{"id":43935,"date":"2023-07-11T14:45:56","date_gmt":"2023-07-11T21:45:56","guid":{"rendered":"https:\/\/tpx2025.wpenginepowered.com\/?page_id=43935"},"modified":"2026-01-29T10:24:13","modified_gmt":"2026-01-29T15:24:13","slug":"what-is-ransomware","status":"publish","type":"page","link":"https:\/\/www.tpx.com\/learn\/what-is-ransomware\/","title":{"rendered":"What Is Ransomware? Understanding the Impact on Cybersecurity"},"content":{"rendered":"\t\t
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What Is Ransomware? Understanding the Impact on Cybersecurity<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Ransomware Topics<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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During the first half of 2022 alone, there were 236.1 million<\/a> ransomware attacks. That\u2019s significantly more than the total number of yearly attacks in all of 2017, 2018, and 2019. Considering the statistics, it\u2019s no surprise that many companies are trying to bolster their ransomware defenses. The first step in protecting yourself from ransomware is understanding what it is, how it works, what it looks like, its impact, and how to prevent and handle it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What is Ransomware?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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What does ransomware mean? In our Ransomware Guide<\/a>, we define ransomware as a type of malware in which the data on a target device is locked via encryption and a ransomware payment is demanded before the data is decrypted and access is returned to the victim.<\/p>

Ransomware is a specific kind of malware that takes control of one or more computers on a network and prevents users from accessing key systems until they pay a ransom to the attacker. In most cases, attackers request payment via cryptocurrency, which makes it far more difficult to use the payment system to track the attacker down.<\/p>

In today\u2019s hyper-connected world, no device is completely safe from a ransomware attack. Not only can cybercriminals target a laptop, desktop, or server, but they can also use these and mobile devices to access then encrypt sensitive areas of your network.<\/p>

Often, the term \u201cransomware\u201d refers to everything included in a ransomware attack, but these attacks very frequently involve other types of malware as well. For example, it\u2019s common for a company to first get hit with malware that steals their data and later suffer from a ransomware attack. This way, cyber criminals can use the stolen data as leverage, threatening to release or sell it if the victims don\u2019t pay the ransom in a timely fashion.<\/p>

History of Ransomware<\/span><\/h3>

In the first ransomware attack, dubbed the AIDS Trojan, the criminals asked for a whopping $567<\/a>, broken down into one payment of $189 and another of $378. In comparison to now, those were the good ol\u2019 days. Now, cybercriminals extort hundreds of thousands \u2014 or millions \u2014 of dollars each time they strike.<\/p>

The good news is you can drastically reduce your chances of being victimized by a ransomware assault. The first step is to understand how ransomware works and how to recover from it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Recommended Reading<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tTo prevent and manage these kinds of attacks, it\u2019s important to deeply understand how ransomware works<\/a>. Check out the linked whitepaper and guide to learn more.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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How Does Ransomware Work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A ransomware attack consists of multiple phases, starting with the introduction of malware into your system. Once a criminal gets the malware to its target, it proceeds to encrypt your valuable data. Encryption involves turning data into a series of jumbled, nonsensical characters. This results in an unintelligible mess that\u2019s useless to anyone without the decryption code.<\/p>

Hackers can also use encryption to lock someone out of an important area of their computer or network. For example, there could be a server that a company uses to store customer information or host their website or a business-critical application. By encrypting this area of their target\u2019s network, a ransomware attacker forces their business to come to a screeching halt.<\/p>

At this point, the hacker hopes a desire to get back up and running is enough to motivate the victim to pay a ransom. So they make a dubious promise to restore things to normal if the victim pays a ransom, typically using cryptocurrency. Hackers like to use crypto to accept ransomware payments because the identity of the person receiving the funds is kept secret, thanks to the anonymous nature of blockchain transactions.<\/p>

If the victim pays the ransom, there\u2019s a chance they\u2019ll get control of their systems back. But this doesn\u2019t mean the criminal will come through on their promise. The truism, \u201cThere\u2019s no honor among thieves,\u201d has proven soberingly true on multiple occasions as attackers collect the ransom money and then just split.<\/p>

If the victim pays the ransom, there\u2019s a chance they\u2019ll get control of their systems back. But this doesn\u2019t mean the criminal will come through on their promise. <\/p>

It\u2019s important to keep in mind that there\u2019s no guarantee that, even if you pay the ransom, the hacker will give you the decryption key you need. The truism, \u201cThere\u2019s no honor among thieves,\u201d has proven soberingly true on multiple occasions as attackers collect the ransom money and then just split. Having a backup solution provides businesses options. They can isolate infected systems and use point-in-time rollbacks to restore data prior to the attack.<\/p>

Modern, More Sophisticated Ransomware Attacks<\/h3>

While all ransomware tends to involve the above phases, malware infection, encryption, and a demand for money, this attack vector has evolved in recent years. To better motivate their victims, ransomware attackers may also leverage data leaks.<\/p>

A data leak in the context of ransomware involves the attackers publishing data online that they claimed they were going to use as leverage against their victims. For instance, an attack may go like this:<\/p>

  1. The victim company gets a message on one or more computers saying their system has been encrypted and locked. Unless the business pays a full ransom of $1.3 million within 24 hours, the attackers will release the identities, addresses, and payment information of all the company\u2019s clients.<\/li>
  2. The target company tries to buy time by telling the attackers that it may take a little longer than that to get the $1.3 million they demanded. In the meantime, the company gets cybersecurity experts and the FBI involved.<\/li>
  3. As soon as 24 hours have gone by, the hackers release the names and payment data of 100 of the company\u2019s customers. This is to show that they\u2019re serious and spark a flame of fear in the hearts of the organization\u2019s decision-makers. They would then continue to fan that flame by making more threats or releasing more data.<\/li><\/ol>

    At this point, the target company has some tough decisions to make. To regain control of their systems, they must trust the criminals will be true to their word and give the money they ask for \u2014 or a portion of it. On the other hand, they can continue to delay, hoping cybersecurity specialists can find or devise a decryption tool that could free up their system from the grip of the attacker\u2019s encryption.<\/p>

    Another option is simply not to cooperate. Some companies choose not to give in because it would either be too expensive or embarrassing, or they don\u2019t want to encourage more attacks in the future. Regardless of the decision they make, there\u2019s an element of risk.<\/p>

    To mitigate this risk, some companies get a cybersecurity rider on their business insurance policy that covers ransomware attacks. Many criminals target companies with this kind of insurance, knowing their out-of-pocket cash investment will be minimal because the insurer will reimburse its client.<\/p>

    What Are Triggers of Ransomware?<\/h3>

    Ransomware will enter a target system through multiple pathways that organizations need to be on the lookout for, including:<\/p>