipped to defend against them by deploying intrusion detection and prevention tools.
Reduce the risk to the attack surface
Minimizing the attack surface is a critical defense strategy. An attack surface refers to the sum of all the potential points, both digital and physical, where an unauthorized attacker can try to enter or extract data from an environment. Network segmentation (segmenting networks into smaller silos) can help contain ransomware in the event of an attack and limits its spread across the entire network.
Access control policies should also be strictly enforced. Using the principle of least privilege, employees should only have access to the data and systems required to do their jobs. This limits the damage ransomware can do if an individual account is compromised.
Multifactor authentication (MFA) should be implemented wherever possible, adding an extra layer of security beyond passwords. Even if an attacker steals login credentials, MFA can prevent unauthorized access.
Deploying anti-ransomware solutions
Modern security solutions can offer significant protection against ransomware. Endpoint Detection and Response (EDR) tools monitor endpoints for suspicious activities, quickly identifying potential ransomware threats. EDR solutions can detect unusual behavior, such as large-scale file encryption or unauthorized processes running in the background, taking swift action to isolate and neutralize the threat.
Email security solutions are equally crucial, as phishing continues to dominate as the most common ransomware distribution method. Advanced email filters can detect and block malicious attachments or links before they reach the end user. Organizations may also employ sandboxing techniques, where attachments are opened securely to check for malicious behavior before delivery to the user.
The tried and true antivirus and anti-malware tools should be up-to-date and deployed across the organization. These tools may identify known ransomware variants and block them before they can cause damage. It’s important to note here that since ransomware continues to evolve, relying solely on traditional antivirus solutions may not be sufficient.
A Zero-Trust architecture (a concept and not a software solution) is becoming increasingly popular as a defense against ransomware. Zero-trust assumes that no one can be trusted by default, whether inside or outside the network. This approach requires constant verification of users and devices attempting to access resources, thereby reducing the chances of a ransomware attack succeeding.
Fostering a security-first culture
Ultimately, the effectiveness of any ransomware defense strategy hinges on the people within the organization. Humans have been and will likely always be the weakest link in the cybersecurity chain.
Regular training for employees on recognizing phishing emails and other forms of social engineering is critical. Simulated phishing tests can help reinforce this training and reduce the chances of an employee accidentally triggering an attack. Training should be frequent, engaging and empowering.
Cultivating a culture of security awareness across all levels of the organization—from executives to frontline employees—is essential. When employees actively protect company data, the overall risk of ransomware attacks is significantly reduced.
How to Respond to a Ransomware Attack
Responding to a ransomware attack is much easier said than done and requires well-refined strategies that go beyond the scope of this article. But here, in brief, are six steps organizations should check off their list.
1. Isolate the infected systems
Immediately sever the connections of infected devices from the network to halt the ransomware’s spread. This step is crucial for containing the attack and preventing further encryption of files across the network.
2. Identify the type of ransomware
Determine the specific ransomware strain encumbering your systems. This knowledge is vital as it may reveal whether decryption tools are readily available or if recovery efforts necessitate more intricate approaches.
3. Report the attack to authorities
Engage with cybersecurity entities such as the Cybersecurity and Infrastructure Security Agency (CISA), Information Sharing and Analysis Centers (ISACs), or local law enforcement. This grants access to essential resources and expertise in managing and mitigating the breach’s impact.
4. Assess backup viability
Examine the integrity and completeness of available backups. This ensures that recovery can be achieved without yielding to the attackers’ demands, thereby minimizing data loss and operational downtime.
5.Consider decryption options
Investigate the availability of decryption tools provided by cybersecurity researchers. Utilizing these tools circumvents the need to engage with the attackers, reducing risks and possibly expediting recovery.
6. Perform recovery and remediation
Following containment, initiate a thorough remediation process to identify the attack vectors and reinforce system vulnerabilities. Recovery actions should include restoring affected systems from backups and instituting robust, long-lasting security measures to fortify defenses against future attacks.
Should You Pay the Ransom?
Paying the ransom in a ransomware attack is generally not recommended due to several risks.
Firstly, payment doesn’t guarantee that attackers will decrypt data or prevent it from being corrupted. It may also encourage more attacks by funding cybercriminals and demonstrating vulnerability. Decrypting files can be complicated and unsuccessful, and paying the ransom doesn’t assure security from further breaches.
Additionally, paying might have legal and ethical consequences, especially if the funds go to entities in sanctioned countries, violating regulations. Instead of complying with ransom demands, focusing on recovery strategies like restoring from backups, using decryption tools, or consulting with cybersecurity experts is advised. These methods can help mitigate an attack’s impact without supporting a criminal business model or risking legal penalties.
How Balbix Helps with Ransomware
The Balbix platform offers proactive protection against ransomware by identifying and prioritizing vulnerabilities with a risk-based approach. Balbix gives you complete visibility into all your assets, assesses them for risk, including ransomware, and provides detailed actions to mitigate the risk. With real-time monitoring and advanced analytics, businesses can significantly reduce the chances of a successful attack, ensuring peace of mind even in today’s increasingly dangerous cybersecurity landscape.
