What is Ransomware, and Why Should You Care?

Ransomware is one of the most dangerous cyber threats facing businesses today. If you haven’t experienced an attack yet, consider yourself lucky – but also be prepared, because the amount of attacks are only increasing. Ransomware is a type of malware that locks you out of your data and demands a ransom to regain access. The bad news? Even if you pay, there’s no guarantee you’ll get your files back (remember, we aren’t exactly dealing with the most ethical group here). The even worse news? Ransomware attacks are getting more sophisticated every year, thanks in part to AI-powered cybercrime and Ransomware-as-a-Services (RaaS).

 

So, how do ransomware attacks happen, and what can you do to protect yourself and your business?

How Does a Ransomware Attack Work?

1. Infection: How Hackers Get In

Ransomware spreads in different ways, but these are the most common:

  • Phishing Emails: Cybercriminals disguise emails to look like they’re from a trusted source. One wrong click on a link or attachment, and boom – your system is infected.
  • Malicious Websites: Clicking on a compromised website can trigger an automatic download of malware.
  • Weak Passwords & Remote Desktop Protocol (RDP): If your business uses RDP, hackers can break in by guessing passwords or using stolen credentials.
  • Unpatched Software: Attackers exploit known vulnerabilities in outdated systems to gain entry.
  • Malvertising: Online ads embedded with malware can infect users who simply view the page.
  • USB and hardware exploits: Infected USB drives or compromised external devices can be used as an entry point.
  • Social Engineering: Hackers manipulate employees into granting access through deception and impersonation tactics.

2. Encryption: Locking Up Your Data

Once inside, ransomware quickly encrypts your files, making them inaccessible. Some ransomware strains even target backups, making recovery nearly impossible unless you have offline backups in place.

  • File Encryption Methods: Some ransomware encrypts individual files, while others lock entire systems.
  • Double Extortion Tactics: Some hackers not only encrypt your files but also threaten to release sensitive data if the ransom isn’t paid.
  • Ransom Notes & Timers: Many ransomware attacks come with countdown timers, increasing pressure to pay.

3. Ransom Demand: Pay Up or Lose Everything

The hackers then demand a ransom, usually in cryptocurrency, in exchange for a decryption key. But paying is risky – there’s no guarantee they’ll actually give you back your data. Hackers may even install additional malware to maintain access and extort you again later. 

  • Varied Ransom Amounts: Some ransoms are a few thousand dollars, while others exceed millions. 
  • Increased Targeting of SMBs: Small and mid-sized businesses (SMBs) are targeted more often because they lack strong defenses.
  • Multiple Ransom Demands: Some cybercriminals demand additional payments even after the initial ransom is paid.
'You've been hacked. Pay the ransom now' written across the computer screen written from the hacker's POV.

Why Are Ransomware Attacks on the Rise?

1. AI is Supercharging Cybercrime

Cybercriminals are using artificial intelligence (AI) to automate attacks, making them faster and more effective. AI can craft ultra-realistic phishing emails, crack passwords faster, and even find security vulnerabilities before anyone else. 

2. Ransomware-as-a-Service (RaaS)

RaaS works just like any subscription-based software – except it’s for cybercriminals. Hackers with little technical skill can now “rent” ransomware an launch attacks, meaning even more businesses at risk.

3. The Expanding Internet of Things (IoT)

More devices are connected to the internet than ever before. Every smart device – whether it’s a printer, security camera, or conference room tablet – is a potential entry point for hackers.

4. Cryptocurrency Makes Attacks Easier to Monetize

With anonymous digital currencies like Bitcoin, cybercriminals can easily collect ransoms while remaining untraceable. 

5. Remote Work Increases Security Risks

Remote work increases security risks for 2 main reasons:

  1. Employees use personal devices that may lack security protections.
  2. Remote work environments make phishing and social engineering attacks easier to execute.
Man working from home facing encrypted files and being forced to pay a ransom.

Who is a Target?

Anyone and everyone. If you have a device of any kind that connects to the internet, you are at risk of being the next victim of a ransomware attack. Businesses of all sizes need to do what they can to secure their business not only to protect their data but to keep their business running.

How Serious is Ransomware?

One of the immediate issues with ransomware is downtime. With data and applications locked up, the first thing to happen is loss of productivity which is costly for business and the longer your systems are down, the more expensive it gets.

Depending on the severity of the ransomware attack, it can also cost you your reputation. Hackers can steal valuable personal information on you or your clients and customers and this can affect future business. People expect this personal information to be kept private and it’s your responsibility as a business to make sure it is kept safe.

Legal action may also take place if you are not adequately securing personally identifiable information. It varies from business to business, but it’s likely there are some kind of regulation and compliance measures that you are required to follow in your industry such as HIPPAA or GDPR.

I’ve Been Hacked… Now What?

If you’re aware of an active ransomware attack going on in your network here are some steps that should be taken right away:

Isolate the machine

The first thing you should do is disconnect whatever devices are infected from any others on the network. This might mean turning off the network, unplugging the WiFi – whatever you can do to ensure the ransomware doesn’t spread.

Create a backup

Back up all files, whether encrypted or not, that you can in case the hacker removes or deletes them because a decryption solution may become available to you later on.

Prioritize the order for recovery of systems

Prioritizing the recovery of critical systems first ensures the business will be back up and running as soon as possible (even if it’s not fully up to par right away)

Wipe and Restore

Completely clear out the infected devices (once backed up) to remove the malware. You can restore the device once it has been wiped.

Get Help

Not everyone is able to remove the ransomware or recover on their own and that’s what companies like Lighthouse are here for. We can help you to remove malware and get everything up and running like normal.

Consult a Professional

The best thing you can do after ransomware is to consult a cybersecurity professional to find any vulnerabilities hiding in your systems. Hackers commonly retarget victims of a ransomware attack because they know they can gain access.

Looking for a cybersecurity professional? Contact Us

Should I Pay the Ransom?

The short answer is no and there are a number of reasons for this. First, you have to remember that you are dealing with criminals who aren’t here to play fair. If you roll over and pay the ransom right away, there is nothing stopping them from exploiting you even more. Paying the ransom actually sets you up to be a recurring target. If the hackers know they can get the ransom money from you, they’ll likely keep retargeting you.

Even if you do pay the ransom, you might not get the decryption key or any of your files back. Or, if you do get the decryption key, there is a chance it won’t work – again, you’re dealing with criminals here. Hackers also often sell the information they stole from you on the black market. Selling personally identifiable information is a great money maker for hackers. Even if you do get all that information back, someone else might have a copy too.

Finally, you’ll be keeping the hackers in business. By handing over a large sum of money, not only are you now down a significant amount of money but you have also essentially funded them to go on to hack more people.

How to Protect Yourself Against Ransomware

Data Backups

Having backup copies of critical data can limit the loss of data in the case of ransomware attacks or any other case of potential data loss.

Hackers will also target your backups, so you should also ensure that you keep your backups in a secure location where they are cannot be edited or deleted.

Security Software

Using comprehensive security software is also a must. Relying on devices’ default security settings is not enough and hackers find their way through those firewalls all the time. It is critical that you go the extra mile for security on devices and keep all software up to date.

Safe Surfing

As mentioned earlier, human error is one of the most common causes for ransomware attacks. You should be on the lookout for phishing emails and messages and other socially engineered scams. When visiting websites, make sure the URLs contain ‘https:’ and not ‘http:’. Also, avoid using public WiFi – this is a common place for hackers to gain access to devices connected to shared networks. An overall rule of thumb is to not open or click on anything from someone you don’t know. Don’t open emails from a questionable address, click on random links, and don’t click on weird-looking advertisements online.

Cyber Awareness Training

To go off of safe surfing, you should also be educating your employees with this kind of information. Implementing a cyber awareness training program gets all your users up to date on the latest cyber threats. A program also teaches your employees cyber security best practices they can follow everyday to keep themselves and your business safe.

Login Authentication

Because user credentials are often the first target for hackers, it’s important to set-up multi-factor authentication to verify the login of a user. To add to this, you should also use password managers like LastPass to generate strong and unique passwords. Another benefit of these password managers is they keep all of your login credentials in a secure locker.