What is Ransomware and How Does it Affect Your Business?
Ransomware is malware that encrypts data or files, preventing access until a payment is made. Attackers use phishing emails with malicious attachments or drive-by downloading to infect computers. Once the malware is in place, it looks for files to encrypt, and then replaces the originals with encrypted versions. Many variants also delete backup and shadow copies of files to make recovery without the decryption key more difficult.
The attackers then display a message asking for a payment to restore the files. Cybercriminals typically demand a small amount of cryptocurrency, such as Bitcoin, in exchange for the keys to unlock the data. Often, they offer to increase the amount if you don’t pay right away. This is called double extortion and is a common tactic in ransomware attacks.
In addition to the financial impact of ransomware, it can also create legal and regulatory issues. For example, if an attacker gains unauthorized access to sensitive information, it can lead to lawsuits and compliance violations under frameworks like GDPR and HIPAA. It can also damage customer trust in the long term.
For organizations, the first step in responding to a ransomware attack is containment. Restoring from backups is the recommended approach, but this can take time and result in lost productivity. Involving law enforcement takes even more time and can result in public disclosure of the attack, which further damages a company’s reputation. There are no guarantees that a company will receive the keys to decrypt the data even if it pays the ransom.