Ransomware Attacks: A Detailed Overview PDF

Ransomware is a malware designed to deny a user or organization access to files on their computer. By encrypting these files and demanding a ransom payment for the decryption key, cyberattackers place organizations in a position where paying the ransom is the easiest and cheapest way to regain acces...

Ransomware is a malware designed to deny a user or organization access to files on their computer. By encrypting these files and demanding a ransom payment for the decryption key, cyberattackers place organizations in a position where paying the ransom is the easiest and cheapest way to regain access to their files. Some variants have added additional functionality -- such as data theft -- to provide further incentive for ransomware victims to pay the ransom. The modern ransomware craze began with the WannaCry outbreak of 2017. This large-scale and highly-publicized attack demonstrated that ransomware attacks were possible and potentially profitable. Since then, dozens of ransomware variants have been developed and used in a variety of attacks. The COVID-19 pandemic also contributed to the recent surge in ransomware. As organizations rapidly pivoted to remote work, gaps were created in their cyber defenses. Cybercriminals have exploited these vulnerabilities to deliver ransomware, resulting in a surge of ransomware attacks. In an age dominated by digital risks, a staggering 71% of companies have encountered ransomware attacks, resulting in an average financial loss of \$4.35 million per incident.In the year 2023 alone, [attempted ransomware attacks have targeted 10% of organizations globally](https://blog.checkpoint.com/research/check-point-research-2023-the-year-of-mega-ransomware-attacks-with-unprecedented-impact-on-global-organizations/). This marks a notable rise from the 7% of organizations facing similar threats in the previous year, representing the highest rate recorded in recent years. According to Cybersecurity Ventures, ransomware attacks will cost victims over \$265 billion in annual damages by 2031. In order to be successful, ransomware needs to gain access to a target system, encrypt the files there, and demand a ransom from the victim. While the implementation details vary from one ransomware variant to another, all share the same core three stages: First, Ransomware, like any malware, can gain access to an organization's systems in a number of different ways. However, ransomware operators tend to prefer a few specific infection vectors. One of these is phishing emails. A malicious email may contain a link to a website hosting a malicious download or an attachment that has downloader functionality built in. If the email recipient falls for the phish, then the ransomware is downloaded and executed on their computer. Another popular ransomware infection vector takes advantage of services such as the Remote Desktop Protocol (RDP). With RDP, an attacker who has stolen or guessed an employee's login credentials can use them to authenticate to and remotely access a computer within the enterprise network. With this access, the attacker can directly download the malware and execute it on the machine under their control. Others may attempt to infect systems directly.  After ransomware has gained access to a system, it can begin encrypting its files. Since encryption functionality is built into an operating system, this simply involves accessing files, encrypting them with an attacker-controlled key, and replacing the originals with the encrypted versions. Most ransomware variants are cautious in their selection of files to encrypt to ensure system stability. Some variants will also take steps to delete backup and shadow copies of files to make recovery without the decryption key more difficult. Once file encryption is complete, the ransomware is prepared to make a ransom demand. Different ransomware variants implement this in numerous ways, but it is not uncommon to have a display background changed to a ransom note or text files placed in each encrypted directory containing the ransom note. Typically, these notes demand a set amount of cryptocurrency in exchange for access to the victim's files. If the ransom is paid, the ransomware operator will either provide a copy of the private key used to protect the symmetric encryption key or a copy of the symmetric encryption key itself. This information can be entered into a decryptor program (also provided by the cybercriminal) that can use it to reverse the encryption and restore access to the user's files. While these three core steps exist in all ransomware variants, different ransomware can include different implementations or additional steps. For example, ransomware variants like Maze perform files scanning, registry information, and data theft before data encryption. A successful ransomware attack can have various impacts on a business. Some of the most common risks include: - Ransomware attacks are designed to force their victims to pay a ransom. Additionally, companies can lose money due to the costs of remediating the infection, lost business, and potential legal fees. - Some ransomware attacks encrypt data as part of their extortion efforts. Often, this can result in data loss, even if the company pays the ransom and receives a decryptor. - Ransomware groups are increasingly pivoting to double or triple extortion attacks. These attacks incorporate data theft and potential exposure alongside data encryption. - Ransomware attacks can harm an organization's reputation with customers and partners. This is especially true if customer data is breached or they receive ransom demands as well. - Ransomware attacks may be enabled by security negligence and may include the breach of sensitive data. This may open up a company to lawsuits or penalties being levied by regulators. Taking the following best practices can reduce an organization's exposure to ransomware and minimize its impacts: **Cyber Awareness Training and Education:** Ransomware is often spread using phishing emails. Training users on how to identify and avoid potential ransomware attacks is crucial. As many of the current cyber-attacks start with a targeted email that does not even contain malware, but only a socially-engineered message that encourages the user to click on a malicious link, user education is often considered as one of the most important defenses an organization can deploy. **Continuous data backups: ** Ransomware's definition says that it is malware designed to make it so that paying a ransom is the only way to restore access to the encrypted data. Automated, protected data backups enable an organization to recover from an attack with a minimum of data loss and without paying a ransom. Maintaining regular backups of data as a routine process is a very important practice to prevent losing data, and to be able to recover it in the event of corruption or disk hardware malfunction. Functional backups can also help organizations to recover from ransomware attacks. **Patching:** Patching is a critical component in defending against ransomware attacks as cyber-criminals will often look for the latest uncovered exploits in the patches made available and then target systems that are not yet patched. As such, it is critical that organizations ensure that all systems have the latest patches applied to them, as this reduces the number of potential vulnerabilities within the business for an attacker to exploit. **User Authentication: **Accessing services like RDP with stolen user credentials is a favourite technique of ransomware attackers. The use of strong user authentication can make it harder for an attacker to make use of a guessed or stolen password. **What are the primary consequences of a ransomware attack on an organization?** The primary consequences include denial of access to files, potential financial loss, and the possibility of data theft. **How did the COVID-19 pandemic influence the frequency of ransomware attacks?** The pandemic created gaps in cyber defenses as organizations shifted to remote work, which cybercriminals exploited to deliver ransomware. **What was the significance of the WannaCry outbreak in 2017 regarding ransomware?** The WannaCry outbreak marked the beginning of widespread awareness and profitability of ransomware attacks, demonstrating their potential impact. **What are some common methods used by ransomware operators to gain access to a system?** Phishing emails, Remote Desktop Protocol (RDP) attacks, and direct system infections. **Describe the process that ransomware follows once it has gained access to a system.**  It encrypts files using an attacker-controlled key, replaces original files with encrypted versions, and may delete backup and shadow copies. **What steps do ransomware variants take to ensure that recovery without the decryption key is difficult?** they selectively encrypt files to maintain system stability and delete backup and shadow copies. **What are some common risks that businesses face as a result of a ransomware attack?** Businesses can face financial losses from ransom payments, costs of remediation, lost business, legal fees, data loss, reputational damage, and potential lawsuits. **How do different ransomware variants, such as Maze, differ in their approach to attacks?** Different ransomware variants may include additional steps like file scanning, registry information gathering, and data theft before encrypting data. **What are the potential consequences of a ransomware attack on an organization\'s reputation?** Consequences can include loss of customer trust, damage to relationships with partners, and negative publicity, especially if customer data is breached. **What are the benefits of maintaining regular data backups for an organization?** Regular data backups help prevent data loss, enable recovery from corruption or hardware malfunction, and allow recovery from ransomware attacks.