Technology evolves at a breakneck pace and cyber criminals have proven troublingly adept at keeping up. Digital assailants continually refine their tactics to become more sophisticated, and today, one of the most advanced and prevalent cyber threats we face is ransomware. Ransomware is a form of malware (short for “malicious software”), designed to encrypt and steal data from your network and personal devices, making the files and any systems that rely on them unusable. Once the bad guys get in, they attempt to "move laterally" within your network, seeking to establish new login credentials with authorization to modify or delete data. Then, the bad actors demand a ransom fee to decrypt the files or to refrain from leaking them. As these cyber attacks become more complex and rampant, they pose a risk not just to businesses and individuals, but to the economic health of entire countries.
How Ransomware Attacks are Carried Out
Ransomware attacks are committed through various channels, with email phishing, Remote Desktop Protocol (RDP) and software vulnerabilities being primary entry points. These breaches often begin with email phishing schemes, which leverage authentic looking emails containing malicious links or attachments to deceive users into unwittingly installing malware. Initially designed to provide convenient remote access to servers and desktops, RDP has regrettably become a prime target for exploitation. An alarming report from cyber security firm Sophos revealed that over 90% of cyber attacks in 2023 exploited RDP vulnerabilities. Intruders typically breach networks through exposed RDP ports, then move swiftly, downloading malware and disabling cybersecurity measures. Lastly, attackers capitalize on unpatched or outdated software, exploiting known vulnerabilities to infiltrate systems and deploy ransomware. Cyber attackers use a multi-layered approach to infiltrate systems and deploy ransomware, underscoring the critical need for organizations to have comprehensive cybersecurity measures in place, including proactive software maintenance, to help mitigate the risk of a cyber attack.
The Global Price of Cybercrime and Ransomware Attacks
Cybercrime and ransomware have an extreme financial impact globally. In fact, the latest World Economic Forum Global Risks Report, released in January of 2024 lists cyber crime as the world’s third largest economy, trailing behind only the United States and China. With costs projected to soar to an estimated $10.5 trillion annually by 2025, cybercrime poses a significant financial risk to entities of all sizes, including individuals, businesses, and governments around the world. In a report released by crypto-tracking firm Chainalysis, cybercriminals took in $1.1 billion in ransom payments in 2023. According to Forbes, an organization loses $1.3 million in the average data breach. Beyond the direct costs related to cybercrime, like ransomware extortion payments, there are also indirect costs, like expenses needed to upgrade security to avoid another attack in the future. Businesses may also be required to pay regulatory fines for non-compliance with data protection laws or industry regulations. The bottom line is, if you experience a breach, the financial implications may be staggering.
The Reputational Cost of Cybercrime and Ransomware Attacks
Perhaps even more consequential than the financial impact, though difficult to quantify, is the reputational damage businesses can suffer in the aftermath of a cyber attack. For instance, the exposure of sensitive customer data, like credit card information, can trigger a cascade of detrimental effects. Customers' trust and loyalty can erode and the company’s public image may be tarnished, potentially resulting in lost business. Ultimately, reputational harm often translates into tangible financial losses, like reduced sales, revenue decline, and a decreased market value for the company. Once trust is compromised with clientele, investors and other important stakeholders, it can be difficult to rebuild and have serious financial implications.
How to Protect Your Business Against Cybercrime and Ransomware
According to Forbes, ransomware attacks rose 128% between 2022 and 2023. It’s not a question of if a cyber attack will be attempted on your organization, but when. Entities of all sizes should employ proactive, comprehensive security measures to help reduce their risk, including performing frequent system backups, storing your backups separately, and training your organization on cybersecurity threats. To ensure you can restore your system if it becomes infected by ransomware in the event of an attack, you should perform regular system back ups. Backups should then be stored on a separate device that’s inaccessible from a network, like an external hard drive. Further, businesses should perform mandatory, regular cybersecurity training for employees to keep them informed on the latest in cybersecurity trends and tactics. Your workforce is both the weakest link and your number one defense against cyberthreats, so ensure they’re continuously trained to help protect your digital assets. Lastly, if you have a cyber liability insurance policy, it’s crucial you understand and are adhering to the stipulations outlined in your policy. This helps ensure your protection in the event of a breach, and minimizes the risk of your claim being denied by your cyber insurance. As cyberthreats evolve and multiply, a robust cybersecurity strategy is paramount.
What to Do If You Experience a Ransomware Attack
As our world becomes increasingly connected and reliant on technology, cybercrime will continue to surge. If you experience a ransomware attack, immediately report the incident to your IT help desk or security office. Refer to the ransomware response checklist on the Ransomware Guide provided by the United States Cybersecurity Infrastructure Security Agency (CISA). Once the ransomware has been removed, change all of your system passwords and scan your backup data with an antivirus program to check that it’s free of malware. In a world where cybercrime looms large, protecting your business from ransomware is not just essential—it's imperative for survival in the digital age.