With its rise in prominence over the last decade, ransomware has evolved from simple “pay-to-unlock” schemes into highly coordinated attacks that target everything from personal files to business infrastructure. Its notorious ability to exploit human and system vulnerabilities has made it one of the top concerns in cybersecurity today.

What is Ransomware?

Ransomware is a type of malware that will infect your devices, be it your company’s or your personal laptops. The moment ransomware enters your system, it usually seeks out specific files or entire directories (like documents, images, databases) and encrypts them using strong encryption algorithms.

Some ransomware variants may even try to delete or disable shadow copies (backup versions of your files) that Windows automatically creates. This prevents users from easily restoring previous, unencrypted versions of their files using built-in recovery tools.

After encryption, the attacker would then demand payment (often in cryptocurrency) in exchange for a decryption key that can unlock the encrypted files.

Why is Ransomware a serious threat?

• Loss of important files/data: Ransomware can encrypt files, and if no backups are available, these files may be permanently lost. Businesses might lose critical financial records, contracts, or customer data, while individuals could lose irreplaceable photos, personal documents, or important emails.
• Financial Burden: Attackers demand ransoms to restore access to encrypted data, with amounts ranging from hundreds for personal users to millions for larger enterprises. However, paying the ransom does not always guarantee that the files will be recovered or restored.
• Business Disruption: Ransomware doesn’t only target individuals; it can cripple entire businesses, hospitals, and educational institutions. The aftermath can include organizations being unable to access critical information, such as hospitals losing access to patient records or companies facing extended shutdowns.

What the Data Tells Us

To fully grasp the scale of the impact of ransomware, let’s take a closer look at some of the statistics that we have gathered.

Research has shown that 3 in 5 businesses locally, or 64% of companies that are hit by ransomware, paid the ransom with many breaking their ‘do not pay’ policies. 33% of these companies paid at least US$500,000¹. Shook Lin & Bok, a local law firm, was also hit by a ransomware attack. The company allegedly paid US$1.4 million worth of bitcoin in ransom to the Akira Ransomware Group, though this figure has not been officially confirmed.

In CSA’s Singapore Cyber Landscape 2023 Report published on 30th July, it noted a record number of ransomware victims reported globally last year (2023), with a 49 per cent jump from 2022. Roughly 52 percent of incidents declared in the CSA report this year impacted small and medium-sized enterprises (SMEs)².

Fortunately, there are several steps you can take to protect yourself from becoming a victim of a ransomware attack.

How can you protect yourself from Ransomware?

Ransomware is a growing threat, but there are several key practices and technologies that can help protect your systems.

Regular Backups: Maintain regular backups of critical data, and ensure they are stored offline or in a secure location, so you can recover data without paying a ransom.

Update software regularly: Keep your operating system, applications, and security tools updated to patch vulnerabilities that ransomware could exploit.

User Training: Educate users to recognize phishing emails and suspicious attachments, which are common methods of delivering ransomware.

Endpoint Protection: Consider deploying advanced security solutions, such as Endpoint Detection and Response (EDR). EDR solutions provide real-time detection and analysis for unusual activity and helps respond swiftly to ransomware threats. EDR service providers all over the market offer powerful tools to detect, investigate, and mitigate attacks before they can cause significant damage.

Citation

¹ Koh, Fabian. “3 out of 5 Singaporean firms paid ransoms during cyberattacks in 2023: Survey” CNA, Updated 08 Aug. 2024, https://www.channelnewsasia.com/singapore/cybersecurity-ransom-cybercrime-csa-4504326.

² Boo, Krist. “Defying officials and experts, S’pore firms keep paying ransomware blackmail” The Straits Times, Updated 08 Aug. 2024, https://www.straitstimes.com/business/defying-officials-and-experts-s-pore-firms-keep-paying-ransomware-blackmail.