What Is Ransomware and How Does It Work?

What is ransomware?

Ransomware is a type of malicious software designed to block access to data, files, and/or an entire computer system until a sum of money is paid. Ransomware is known to target organizations that have perceivably weak cybersecurity systems and the ability to pay large ransoms.

How does ransomware work?

There are a number of ways ransomware can infect your computer or organization. One of the most common methods is phishing, in which victims are sent emails with attachments that look trustworthy but are actually malware in disguise.

Once the attachments are downloaded and opened, they can start to infiltrate the victim’s computer, locking up programs and/or encrypting files to restrict access. Some ransomware attacks have built-in social engineering tools that trick victims into granting administrative access and passwords to the network, which can enable the malware to spread to other computers in the organization.

Stages of a ransomware attack

1. Infection: The attacker gains entry, often through phishing emails or exploiting vulnerabilities.
2. Execution: The ransomware encrypts files or locks access to the system.
3. Demand: The attacker demands a ransom, often in cryptocurrency.
4. Payment: The victim may or may not comply with the ransom payment request.
5. Decryption (or failure): If paid, the attacker may send a decryption key, or the victim may be left without access to the data.

Types of ransomware

Ransomware comes in various forms, including:

• Crypto Ransomware: Encrypts files, making them unusable unless the ransom demand is paid for the decryption key. This often leaves the ransomware victim with few options for recovery.
• Locker Ransomware: Locks the entire system, preventing access until payment is made. Victims may face a total loss of access, with no way to restore it without paying the demand.
• Scareware: Misleads victims into thinking their system is infected and prompts them to pay for fake fixes. While it may not encrypt files, it can still lead to a breach if sensitive information is provided.
• Doxware: Threatens to release sensitive data unless a ransom is paid. The ransomware attacker uses the threat of data breach to coerce victims into compliance.

Examples of ransomware

• WannaCry: A global attack exploiting unpatched vulnerabilities, affecting over 200,000 systems. Ransomware recovery is difficult, especially for organizations with inadequate prevention measures.
• Ryuk: Targets large businesses and government agencies, demanding high ransoms. Ryuk leads to significant disruptions and can cause exposure of sensitive information if the ransom is not paid.
• CryptoLocker: Encrypts files and demands payment in cryptocurrency. Victims face the risk of losing access to crucial encrypted files without the demand being met.

Ransomware trends

Ransomware attacks are becoming increasingly sophisticated with the rise of:

• Double extortion tactics: Attackers encrypt data and threaten to leak it unless the ransom is paid. Victims face the threat of a data breach along with the demand.
• Ransomware-as-a-Service (RaaS): Enables less skilled criminals to carry out attacks using pre-made tools. This growing trend has made malware attacks more frequent and harder to prevent.
• Targeting critical sectors: Healthcare, education, and government sectors are frequent targets due to their reliance on continuous operations. These sectors often lack the ransomware prevention strategies needed to avoid massive data breaches.

Ransomware’s impact on business

Ransomware attacks can have devastating consequences for businesses. The financial impact can be severe, with ransom payments, recovery costs, and operational downtime taking a toll on an organization’s budget.

Additionally, reputation damage is a significant risk, as trust erodes among customers when sensitive data is compromised. Moreover, operational disruption can bring business activities to a halt, leading to lost revenue as systems are offline and employees are unable to access critical data.

Why you shouldn't pay ransomware

Paying the ransom is not a guarantee that the attacker will provide the decryption key, making it a risky option. Furthermore, paying the ransom only fuels further cybercrime, encouraging attackers to target the same or other organizations.

Even after paying, there’s no assurance that the company won’t be attacked again, leaving them vulnerable to more frequent or severe breaches.

New ransomware trends

Ransomware threats continue to evolve, with attackers becoming more sophisticated. For example, fileless ransomware targets system memory rather than files, making detection and removal more difficult.

Attackers are also increasingly exploiting cloud-based platforms like Google Drive, Dropbox, and OneDrive to host malware, creating new challenges for businesses that rely on these tools for collaboration and storage.

How do I prevent ransomware from attacking my organization?

You need a sophisticated security solution that provides multiple tools to detect and block ransomware before it can harm your organization. You also need to be able to backup and recover data quickly in the event of a ransomware attack. Furthermore, one of the best ways to prevent ransomware attacks in your organization is to ensure that everyone has a basic level of security awareness training that can help them identify suspicious email attachments and links. Mimecast can help on all fronts.

What to do if you have been attacked with ransomware

The first thing you should do if you have been attacked with ransomware is immediately disconnect the infected computer from the network and from any shared storage. This will help prevent ransomware from spreading to other computers. Document any ransom messages that you have received, and report the ransomware attack to the authorities by contacting the U.S. Cybersecurity and Infrastructure Security Agency (CISA) at www.us-cert.gov/report, and by reaching the FBI through a local field office.

Proactive ransomware solutions

Mimecast offers a multi-layered approach to detect ransomware and prevent it from blocking access to email or data. This includes automatically detecting and isolating potential threats, such as suspicious links or email attachments, and also empowering employees in your organization to recognize potential threats themselves and comply with basic cybersecurity protocols like setting strong passwords.

Protect your organization with ransomware solutions

Every day brings news of another business or government agency falling victim to a ransomware attack that has devastating consequences – major financial loss, service disruptions, and loss of confidence from customers and citizens. Don’t be a statistic. Mimecast helps keep end-users safe from even the most sophisticated email-borne attacks.

The challenges of ransomware email security

In the past year, 75% of organizations reported they had been impacted by ransomware, a figure that continues to rise in Mimecast’s annual State of Email Security report. Any organization, large or small, is the target for a ransomware attack. However, many are not ready for ransomware as they lack effective prevention, a plan for zero downtime, or a process to recover quickly.

The Mimecast ransomware protection solution

Mimecast’s services deliver advanced ransomware protection

The Mimecast solution helps organizations like yours prevent email-borne ransomware as well as protect email systems from downtime or data loss. Unlike vendors of standalone security or backup products, Mimecast tackles ransomware with a layered cyber resilience solution; bringing together data protection, business continuity, archiving , and recovery capabilities for your email from a single cloud solution.

Mimecast’s ransomware protection solution helps:

• Prevent email-borne ransomware infections through multi-layered inspection.
• Avoid email outages and maintain user productivity with a 100% uptime SLA.
• Eliminate data loss with archiving.
• Automate the quick recovery of impacted email and attachments.

Expert insight into ransomware protection

Expert ransomware protection is more than just preventing ransomware breaches, but also enabling your business to function at optimal efficiency. Mimecast specializes in helping businesses protect against ransomware without compromising efficiency of communication.

Mimecast offers fully customizable plans to suit your unique needs - schedule a demo to explore how you can protect against ransomware.