In recent years, ransomware attacks have grown at an alarming rate, affecting companies of all sizes and sectors. A Check Point study showed that, since the beginning of 2021, Brazil has seen a 92% increase in ransomware attacks, reflecting a global trend, with a 41% growth in the number of incidents worldwide in the same period.
In addition, Microsoft revealed that, in Brazil alone, these intrusions resulted in losses estimated at R$32.4 billion, placing the country among the four most affected by these cybercrimes.
Another worrying figure comes from Verizon, which points out that 82% of data breaches involve some kind of human error, often resulting from phishing or malware attacks. Even so, many businesses still don’t treat cyber security as a priority.
According to Direct Line Group, only 26% of small business professionals place cybersecurity as one of their main concerns, while 17% do not consider this issue a priority in their organizations.
These figures highlight the importance of a proactive approach to protecting company data. Read on to understand how ransomware attacks work, their impact and the best practices for protecting your business.
What is a ransomware attack?
A ransomware attack is a type of cyberattack in which a victim’s data is hijacked using malicious software, or malware. This malware encrypts the victim’s data, blocking access until a ransom is paid, usually in cryptocurrencies, making it difficult for the criminals to trace.
Ransomware can infiltrate the system in various ways, but the most common is through phishing, where fraudulent emails or malicious links trick users into downloading the malware. Once installed, ransomware spreads quickly, encrypting critical files and making it impossible for the company to access its data.
What happens in a ransomware attack?
The ransomware attack follows a pattern that usually involves four main steps:
- Infiltration: malware enters the system by phishing or exploiting software vulnerabilities;
- Lateral movement: the malware spreads across the network, aiming to reach as many devices as possible;
- Encryption: files are encrypted, making them inaccessible without a decryption key;
- Ransom demand: criminals demand payment of a ransom, promising to provide the decryption key in return.
These attacks can be devastating, and data recovery does not always occur, even if the ransom is paid.
How do ransomware attacks harm companies?
The impact of a ransomware attack on companies can be catastrophic. In addition to interrupting operations, the attack can lead to significant financial losses, loss of reputation and possible legal penalties, especially in relation to the General Data Protection Act (LGPD).
1. Direct and indirect costs
Companies hit by ransomware face direct costs, such as paying the ransom, which can be extremely high. The case of JBS, which paid 11 million dollars to release its data, is an extreme example, but even small and medium-sized businesses can suffer huge financial losses.
In addition, there is the indirect cost of interrupted operations. When critical systems are affected, the company can be offline for days or even weeks, resulting in lost revenue and productivity.
2. Damage to reputation
Another devastating consequence of a ransomware attack is the impact on a company’s reputation. Customers can lose confidence in the organization’s ability to protect their data, resulting in a loss of business and future contracts.
3. Legal penalties
The LGPD imposes severe fines on companies that fail to adequately protect their customers’ data. If a ransomware attack results in personal information being leaked, the company can be fined up to 2% of its annual turnover, as well as being sued by the victims.
How can you protect your company against a ransomware attack?
Although there are no absolute guarantees that a company will be 100% safe from ransomware attacks, some preventative measures can significantly reduce the risk of being hacked:
1. Regular data backup
One of the most effective ways to minimize the impact of a ransomware attack is to have a solid data backup plan. Keeping up-to-date backup copies stored outside the main network (off-site or in the cloud) ensures that, in the event of an attack, data can be restored without the need to pay a ransom.
2. Data security policies
Establishing internal security policies that include good practices in the use of emails, external links and unknown software is essential. Continuous training of employees to identify phishing emails and suspicious behavior can help prevent malware from entering the system.
3. Regular software updates
Keeping operating systems and software up to date is one of the best ways to protect your network from known vulnerabilities. Many intrusions happen through security flaws in outdated software. Installing all patches and updates regularly reduces the risk of exploitation by cybercriminals.
4. Firewalls and multi-factor authentication (MFA)
Implementing firewalls and multi-factor authentication (MFA) are additional layers of protection that make unauthorized access to the system more difficult. MFA, in particular, requires several forms of authentication, making it more difficult for hackers to break into the network with stolen credentials alone.
5. Continuous monitoring and security audits
Carrying out regular security audits and constantly monitoring network activity can help identify signs of a ransomware attack at an early stage, before it causes serious damage.
Digital Recovery can help
Facing a ransomware attack is a complex task and requires specialized expertise. Digital Recovery is a leader in data recovery with over 25 years’ experience. Our experts use advanced technologies to recover data from ransomware attacks, guaranteeing maximum security and protection for your company.
To learn more about how to deal with these threats, check out our article What to do after a ransomware attack and be prepared to protect your organization against future invasions.
