What Is Ransomware?
Ransomware is a cyber-extortion tactic that uses malicious software to hold a user’s computer system hostage until a ransom is paid. Ransomware attackers often demand ransom in cryptocurrency such as Bitcoin due to its perceived anonymity and ease of online payment. The malicious software used in a ransomware attack locks a user’s computer for a limited time after which the ransom increases in price or the user’s data is destroyed.
Key Takeaways
- Ransomware is a form of malware that encrypts a user's computer files for a period of time, rendering them inaccessible, until a ransom is paid to the attacker.
- The ransom is often demanded in a cryptocurrency such as Bitcoin, which facilitates the online and anonymous payment.
- If the ransom is not paid in a timely manner, the amount demanded may increase until ultimately the user's data is destroyed entirely.
- Ransomware attacks have been identified around the world, costing billions of dollars in bounty paid each year.
Understanding Ransomware
Ransomware is a rapidly advancing criminal activity that affects businesses, financial institutions, government agencies, medical institutions, and other organizations; it is the product of the advancement of digital technology. Although the advancement of digital technology has made a way for companies to enhance their relationships with consumers by offering more personalized services at personalized costs, technology isn't only used by legitimate users to improve their processes. Miscreants are also using emergent technology tools to improve their online attacks, either for fun or profit. Data breaches are done to steal personally identifiable information of individuals that will be sold through underground web channels for legal tender or cryptocurrencies.
Cyberattacks like Denial of Service (DoS) may be carried out for fun or to make a statement. Some attackers deny a business access to its computer by demanding a certain amount of Bitcoin as payment in order to gain re-entry into the system. This latter unscrupulous means of getting a paycheck is done through Ransomware, which in a way is a form of a DoS attack.
$20 billion
Ransomware is suspected to have cost the global economy $20 billion in 2020.
How Ransomware Works
Ransomware is a type of malicious software, or malware, that encryptsa computer’s system data with a key that only the attacker has. The malware is normally injected in an email attachment, software, or unsecured website. A user who tries to access any of these infected programs will trigger the ransomware which either locks the computer screen or encrypts the files in the system. A full-screen window pops up with information that states the user’s computer has been blocked, the amount in money or Bitcoins required to unlock the system, and a countdown timer which indicates the amount of time left before the data held hostage is destroyed or before the ransom is increased. Ransomware attackers usually demand payment to be wired through Western Union or paid through a specialized text message. Some attackers demand payment in the form of gift cards like an Amazon or iTunes Gift Card. Ransomware demands can be as low as a few hundred dollars to as much as $50,000. After payment is made, the hackers decrypt the files and release the system.
Ransomware attackers can infect many computers at once through the use of botnets. A botnet is a network of devices compromised by cybercriminals without the knowledge of the owners of the devices. The hackers infect the computers with malware that gives them control of the systems, and use these breached devices to send millions of compromised email attachments to other devices and systems. By kidnapping multiple systems and expecting the ransom to be paid, the perpetrators are banking on having a huge payday.
Example of Ransomware
A company that has been held hostage by ransomware can have its proprietary information destroyed, operations disrupted, reputation harmed, and finances lost. In 2016, Hollywood Presbyterian Medical Center paid about $17,000 in Bitcoins to ransomware attackers who had taken the data of the hospital’s patients hostage. During the crisis, some patients had to be transferred to other hospitals for treatment and the medical records system was inaccessible for ten days, disrupting the daily operations of the hospital.
FAQs
Ransomware is a form of malware that encrypts a user's computer files for a period of time, rendering them inaccessible, until a ransom is paid to the attacker. The ransom is often demanded in a cryptocurrency such as Bitcoin, which facilitates the online and anonymous payment.
What is ransomware with an example? ›
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.
What is ransomware and briefly explain how does it work? ›
Ransomware is a type of malicious software (malware) that threatens to publish or blocks access to data or a computer system, usually by encrypting it, until the victim pays a ransom fee to the attacker. In many cases, the ransom demand comes with a deadline.
How does ransomware work and spread? ›
Deceptive phishing emails are the most common way for ransomware attacks to start, but they can also begin with infected portable devices like USB drives, unsecured public Wi-Fi networks, exploitation of zero-day vulnerabilities, and covert drive-by downloads from malicious websites.
What is ransomware for dummies? ›
Ransomware is extortion software that can lock your computer and then demand a ransom for its release.
How does ransomware get delivered? ›
Some of the most common ways ransomware is delivered are through phishing emails, drive-by downloads, exploit kits and RDP exploits. According to Malwarebytes' 2024 State of Malware report, in 2023 the number of known ransomware attacks increased by 68% from the previous year.
How does ransom work? ›
Ransomware is a type of malware which prevents you from accessing your device and the data stored on it, usually by encrypting your files. A criminal group will then demand a ransom in exchange for decryption. The computer itself may become locked, or the data on it might be encrypted, stolen or deleted.
How does ransomware get on your device? ›
Ransomware is often spread through phishing emails that contain malicious attachments or through drive-by downloading. Drive-by downloading occurs when a user unknowingly visits an infected website and then malware is downloaded and installed without the user's knowledge.
How does ransomware make money? ›
Ransomware is a cyber-extortion tactic that uses malicious software to hold a user's computer system hostage until a ransom is paid. Ransomware attackers often demand ransom in cryptocurrency such as Bitcoin due to its perceived anonymity and ease of online payment.
What is a typical ransomware attack? ›
Before attackers can demand a ransom, they must infiltrate their victims' systems and infect them with malware. The most common ransomware attack vectors are phishing, Remote Desktop Protocol (RDP) and credential abuse, and exploitable software vulnerabilities: Phishing.
Ransomware is software that infects computer networks and mobile devices to hold your data hostage until you send the attackers money.
What is the most active ransomware? ›
#1: LockBit 3.0 Ransomware Operator(s) As of July 2022, LockBit 3.0 is a ransomware-as-a-service (RaaS) group that continues the legacy of LockBit and LockBit 2.0. They are also the most active RaaS group targeting the U.S. HPH.
What does ransomware look like? ›
Ransomware message
Ransom notes are often displayed on the victim's systems or devices once the encryption or data erasure process is complete. The ransom notes typically contain instructions the victim is to follow in order to gain access to their data or devices.
How does ransomware steal data? ›
Ransomware allows hackers to browse valuable and confidential documents or data from the infected device to send themselves a copy. They do this before encrypting the victim's data. Once they receive the data, they ask the victim to make ransom payments. The amount of the payment is concluded as per the data stolen.
How do companies get hit with ransomware? ›
How did it happen? Ransomware can get in via so many paths. Maybe somewhere, somebody in the company fell for a phishing scam and now you find… Some or all of your customer and data files are scrambled with unbreakable encryption and bizarre file extensions.
What is ransomware in one word? ›
Ransomware is a type of malware that prevents or limits users from accessing their system, either by locking the system's screen or by locking the users' files until a ransom is paid.
What is the most common way to get infected with ransomware? ›
Ransomware is often spread through phishing emails that contain malicious attachments or through drive-by downloading. Drive-by downloading occurs when a user unknowingly visits an infected website and then malware is downloaded and installed without the user's knowledge.
Can you remove ransomware? ›
You can delete malicious files manually or automatically using the antivirus software. Manual removal of the malware is only recommended for computer-savvy users. If your computer is infected with ransomware that encrypts your data, you will need an appropriate decryption tool to regain access.
