Whether or not you have a background in information technology (IT), you’ve probably heard about ransomware attacks. Malicious cyber actors take advantage of vulnerabilities in widely used software and infiltrate computer systems to install malware that encrypts an organization’s data systems. They then demand ransom in exchange for restoring functionality. Similar to kidnapping, ransomware involves cyber criminals holding an organization’s data systems hostage and demanding payment in return. With the latest victim, casino operator Caesars, paying out a ransom of $15 million, ransomware has proved to be a long-standing problem. Days before Caesars’ attack, one of the world’s largest gambling firms MGM Hotels & Casinos suffered a similar attack and chose to shut down its computer systems for 10 days to contain the damage.
In the earlier days, it was slightly easier to manage ransomware attacks since cybercriminals would demand cash that could be traced. But with the latest developments in the technology industry with untraceable payment options, overcoming ransomware attacks is becoming a nightmare. According to Statista, about 72% of businesses worldwide have been affected by ransomware attacks as of 2023. In this article, we define ransomware attacks, describe how they work, and provide effective prevention strategies to help you protect yourself from such cyberattacks.
How ransomware attacks work
Ransomware attacks work by cybercriminals infecting victims’ computers with malware that encrypts valuable data and prevents them from accessing their files until they make ransom payments. Although cybercriminals can typically use different techniques to gain unauthorized access to data systems, the backbone structure of how ransomware attacks happen is pretty much the same. It involves:
Step 1: Gain system access
You may think that cybercriminals typically use forceful entry to gain system access, but that usually isn’t the case. The most common strategy they use is phishing attacks, where they disguise malicious software in an email link and trick you into accidentally downloading this software. These malicious programs often have built-in social engineering tools to trick you into accidentally providing administrative access.
Besides phishing, cybercriminals can also gain system access by bypassing an organization’s authentication and authorization systems, allowing cybercriminals to impersonate company staff and gain unauthorized system access. With many organizations taking up remote working systems, it’s become easier for cybercriminals to gain unauthorized access using Remote Desktop Protocol (RDP), through which they can directly download malicious software into the company’s computer systems.
Step 2: Data encryption
Once they’ve gained system access, step 2 involves data encryption to prevent users from accessing their data files. Ransomware variants typically use attacker-controlled keys to replace the original encryption keys with theirs to prevent data access. Some variants even take an extra step to download backup documents, making it nearly impossible to recover the kidnapped files without their decryption keys.
Step 3: Demand ransom
Once they’ve taken hostage the company’s data systems, they can now begin demanding ransom. Unlike kidnappers who use photos or videos to demand ransom, cybercriminals can change the computer’s background display to their ransom note or place text files containing the ransom notes in the encryption directory. They typically demand a specific amount of money in the form of cryptocurrency.
Prevention strategies for ransomware attacks
You can implement the following strategies to reduce your organization’s ransomware risk exposure:
Back up your data
Cybercriminals using ransomware attacks access and encrypt crucial system files and delete their backups. By doing this, they prevent you from accessing the files, forcing you to pay ransom for the decryption key. Creating data backups can eliminate their leverage such that you can just redownload the criminally encrypted files without paying the ransom. Cybersecurity professionals typically use the 3-2-1 data backup strategy that involves creating three backup copies, having two copies on-site but on different storage media, and securing one copy off-site.
Implement security awareness training
Cybercriminals commonly use phishing strategies to trick users into downloading malicious software onto their devices when initiating ransomware attacks. Training company staff on what to look for before clicking or opening an email and safe web surfing practices can prevent them from falling into phishing traps. You can also train company staff on responding to ransomware attacks promptly enough to minimize data loss.
Keep your systems up-to-date
Software developers and IT specialists often review their software and make changes to improve efficiency and eliminate vulnerabilities with software updates. They also study emerging cybercrime strategies to create system defenses against them. Keeping your systems up-to-date closes security gaps that cybercriminals can otherwise exploit while initiating ransomware attacks.
Limit user access
As mentioned earlier, cybercriminals can also gain system access by bypassing an organization’s authentication and authorization systems. Limiting user access to data files using strategies such as Role Based Access Control (RBAC) is popular. Besides preventing unauthorized data access by cybercriminals, restricting user access can also isolate ransomware spread to minimize data loss during an attack.
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