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What is Ransomware?

December 6, 2022 By Rublon Authors

Last updated on January 26, 2023

There were more than 500 million ransomware attacks in 2021, and those numbers haven’t subsided this year. In fact, there were more than 236 million ransomware attacks worldwide in the first half of 2022 alone. 

Some of the most recent high-profile cases include big companies such as Apple, Acer, and Colonial Pipeline. Colonial Pipeline and Acer paid the ransom in cryptocurrency and wire transfers, but Apple refused to pay the cybercriminals and had some of its trade secrets made public. 

It’s a scary prospect to have your personal or business files, and sensitive data held hostage until you pay up. In this article, we’ll discuss ransomware threats, what they are, and how you can protect yourself against such threats. 

What is Ransomware

What is Ransomware?

Ransomware, a portmanteau of “ransom” and “malware” (which is, in turn, a blend of words “malicious” and “software”), is a form of malware that blocks users from accessing their personal or system files and demands a ransom payment in exchange for access. 

Although some individuals might believe that a computer virus has locked their computer, ransomware is a type of malware that’s distinguished from a typical computer virus. Ransomware blocks access to a user’s operating system or personal files, usually through encryption methods, while a computer virus self-replicates by inserting its code into other programs. 

The first ransomware versions were created in the late 1980s, and they demanded payment through postal mail. Today, ransomware authors demand payment by bitcoin or credit card, and attackers target different types of people, companies, and organizations. Moreover, most ransomware groups now offer Ransomware-as-a-Service, or RaaS, where certain ransomware authors provide their services to other online criminals.

How Ransomware Works

Ransomware usually employs an asymmetric encryption method, which implies using both encryption and decryption keys to encrypt files. The attacker generates unique public-private key pair for the ransomware victims, with the private key being used to decrypt files kept on the attacker’s servers. 

Only after the ransom is paid does the attacker release the victim’s private key, though recent ransomware attacks have shown that this is not always the case. It is very hard to decode the files that are being held for ransom without the private key.

The malicious software frequently spreads through targeted attacks or email phishing operations. To make an endpoint its home, malware needs an attack vector. Once its presence is confirmed, the malware remains on the system until its purpose is served.

Ransomware drops and runs a malicious payload on the compromised system after a successful exploit. Then, this program finds and encrypts valuable information, including databases, pictures, and Microsoft Word documents. To spread to additional systems and perhaps to entire businesses, the ransomware may also use network and other system vulnerabilities.

Once data on the victim’s computer has been encrypted, ransomware notifies the user that they must pay a ransom within 24 to 48 hours to unlock the files; otherwise, the files would be permanently lost. The victim is forced to pay the ransom to restore personal files if a data backup is not accessible or if those backups are also encrypted.

Only after successful extortion, when the ransom is paid, does the attacker release the victim’s private key, allowing the ransomware victims to gain access to their files. Most private and personal users don’t usually store massive amounts of sensitive data, so there’s very little risk involved with ransomware infections on the personal computers of everyday Joes and Janes. 

In most cases, cyberattacks target corporate users, who can provide access to sensitive data on a corporation’s server. The usual practice is to encrypt the files and then extort the company by threatening to disclose trade secrets publicly unless the ransom is paid. 

How Do Ransomware Attacks Happen?

The typical ransomware assault starts encrypting your network and locking your company’s files in under three seconds. Ransomware protection and ransomware prevention are considerably simpler than trying to recover ransomware files after you’ve fallen victim.

Here are the three most typical ransomware attack methods and information on how to protect your company against a cyber assault.

Phishing Emails

Phishing is the practice in which attackers send malicious emails meant to lead recipients to fall for a scam. Usually, the goal is to entice people to divulge sensitive data like system logins or financial information. However, it can also be used as a delivery system for trojan encryption or other malicious code disguised as email attachments. 

It’s a perfect example of social engineering, in which hackers use a set of strategies to influence people’s psychology. Forgery, misdirection, and lying are all social engineering strategies that can be used in phishing attempts. Phishing emails essentially use social engineering to get recipients to behave without carefully considering their actions.

An assault is presented as a message from an authorized business or a target’s workplace superior. By conveying a sense of urgency in the message that could threaten account suspension, hackers can dupe users into complying with their requests without pausing to consider if the demands are acceptable. One phishing victim is all it takes to trigger a serious data breach. 

Luckily, modern email clients and various business processing software have cybersecurity and anti-malware implementations and usually do a very good job of filtering phishing emails and malicious attachments. 

Exploit Kits

Ransomware can access your network through exploit kit flaws. An exploit kit is a malware tool that helps cybercriminals target victims through software and hardware security holes. For example, the WannaCry ransomware attack infected more than 300,000 Windows devices in 2017. The malware exploited a Windows vulnerability using a stolen NSA exploit called EternalBlue. 

The vulnerability was resolved when Microsoft published official security upgrades to Windows Server Message Block (SMB). Exploit kits target Adobe Java, Adobe Flash, and Microsoft Silverlight vulnerabilities. 

Malvertising

Malvertising is another infection tactic. Malvertising uses internet ads to deliver malware without user input. Users can be routed to criminal servers from reputable websites without clicking an ad. These servers catalog target machines and locations, then send the appropriate exploit that delivers ransomware on the targeted systems. All this happens without the user’s knowledge, which is why it’s often referred to as a drive-by-download. 

Types of Ransomware

There are countless ransomware variants that can hijack your files and issue a ransom demand, but nearly all fall under the following categories: 

Scareware

Scareware uses alarming messages to trick people into downloading malware, which is usually disguised as anti-malware or antivirus software. The fake antivirus will perform a fake scan and offer fake security warnings that read along the lines of “Your computer is slow. Speed it up” or “Your IP can be spotted by attackers; secure it quickly.” By taking the bait, users will be asked to pay to have the threats removed. Legitimate antivirus software doesn’t charge for this service. 

Screen Lockers

These ransomware varieties lock users out of their computers. Users are frequently only permitted to view the lock screen or interact with a screen that displays the ransom demand. Your keyboard and mouse will retain partial functions so that you may pay the attacker. Lockers typically just block users from accessing the infected system; some of them don’t even encrypt data. To get the victim to pay up, a timer with a deadline would be presented.

Crypto Ransomware

Crypto ransomware types, such as the infamous Cryptolocker, use asymmetric encryption to encrypt the data on your hard drive and demand payment in exchange for a decryptor key. One of the reasons why this type of cyber threat is so dangerous is that no security software or system restore could restore your now-encrypted data. 

Unfortunately, even after you’ve paid the ransom, there’s no guarantee that your files will be returned to you. 

Avoiding Ransomware

When it comes to cyber security and ransomware, an ounce of prevention is worth a pound of cure, so it’s best to prevent ransomware in the first place. There are ways to fight ransomware, but the methodology is flawed and requires more technical skill than the ordinary computer user has. 

The best possible approach is to invest in cybersecurity software with real-time protection, such as Rublon, to thwart ransomware threats. Look for measures that protect vulnerable programs from threats (anti-exploit technology) and prohibit ransomware from locking files (an anti-ransomware component).

Next, create regular secure backups of your data. High-level encryption and multi-factor authentication are recommended for cloud storage. You can purchase USBs or an external hard drive to preserve fresh or updated files. Just be cautious about disconnecting them after backing up, or they could become infected with ransomware. 

Keeping your operating system up to date is also highly recommended. WannaCry exploited a Microsoft vulnerability. Microsoft actually provided a patch for the security flaw in March 2017, but many people didn’t install it. 

And lastly, stay informed. Social engineering is a typical strategy to spread ransomware. Educate yourself (and your employees if you’re a business owner) on how to spot fraud. Be sensible; if something is suspicious, it probably is. 

Summary

Prevent ransomware attacks and enable trusted user access to networks, servers, and applications through multi-factor authentication and single sign-on. Start Free Trial with Rublon today!

Filed Under: Blog

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