Ransomware

What is Ransomware?

Ransomware is a type of malicious software designed to encrypt a victim’s files or systems, rendering them inaccessible until a ransom is paid. The attacker typically demands payment — often in cryptocurrency — in exchange for a decryption key or tool. Some ransomware variants also steal data and threaten to leak it publicly if payment is not received, adding a layer of extortion to the attack.

Ransomware attacks target individuals, businesses, critical infrastructure, and governments. These attacks are often delivered via phishing emails, compromised remote desktop protocol (RDP) services, software vulnerabilities, or supply chain compromises.

Why Ransomware is Such a Threat

Ransomware is one of the most damaging and disruptive cyberthreats facing organizations today. It not only halts business operations by encrypting essential data and systems but also introduces significant financial and reputational risks. The ransom demands can be steep, and even when paid, there's no guarantee of data recovery or security.

For businesses, the consequences go far beyond a temporary outage. Ransomware can lead to:

• Revenue loss from downtime
• Reputational damage
• Regulatory fines
• Data loss or exposure
• Increased cybersecurity insurance premiums
• Long-term erosion of customer trust

As attackers evolve their tactics — including double and triple extortion — organizations must shift from reactive recovery to proactive resilience.

How Ransomware Works

Ransomware follows a multistage process, starting with system access and ending in file encryption and ransom demands. Attackers often spend time in the environment before deploying the ransomware payload.  

Key stages in a ransomware attack typically include:

• Initial access: Gained through phishing emails, brute-force attacks on RDP, unpatched vulnerabilities, or infected software. ‍
• Reconnaissance and lateral movement: The attacker maps the environment, escalates privileges, and seeks out valuable systems and data. ‍
• Payload deployment: The ransomware is executed to encrypt data across endpoints, servers, and backups — sometimes during off-hours — to reduce response time. ‍
• Ransom notes and extortion: Victims receive instructions for payment. Some variants also threaten to publish or auction stolen data if demands are not met. ‍
• Communication and negotiation: Threat actors may open a dialogue via encrypted messaging platforms or dark web portals, offering to “prove” data decryption in exchange for partial payment.

Modern ransomware strains are often modular, enabling attackers to customize payloads based on the victim’s infrastructure. Many operate as part of ransomware as a service (RaaS) models, where developers license their code to affiliates in exchange for a cut of the profits.

Challenges Posed by Ransomware

Ransomware represents the intersection of technical sophistication, criminal economics, and human vulnerability. It tests every layer of a cybersecurity program — from email filtering and access controls to endpoint protection, incident response, and backup strategy.

The threat is particularly challenging because:

• Attackers constantly adapt to bypass defenses
• Dwell time before payload deployment can be lengthy
• Encryption can render both production and backup data useless
• Payment does not guarantee data recovery
• Regulatory bodies may restrict or discourage ransom payments

Defending against ransomware requires layered security, rapid detection, user awareness, and a mature incident response plan. As ransomware actors expand their tactics to include data theft and public shaming, cybersecurity teams must build resilience against both technical and reputational fallout.

Real-World Examples of Ransomware

• Healthcare disruption: A ransomware attack crippled a hospital’s systems, forcing staff to revert to paper records and delaying patient care. The attackers demanded millions to restore access to encrypted medical data. ‍
• Municipal shutdowns: A city government experienced a ransomware attack that locked down payroll, public services, and emergency response systems. The city refused to pay, initiating a costly months-long recovery process. ‍
• Supply chain impact: An attack on a major software vendor spread ransomware to thousands of customers downstream. Businesses faced operational paralysis, and some were forced to shut down temporarily. ‍
• Double extortion in finance: A bank was hit with ransomware that encrypted its systems and simultaneously exfiltrated sensitive client data. Attackers threatened to publish the data unless a ransom was paid. ‍
• Manufacturing halt: A global manufacturer was locked out of industrial control systems. Production halte across multiple plants, resulting in lost revenue and delayed shipments.

Key Takeaways

Ransomware is a highly disruptive form of cyberattack that encrypts critical systems and demands payment for recovery. It can cripple operations, expose sensitive data, and inflict long-term damage on brand and trust. Businesses must prepare for ransomware with a layered defense strategy that includes threat intelligence, behavior analysis, and automated response.  

Ready to see how Anomali can help your organization fight ransomware? Request a demo.

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