Ransomware Explained: How It Works And How To Prevent It

Ransomware is a subcategory of malware that limits a computer system’s access or encrypts files in exchange for payment. This can greatly affect both people and enterprises and become a major reason for data loss, financial and business risks, and damage to reputation. Ransomware attacks have evolved in the last few years, so it is essential to know how ransomware is developed, the various forms, and how organizations can stay safe from them.

What is Ransomware?

Ransomware is a form of malicious software that prevents computer users from accessing their data by encrypting it. Cybercriminals use it to ransom money from individuals or organizations whose data they have hacked, and they hold the data hostage until the ransom is paid. If the cybercriminals do not pay the ransom within the specified time frame, the data may leak to the public or be permanently damaged. One of the most serious issues that businesses face is ransomware.

Businesses, individuals, and government organizations have all been victims of ransomware attacks since the mid-2000s, with the recovery of their systems costing large sums of money.

How Does a Computer Get Infected With Ransomware?

One of the most commonly used tactics is phishing. Attackers spread malicious content using email, social media, advertisements, and website pop-ups, among other methods. Let's take some of these: 

• Email Phishing: Cybercriminals use this approach to distribute ransomware all the time. Emails are carefully constructed to mislead the victim into clicking a link or opening an attachment. The malicious file that attacks the system is contained in the link or attachment, and when clicked, it will gain access to system files and data. When malware infects a computer, it encrypts the files and, in some circumstances, locks down the machine's owner or users. Other systems (computers and servers) connected to the network will be infected with more sophisticated ransomware.

• Website Pop-ups: When you click on malicious pop-ups on random websites, ransomware can infect your machine. Despite the fact that not all website pop-ups are malicious, hackers use them to extort money from their victims. Pop-ups from ransomware attackers often prompt you to update a program on your computer or make you believe that your system is infected with malware and that you need to click a link to remove it.

• Remote Control Desktop: Remote Control Desktop was designed to allow IT managers to access machines remotely for work purposes. Despite the fact that it was set up with good intentions, hackers have turned it into a money-making scheme. Port 3389 is used for desktop control. Since port 3389 is open on many systems, hackers can gain access to systems they identify as vulnerable. They will gain access by trying to log in as administrators using brute-force attacks. Cyber ​​criminals will have full access to the computer and will be able to encrypt any data as soon as they become an administrator. Some cybercriminals go even further, disabling endpoint protection or destroying Windows file backups.

• Drive-By Downloads: This method of compromising a user's machine occurs without the user's knowledge- ransomware attacks occur when a user visits a hacked website. The user does not need to click on anything before the virus spreads. Drive-by downloads on legal websites are commonly used by cybercriminals, especially if the website is susceptible. On the other hand, other cybercriminals create a website instead of breaking into one. When a visitor accesses an actual website that has been infected with malware, they will be redirected to another site that cybercriminals completely control. Once the user's PC is hacked, a ransom letter will appear requesting money for system unblocking and file decryption.

How to Stop Ransomware?

• Avoid Unverified Links: If you want to be safe, this is important. Don't open emails from unknown senders or those you haven't subscribed to. Also, stay away from unknown websites.

• Frequently Update Your Operating System and Software: Keeping your operating system and software up to date can prevent ransomware. If you update to the latest security fixes, you will benefit from having them. This will result in cybercriminals having a harder time finding vulnerable software.

• Make a System Backup: If your data is lost or compromised, having a system backup can save you a lot of pain. Have it backed up both locally and in the cloud. This is a simple way to ensure that cybercriminals don't get over your personal information. If your machine is infected with a ransomware virus, the backup will allow you to restore the system. Then, using your updated backup data, you can fix it. Backing up your data in the cloud adds an extra layer of security.

• Restrict Access To Your Data: This is accomplished by network isolation, which is important in the face of various cyber threats. Hackers are unable to gain easy access to data even when access is restricted. In the case of a ransomware virus attack, an isolating network protects the data.

• Disable vulnerable plug-ins: Hackers can easily damage your system by using plug-ins like Flash. They can use them to infect your machine and launch an attack. It exposes all your information which can be used to extort money from you. Keeping your plug-ins up to date is important to keep your system safe from virus attacks.

• File Extensions: From reputable sources, all documents/files must have the appropriate viewable file extensions. It is important to keep the system secure from downloading irrelevant documents from unknown sources.

• In the Workplace, Ransomware Awareness: Most ransomware virus attacks are caused by human errors. The answer is to ensure that workers are aware of the problem and are adequately trained to prevent and respond to it. Employees should be informed about the many hacking tips available. They should be aware that clicking on unfamiliar links or viewing harmful information can have serious consequences. All links and attachments should be double-checked and the source should be thoroughly checked before access. Furthermore, ransomware virus attacks can take many different forms. Phishing is only one of many types of attacks. Employees working from home must be connected to the public or open Wi-Fi. Hackers can easily gain access to these and launch attacks on your machine.

• Create Strong Passwords: Weak passwords are very easy to crack. When creating a password, don't include information that's easily available, such as your date of birth. If you use the same password for all your accounts, then hackers can gain access to your system. Finally, when creating passwords, avoid using easily accessible information. Some passwords contain information that can be easily obtained through the victim's social media accounts. These are vulnerable, and even a novice hacker will be able to detect them in no time. As a result, businesses and institutions must implement a strong password policy to keep hackers out.

How Does Ransomware Work?

Ransomware operates more or less through a specific cycle before the targeted user is fully aware that they have been diagnosed with a malware infection.

Here's a breakdown of the common stages:

• Infection: The primary attack vector is believed to occur through phishing emails and other lures, links, drive-by downloads, and compromised software. Targeted users install the ransomware into their system without their knowledge.
• Execution: After installation of the malware, the program then delivers a payload that circulates the system, searching for files of value and then encrypting them with nearly uncrackable security encryption.
• Encryption: Files are protected with the key known only by the violator. The victims will receive a message or a warning that the attackers want to get a ransom in exchange for the decryption key.
• Ransom Demand: The attacker shows the victim how the ransom is to be paid, the usual from being anonymous form of currency being bitcoins.
• Decryption (If Ransom Is Paid): If the victim agrees to pay, this sends the decryption key to the attackers, but data retrievals may not be recovered.

What Are the Different Types of Ransomware?

There are various types of ransomware, each with different tactics:

• Crypto Ransomware: This type infects files on the victims’ system and then request for payment for the key that would decrypt the files. It is widely employed by the attackers because of its high level of encryption.
• Locker Ransomware: Unlike some other cyber threats that encrypt files, locker ransomware leaves the user with no access to their device or any of its functions, unless the ransom is paid.
• Scareware: Some of them pretend to have infected your PC and ask you to pay to get the ‘problem’ solved, despite the fact there may actually be no problem.
• Ransomware as a Service (RaaS): It is a business model adapted by cyber criminals that allow outsourcing of ransomware to other cyber criminals who are paid some commission on any extraction of ransoms.
• Doxware (Extortionware): Criminals using their knowledge to extort money from the victim by stating that they will expose a variety of new information if the ransom is not met.

What Are the Effects of Ransomware on Businesses?

Ransomware can have devastating effects on businesses, including:

• Financial Loss: Of course, the actual payment of the ransom has a cost, but businesses will also face costs on account of downtime, lost production, and recovery.
• Data Loss: If such backup systems are not well established, then businesses could lose such information forever.
• Reputation Damage: Consumers may also cease to believe in a business who has been a victim of ransomware attack thus resulting to a bad image.
• Legal Liabilities: As for the types of data, some companies may find themselves sued or fined for the customers’ sensitive data leakage.
• Operational Disruptions: During an attack, business operations are freezed therefore, projects take longer time to complete, and business earnings are lost.

History of Ransomware and Famous Ransomware Attacks

Ransomware has been around for over two decades, evolving in sophistication:

1. The AIDS Trojan (1989): It was one of the oldest ransomware malware that sought to function by presenting a message that required users to pay money in order to obtain a code that would unlock the files.

2. CryptoLocker (2013): One popular ransomware that emerged from spam campaigns, and the more unique way, it demanded money in bitcoins.

3. WannaCry (2017): A coordinated ransomware attack across the world which targeted more than 230000 computers in more than 150 countries. It targeted a weakness in the Operating Systems of Microsoft, disrupting operations of organizations such as the NHS in the United Kingdom.

4. Petya (2016 and 2017): Petya was unique because contrary to what typical ransomware does, it encrypted all the hard drive files. Its variant, NotPetya, was even more devastating and much of it is assumed to be state sponsored.

How to Find Out When Ransomware is Attacking?

Early detection of ransomware attacks is key to minimizing damage:

1. Unusual File Activity: Any new extensions added at the end of the file names, a huge number of files that do not exist before, or files that are locked and encrypted, are signs of ransomware at work.

2. Slow System Performance: If applications become unresponsive, or more specifically, if systems become gradually slower, ransomware may already be active in the background.

3. Unexpected Ransom Demands: Having a ransom note displayed on your screen is an obvious indicator and more often than not, you’re way past this point.

4. Security Alerts: Firewalls or antivirus software or IDS may notify users of certain activities on the system which may be a pointer to ransomware.

How to Stop a Ransomware Attack?

Preventing ransomware attacks requires proactive measures, including:

1. Regular Backups: Run the backups on a normal basis for important information to another device, preferably off the network. This makes it possible to regain the data without having to pay the hackers’ ransom.

2. Security Software: Employ up to date antivirus and anti malware to identify and prevent ransomware from penetrating into your systems.

3. User Training: Inform work place workers on email phishing scams, links on sites that seem suspicious to downloading software from unknown sources.

4. Patch Management: Never allow any software or system to be run without installing necessary security patches and updates.

5. Network Segmentation: Segment networks to limit the spread of ransomware if one section is compromised.

Conclusion

Of all cyber threats, ransomware attacks are perhaps the most disruptive to any company and individual. If you know how ransomware functions, the various types, and control/countermeasures, then you would be better equipped not to be a victim of ransomware.