Ransomware has become one of the most pervasive and costly threats to businesses worldwide. In 2023 alone, North American companies faced over $1 billion in ransomware payouts, with global costs estimated to reach $265 billion annually by 2031. However, ransomware attacks can be prevented. This guide provides actionable steps to safeguard your organization from ransomware and build long-term resilience against cyber threats.
What is Ransomware?
Ransomware is malicious software (malware) designed to block access to a system, network, or data by encrypting it until a ransom is paid. Cybercriminals often demand payment in cryptocurrency to ensure anonymity. Ransomware attacks can cause significant financial, operational, and reputational damage to businesses.
Typically, there are two types of ransom schemes:
- Loss: the cybercriminal holds your data hostage and threatens not to return it until the ransom is paid.
- Breach: the cybercriminal holds your data hostage and threatens to make it public and release it to the world if the ransom is not paid.
Technically, ransomware attacks can be perpetrated in several ways. Cybercriminals can exploit system or protocol vulnerabilities or send phishing emails. Some of the most infamous ransomware malware are WannaCry, Petya/NotPetya, LockBit, Ryuk, Conti, REvil, DarkSide, and Maze. Many of these have been around for almost a decade and continue to spread.
Ransomware is a widespread attack because the amount asked for the ransom is generally cheaper than the costs of interrupting operations and having a security team restore your data.
How does a ransomware attack happen?
Ransomware typically infiltrates a system through the following vectors:
Phishing Emails: Malicious attachments or links sent via deceptive emails.
Drive-by Downloads: Automatic downloads from compromised or malicious websites.
Remote Desktop Protocol (RDP) Exploits: Unauthorized access via weak or stolen RDP credentials.
Software Vulnerabilities: Exploiting unpatched software or outdated operating systems.
Infected USB Drives: Physical media containing malware.
In the video below, you can see what a ransomware attack looks like. When the system is compromised, a ransomware request pops up, with instructions to pay the ransom (typically via cryptocurrencies) and a link for the payment. Cybercriminal organizations often have a business-like setup, with call centers and support teams to help infected users pay and unlock their data with an unencryption key.
How to respond to a ransomware attack
Early detection of a ransomware attack and swift containment can mitigate its impact. Unusual or encrypted file extensions, suspicious user behaviour, and unexpected network traffic spikes are common indicators of compromise (IoC).
As you detect a problem, disconnect infected devices from the network immediately to prevent the malware from spreading further. Communication is also critical: immediately inform your IT teams, leadership, and legal representative.
If ransomware infiltrates your systems, take the following steps:
Do Not Pay the Ransom: Paying does not guarantee data recovery and encourages further attacks.
Identify the Strain: Use free online tools (e.g., ID Ransomware) to identify the ransomware type.
Restore from Backups: If backups are secure and unaffected, use them to restore operations.
Engage Professionals: Hire cybersecurity experts to assess and clean the environment. Report the attack to relevant authorities and regulatory bodies.
Communicate Transparently: Inform affected stakeholders and customers with transparent and honest updates.
Long-Term Strategies
To build resilience against future attacks, consider the following:
Adopt Zero Trust Architecture: Treat every access request as a potential threat, verifying every user and device.
Conduct Regular Risk Assessments: Evaluate and address vulnerabilities in your security posture periodically.
Engage in Threat Intelligence Sharing: Collaborate with industry groups and share insights to stay informed about emerging threats.
Invest in Cyber Insurance: Ensure your business has adequate coverage for financial losses related to cyber incidents.
How to prevent ransomware attacks
Proactively protecting your business from ransomware attacks remains the best option. This involves a combination of technical solutions, employee training, robust policies, and a contingency plan for emergencies.
Deploy robust antivirus and anti-malware tools on all devices.
Network-based firewalls and IDS monitor and block suspicious activities. You can read more about Firewall protection here.
Implement spam filters to block phishing emails and malicious attachments.
Regularly update all software and operating systems to close security vulnerabilities.
Maintain secure, regular backups of critical data. Encrypt backups and store them offline or in a separate network segment.
Enforce the principle of least privilege (PoLP) to limit user access to essential systems and data.
Educate employees on recognizing phishing emails, suspicious links, and malicious attachments.
Conduct regular cybersecurity awareness programs and simulated phishing tests.
Develop a clear incident response plan.
Enforce a strong password policy and implement multi-factor authentication (MFA).
Establish an acceptable use policy for company devices and networks.
In the video below, you will better understand how data backups and MFA are essential to your protection strategy against ransomware attacks.
Ransomware is a growing threat, but a proactive, layered defence strategy can help protect your business. The important is that you’re not unprepared.
