The Origin of Ransomware and Its Impact on Businesses

In previous articles we’ve mentioned how Ransomware has wreaked havoc, invading systems and putting organizations’ reputation and stability at stake. In this article, we’ll start with the basics and describe what ransomware is and how it is used by cybercriminals to attack tens of thousands of systems by taking advantage of system-vulnerabilities.

Ransomware is defined as a form of malicious software that is designed to restrict users from accessing their computers or files stored on computers till they pay a ransom to cybercriminals. Ransomware typically operates via the crypto virology mechanism, using symmetric as well as asymmetric encryption to prevent users from performing managed file transfer or accessing particular files or directories. Cybercriminals use ransomware to lock files from being used assuming that those files have extremely crucial information stored in them and the users are compelled to pay the ransom in order to regain access.

The Business Impacts can be worrisome

Ransomware can cause tremendous impacts that can disrupt business operations and lead to data loss. The impacts of ransomware attacks include:

• Loss or destruction of crucial information
• Business downtime
• Productivity loss
• Business disruption in the post-attack period
• Damage of hostage systems, data, and files
• Loss of reputation of the victimized company

You will be surprised to know that apart from the ransom, the cost of downtime due to restricted system access can bring major consequences. As a matter of fact, losses due to downtime may cost tens of thousands of dollars daily.

As ransomware continues to become more and more widespread, companies will need to revise their annual cybersecurity goals and focus on the appropriate implementation of ransomware resilience and recovery plans and commit adequate funds for cybersecurity resources in their IT budgets.