What is Ransomware? Everything you need to know(2024).

Did you know ransomware attacks are expected to cost the world over $30 billion in 2024? And it is not just because of locked systems and encrypted files. Cybercriminals have raised the stakes with double extortion tactics—holding data hostage and threatening to release it publicly if their demands are not met. Imagine sensitive personal or business information exposed for everyone to see, with the pressure mounting.

As ransomware becomes even more aggressive and costly, understanding how these attacks work and how to protect yourself is more important than ever. In this post, we will discuss why ransomware is so dangerous and the essential steps you can take to stay safe.

What is Ransomware?

Ransomware is a type of malicious software that either locks users out of their systems or encrypts important files, making them inaccessible. Attackers then demand payment, often in cryptocurrency, to unlock the files or restore access. However, even paying the ransom does not always mean you will get access back, as attackers may withhold the decryption key or continue to exploit the victim.

A recent instance of a ransomware attack where the victim paid the ransom but did not receive a decryption key or complete data release involves the notorious LockBit ransomware group. In early 2024, LockBit reportedly held onto data even after victims paid the ransom, violating their promise to delete stolen information. Despite assurances that paying would result in data deletion, investigators found that LockBit retained some victim data, leaving organisations exposed even after paying. This case underscores warnings from experts that paying ransomware demands often doesn’t guarantee full restoration or security. This outcome aligns with findings that approximately 80% of ransomware victims experience additional attacks or suffer continued exploitation, even after ransom payment. For more insights, check out sources like The Record which regularly cover ransomware trends and their implications.

How Ransomware Attacks Work: Key Stages

1. Infiltration

Infiltration is the first step in a ransomware attack. This is when attackers gain access to a computer system or network. They often use tactics like:

• Phishing emails: Sending fake emails that look real, containing harmful links or attachments. When someone clicks on these, the ransomware gets installed.
• Drive-by downloads: This happens when a user visits a compromised website, and malware automatically downloads to their device without them knowing.
• Exploiting weaknesses: Attackers look for security gaps in outdated software or systems to break in.

Once they infiltrate, they can start executing their ransomware to carry out their attack.

2. Execution

Once ransomware has infiltrated a system, it is activated and starts to work. This means the malicious software runs its program to spread throughout the network. Some more advanced types of ransomwares can stay hidden for a while, searching for valuable targets within the system before they spring into action. When it executes, it can quickly lock files or encrypt data, making it inaccessible to the user. This stage is crucial as it sets the stage for the next steps, leading to the ransom demand.

3. Encryption

During this stage, the ransomware starts encrypting files on the victim’s computer or network. This means it scrambles the data, making it unreadable without a special key. The ransomware usually changes the file names or extensions to show that they are encrypted. Once the encryption process is complete, the victim can no longer access their important files, such as documents, photos, or databases, until they either pay the ransom or find a way to unlock the files.

4. Ransom Demand

After the ransomware has encrypted the files or locked the system, it will display a ransom note. This note usually contains instructions on how to pay the ransom, often in cryptocurrency like Bitcoin. It will also specify a deadline for payment. The attackers might threaten to double the ransom or permanently delete the files if the victim does not pay within the given time. This creates urgency and pressure on the victim to decide quickly.

5. Negotiation (Optional)

In some cases, victims might try to negotiate the ransom amount with the attackers. This could involve asking for a lower payment or trying to get more time to gather the funds. However, there is no guarantee that the attackers will agree to the negotiation. Paying the ransom, even if a deal is reached, can sometimes lead to more problems, as it may encourage further attacks or exploitation. It is important to remember that negotiating with cybercriminals can be risky and may not lead to a positive outcome.

6. Data Restoration (If Ransom is Paid)

If the ransom is paid, the attackers may provide a decryption key to unlock your files. However, even after paying, there is no guarantee that all your data will be fully restored. Sometimes, files can be damaged or corrupted during the encryption process, so you might not get everything back as it was. It is important to remember that paying the ransom does not ensure that you will regain complete access to your information or that the attackers will not target you again.

Common Types of Ransomwares

Crypto Ransomware
Crypto ransomware is a type of malicious software that encrypts your files, making them unreadable. Once your files are locked, the attackers demand a ransom—usually in cryptocurrency—to provide you with a decryption key that can unlock your data. This means you will not be able to access important documents, photos, or other files until you pay the ransom. Even after paying, there is no guarantee that you will get your files back, as some attackers may not provide the key or may ask for more money.

Locker Ransomware

Locker ransomware is a type of malware that locks users out of their devices completely, preventing access to the operating system and all files. Unlike crypto ransomware, which encrypts files, locker ransomware typically leaves the files intact but makes it impossible to use the device until a ransom is paid. The attackers usually display a message demanding payment, often in cryptocurrency, and may threaten to delete data or increase the ransom if it is not paid promptly. Because users cannot access their systems, this type of ransomware can be particularly distressing and disruptive.

Double Extortion Ransomware

Double extortion ransomware is a particularly aggressive type of attack. In this scenario, cybercriminals not only encrypt your files and lock you out of your system but also steal sensitive data. They then demand a ransom to unlock your files and threaten to release the stolen data publicly if you do not pay. This means that victims face not just the risk of losing access to their files, but also the potential for their private information to be exposed, adding extra pressure to pay the ransom.

How to Protect Yourself from Ransomware Attacks

1. Back Up Your Data Regularly 

  To protect yourself from ransomware, it is essential to back up your important data regularly. This means saving copies of your files somewhere safe, like an external hard drive or a secure cloud storage service. By doing this, if ransomware does infect your system and locks your files, you will still have a copy you can restore without having to pay a ransom. Aim to update these backups frequently and store them offline or in locations that are not directly connected to your main network. That way, they remain safe from attacks.

2.  Keep Software Updated

   Keeping your software updated is one of the simplest yet most effective ways to protect yourself from ransomware attacks. Cybercriminals often exploit vulnerabilities—weak spots in software or operating systems—to gain access to systems. Software companies like Microsoft,  IBM, Cisco,  and many others release updates and patches regularly to fix these vulnerabilities as they are discovered. By keeping everything up to date, you make it harder for attackers to exploit known security flaws.

Here is how it helps:

• Closes Security Gaps: Each update patches any newly discovered vulnerabilities, removing opportunities for hackers to infiltrate.
• Improves Overall Security: Updates often include enhanced security features that make it tougher for ransomware to access or damage systems.
• Prevents Exploits of Known Flaws: Cybercriminals frequently target unpatched software, as known vulnerabilities are easier to exploit. Regular updates from the software provider ensure that your system is protected from these attacks.

To stay protected, enable automatic updates where possible. For critical systems or business applications, consider a scheduled update process to ensure all software remains secure without disrupting operations.

3. Use Reliable Security Software 

   To protect yourself from ransomware attacks, it is essential to invest in trustworthy security software. This software should include antivirus and anti-malware features that offer real-time protection against a wide range of cyber threats, including ransomware. Look for programs that regularly update their virus definitions and employ advanced threat detection technologies, such as heuristics and behaviour-based analysis, to catch ransomware before it can execute. Additionally, many security suites offer firewalls and other protective measures that can help block suspicious activity. By keeping your security software up to date and ensuring it runs regular scans, you can significantly reduce the risk of falling victim to ransomware attacks.

4.  Educate Your Team 

Educating your team about cybersecurity is crucial in preventing ransomware attacks. This means training employees on how to recognise phishing emails, which often trick users into clicking harmful links or downloading malware. It is also important to inform them about safe browsing habits and the risks associated with using unsecured networks. Regular workshops and reminders about the latest threats can help keep everyone aware and vigilant. The more knowledgeable your team is, the better equipped they will be to spot potential dangers and protect your organisation from cyber threats.

5. Enable Multi-Factor Authentication (MFA) 

 Multi-Factor Authentication (MFA) adds an extra layer of security to your accounts. Instead of just using a password, MFA requires you to provide two or more forms of verification before you can log in. This could be something you know (like your password), something you have (like a smartphone app that generates a code), or something you are (like a fingerprint). By enabling MFA, even if someone steals your password, they will not be able to access your account without the additional verification, making it much harder for attackers to compromise your accounts.

6.  Restrict Access Permissions

  Limiting who can access sensitive data is crucial for protecting against ransomware. Make sure only those who really need access to certain files or systems can view or edit them. By doing this, you reduce the chances of a cybercriminal getting into your system through someone’s account. It is also a good idea to restrict administrative privileges, so not everyone has the same level of access. This extra layer of security makes it harder for attackers to spread ransomware if they do manage to get into your network.

7.  Monitor Network Activity 

  Keeping an eye on your network activity means regularly checking for any unusual or suspicious behaviour. This includes looking for unexpected traffic, strange logins, or unrecognised devices connected to your network. By using monitoring tools or software, you can quickly spot signs of a ransomware attack or other cyber threats before they escalate. Early detection allows you to act, such as disconnecting affected devices or blocking intruders, helping to protect your data and systems from potential harm.

What to Do If You are a Victim of Ransomware

1. Disconnect and Contain
   If a user suspects that their system has been infected with ransomware, their first step should be to disconnect the infected device from the internet and any networks immediately. This helps prevent the ransomware from spreading to other devices and stops attackers from accessing your data further. Unplugging the device from Wi-Fi or removing the Ethernet cable is essential to contain the threat and protect any other connected systems.
2. Do Not Pay the Ransom

If you find yourself a victim of ransomware, it’s important not to pay the ransom. Paying does not guarantee that you will get your files back or that the attackers will not target you again in the future. In fact, paying could encourage further attacks on you or others. Instead, focus on seeking help from cybersecurity professionals who can assist in removing the ransomware and restoring your data from backups if you have them. Remember, there are often better ways to recover your data without giving in to the attackers’ demands.

3. Report the Attack

If you fall victim to ransomware, it is important to report the attack as soon as possible. Inform your local law enforcement and any relevant cybersecurity authorities. This not only helps you get assistance but also aids in tracking the criminals behind the attack. Reporting the incident can provide valuable information that helps prevent future attacks on others.

4. Seek Professional Help

If you find yourself a victim of ransomware, the first step is to contact cybersecurity experts. These professionals can assess the situation, help you remove the ransomware from your systems, and guide you on the best ways to recover your data. They have the tools and knowledge to deal with these attacks effectively, so do not hesitate to reach out for their assistance.

Final Thoughts

Ransomware is a rising threat that can lead to serious financial, operational, and reputational harm. Proactively implementing security measures and having a response plan ready can make a big difference. By understanding how ransomware works and taking preventive steps, both individuals and organisations can reduce their risk and keep valuable data secure.