Ransomware: How to prevent attacks and protect your business

The evolution of ransomware poses a significant cybersecurity threat that can have devastating effects on businesses of all sizes. 

Executive Summary:

Ransomware is a significant cybersecurity threat that can have devastating effects on businesses of all sizes. Understanding the nature of ransomware, its evolution, and the types of attacks is crucial for developing effective prevention and mitigation strategies. This whitepaper provides a comprehensive overview of ransomware, its impact on businesses, and practical steps to protect against and respond to attacks.

Understanding Ransomware

Ransomware is malicious software that encrypts a victim’s data or blocks access to a computer system and demands a ransom to release it. Typically, hackers gain access through phishing, malicious websites, or exploiting software vulnerabilities. Once inside, it can quickly spread across networks, locking files and rendering them unusable.

The Evolution of Ransomware Attacks

Although the number of ransomware attacks has declined over the last number of years, total ransomware payments exceeded $1 billion for the first time in 2023.

Ransomware continues to be one of the most prevalent type of cybersecurity threat, with 59% of organizations being hit with an attack in the last year[1] according to Sophos’ “State of Ransomware” report.

Large companies or government departments are often high-profile victims of ransomware attacks. Examples of such attacks include the 2021 attack on the Irish Health Service Executive (HSE), which shut down its systems nationwide, affecting over 100,000 people whose data was stolen during the attack.

Italian luxury fashion brand Moncler was also targeted in 2021. The demand of $3 million was not paid, leading to a massive data leak on the dark web by the hackers.

Types of ransomware:

There is no one-size-fits-all solution when it comes to ransomware attacks. There are various strategies cybercriminals can use to target their victims, including:

1. Crypto Ransomware:
   • This encrypts files and data and demands a ransom payment for the decryption key.
2. Locker:
   • This locks a user out of their systems entirely. Unlike crypto ransomware, it does not encrypt the data but denies access to the system.
3. Double Extortion Ransomware:
   • This not only encrypts a company’s data but also exfiltrates it and threatens to leak it if the ransom is not paid.
4. Scareware:
   • Scareware scares a victim into paying a ransom by displaying fake information, such as warnings about viruses or system errors. It relies on psychological manipulation rather than actually encrypting data.

The threat against small businesses

Although attacks such as the examples above often make headlines, smaller businesses are disproportionately the targets of ransomware attacks. In 2023, ransomware attacks on SMBs and Enterprises increased to 46% globally[1], and these figures are expected to continue rising in 2024.

Smaller businesses are often more vulnerable to attacks due to several reasons, such as:

• Lack of adequate cybersecurity measures:
  Due to limited resources and stricter budgets, small businesses often lack robust cybersecurity infrastructure, leaving them more vulnerable to attacks.
• Larger attack surfaces:
  Because of limited preventative measures in place, there are more entry points for attackers to enter small businesses’ systems. Unmanaged devices, unpatched systems, and remote access vulnerabilities all play a role in expanding the attack surface.
• Attacks have become more sophisticated:
  Ransomware has evolved, meaning attacks are even more crippling for businesses. Not only has Ransomware-as-a-Service (RaaS) become more common, but tactics such as double and triple extortion have led to complex attacks.
• Insufficient cybersecurity awareness and training amongst employees:
  Small businesses often lack cybersecurity awareness and training among their employees, leaving them less likely to be able to recognize phishing emails, social engineering tactics, and other forms of cyber deception.

Impact of Ransomware on Business

Ransomware can have a crippling impact on businesses, especially small businesses. The four areas typically hit hardest are revenue, reputation, finances, and data.

• Revenue:
  One of the biggest risks of a ransomware attack is not the software itself but the operational impact it can have on day-to-day operations. Ransomware has the ability to completely shut down systems, leading to significant downtime and, therefore, lost revenue for the impacted business.
  
• Reputation:
  If a business is at the centre of an attack that becomes public, customers will no longer trust it, particularly if the company handles sensitive data such as personal information or credit card information.
  
• Financial:
  Not only will businesses incur the costs of the ransom itself, but the cost of recovery and backup of lost data and impacted systems can be significant, with ransoms often surpassing $1 million. This cost can be crippling to businesses, notably smaller businesses. In addition, non-compliance with security legislation can result in legal fees, fines, and penalties.
  
• Data Integrity:
  Loss or theft of sensitive data can have long-lasting impacts, including legal consequences and loss of intellectual property

Mitigating Ransomware Risks

Mitigating ransomware risks requires a multi-faceted approach encompassing technical measures, employee training, and proactive planning. Here are detailed strategies to protect your business:

• Backup & Recovery:
  • Implement a regular backup schedule to ensure that all critical data is copied to secure, off-site locations. This can include cloud-based backups or physical storage devices that are not connected to your main network.
  • Regularly test backup restorations to ensure that data can be recovered quickly and accurately in the event of an attack.
  • Maintain multiple versions of backups to protect against ransomware that might infect recent copies of data.
• Vulnerability management:
  • Ensure all software, including operating systems and applications, is regularly updated with the latest security patches. Vulnerabilities in outdated software are common entry points for ransomware.
  • Implement network security measures such as firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS) to monitor and block suspicious activities.
  • Use comprehensive endpoint security solutions that include antivirus, anti-malware, and anti-ransomware features to protect individual devices
• Access controls & monitoring:
  • Limit user access to only those resources necessary for their job roles to minimize the potential impact of compromised accounts.
  • Implement Multi-Factor Authentication (MFA) to add an extra layer of security to user logins, making it harder for attackers to gain access with stolen credentials.
  • Utilize security information and event management (SIEM) systems to continuously monitor network traffic and alert on suspicious activities in real time.
• Employee Training & Awareness:
  • Conduct regular cybersecurity training sessions to educate employees about the latest phishing tactics, social engineering schemes, and safe online practices.
  • Perform regular simulated phishing attacks to test and reinforce employees' ability to recognize and respond to phishing attempts.
  • Establish and communicate clear policies for handling suspicious emails, links, and attachments
• Incident Response Planning:
  • Create a comprehensive incident response plan that outlines roles, responsibilities, and procedures for responding to ransomware attacks.
  • Conduct regular incident response drills to ensure that all team members are familiar with their roles and can act quickly in the event of an attack.
  • Develop a communication strategy to keep all stakeholders informed during an incident, including employees, customers, and partners.

Incident Response and Recovery Strategies

A well-structured incident response plan is crucial for minimizing the damage from a ransomware attack and ensuring a swift recovery. Here are the key steps to include in your plan:

• Identify:
  • Detection: Use automated tools and continuous monitoring to detect ransomware infections as early as possible.
  • Initial Analysis: Conduct an initial analysis to understand the nature and scope of the attack, identifying which systems and data are affected.
• Contain:
  • Isolate Infected Systems: Quickly isolate infected systems from the network to prevent the ransomware from spreading to other devices.
  • Disconnect Networks: Temporarily disconnect affected networks or segments to contain the attack while maintaining communication through alternative means.
• Scope:
  • Assess Impact: Determine the full extent of the attack, including all affected systems, data, and services.
  • Identify Entry Point: Investigate how the ransomware entered the network to prevent future incidents.
  • Eradicate
  • Remove Ransomware: Use specialized tools and techniques to remove the ransomware from infected systems.
  • Clean Systems: Ensure all affected systems are thoroughly cleaned and any remaining malicious files or backdoors are eliminated.
• Recover:
  • Restore Data: Recover data from backups to restore normal operations as quickly as possible.
  • Verify Integrity: Verify the integrity of restored data and systems to ensure they are free of ransomware and other malware.
  • Rebuild Systems: Rebuild and reconfigure systems as necessary to strengthen security postures.
• Review:
  • Post-Incident Analysis: Conduct a thorough post-incident analysis to understand what happened, how it was handled, and what can be improved.
  • Update Plans: Update the incident response plan based on lessons learned to improve future responses.
  • Report Findings: Report findings to relevant stakeholders and, if necessary, to regulatory bodies to comply with legal and regulatory requirements.

Final Thoughts

Ransomware remains a significant threat to businesses of all sizes. By implementing robust cybersecurity measures, training employees, and having a well-prepared incident response plan, businesses can effectively mitigate the risks and recover swiftly from attacks. Investing in these proactive measures is crucial to safeguarding future of your business and maintaining trust with your customers and partners.

Our Knowledge Exchange Account Managers can help you every step of the way, connecting you to the most robust security providers to equip you with the tools you need to prevent and defend yourself from the damage of a potential attack. Get in touch to learn more.

[1] Sophos. (2024, April). The State of Ransomware 2024. Retrieved from sophos.com: https://assets.sophos.com/X24WTUEQ/at/9brgj5n44hqvgsp5f5bqcps/sophos-state-of-ransomware-2024-wp.pdf

[1] OpenText. (2023, November). OpenText Cybersecurity 2023 Global Ransomware Survey: The risk perception gap. Retrieved from opentext.com: https://blogs.opentext.com/opentext-cybersecurity-2023-global-ransomware-survey-the-risk-perception-gap/