Why are Ransomware Attacks on the Rise?

What is Ransomware?

Ransomware is a type of malicious software designed to block access to data or systems until a ransom is paid. Attackers often use encryption to lock files, demanding payment for decryption keys.;

There are two main types of ransomware:

• Crypto Ransomware: This type encrypts files on the victim's system, making them inaccessible. The attacker demands a ransom payment for the decryption key.
• Locker Ransomware: This type locks the victim out of their entire system, preventing them from accessing any files or applications. The attacker demands a ransom payment to unlock the system.

The Rising Trend in Ransomware Attacks in India

The ransomware landscape in India has evolved significantly, with 64% of organisations reporting attacks in 2024, down from 73% the previous year. However, the severity of these attacks has intensified, leading to higher ransom demands. Around 65% of Indian firms affected by ransomware opted to pay the ransom, with an average payment of $4.8 million. Data recovery costs reached $1.35 million on average. Industries across healthcare, financial services, and manufacturing continue to face growing threats.

Source: Business Standard

Examples of High-Profile Ransomware Incidents;

The severity of the ransomware threat is further amplified by recent high-profile attacks that have disrupted critical services and exposed vulnerabilities across various sectors. Some notable incidents include:

• A Premier Medical Institution Attack: India's leading medical institution fell victim to a ransomware attack that caused server shutdowns and disrupted healthcare services. The potential compromise of patient data highlighted the grave consequences of cyberattacks on the healthcare sector.
• A Non-Banking Financial Company Attack: The LockBit 3.0 ransomware group targeted an NBFC, claiming to have exfiltrated over 600 GB of sensitive data. The attackers demanded a ransom of approximately INR 24 crores, emphasizing the financial implications of these attacks.
• A Major Container Terminal Attack: This attack on India's largest container terminal disrupted operations, forcing the terminal to turn away ships. This incident underscored the potential for ransomware to disrupt critical infrastructure and supply chains.
• A Power Company Attack: A power company in Haryana suffered a ransomware attack that resulted in the theft of customer billing data. The attackers demanded a ransom of INR 1 crore, highlighting the vulnerability of critical infrastructure to cyberattacks.

Sources: Livemint, ET CISO, Ship Technology, SRIRAM’s IAS

Industries Most Affected by Ransomware Attacks

While no sector is immune to ransomware attacks, certain industries in India have emerged as prime targets due to the sensitive nature of the data they handle and their potential for significant disruption. These include:

• Healthcare: Hospitals and healthcare providers are particularly vulnerable due to the critical nature of patient data and the potential for life-threatening consequences if systems are compromised.
• Government and Public Sector: Government agencies and public sector organisations are attractive targets due to the vast amounts of sensitive data they hold and the potential for widespread disruption of public services.
• Financial Services: Banks, financial institutions, and insurance companies are prime targets due to the financial implications of a successful attack and the potential for significant financial losses.
• IT and Technology: IT companies and technology providers are often targeted due to their reliance on digital infrastructure and the potential for widespread disruption if their systems are compromised.
• Manufacturing and Critical Infrastructure: Manufacturing companies and critical infrastructure providers, such as power plants and transportation networks, are vulnerable due to the potential for operational disruptions and safety risks.

Related: Ransomware Risks You Need to Know

Key Factors Contributing to the Increase in Ransomware Attacks

Several factors have contributed to the surge in ransomware attacks:

• Sophistication of Attackers: Cybercriminals are constantly evolving their tactics and techniques, using advanced tools and techniques to evade detection and maximise the impact of their attacks.
• Remote Work Vulnerabilities: The shift to remote work has expanded the attack surface for cybercriminals, as employees often access sensitive data and systems from less secure home networks.
• Ransomware-as-a-Service (RaaS): The rise of RaaS has made it easier for aspiring cybercriminals to launch ransomware attacks, as they can purchase pre-built ransomware kits and infrastructure from experienced attackers.
• Cryptocurrency and Anonymity: The use of cryptocurrency facilitates ransom payments, as it offers a degree of anonymity and makes it difficult to trace the funds back to the attackers.
• Lack of Cybersecurity Awareness: Many businesses and individuals lack sufficient cybersecurity awareness and fail to implement basic security measures, making them easy targets for ransomware attacks.

Related: 13 Ways to Protect Yourself from Cyber Crime

The Economic and Social Impact of Ransomware Attacks

Ransomware attacks have a devastating economic and social impact:

• Financial Losses: The cost of recovering from a ransomware attack can be substantial, including ransom payments, data recovery expenses, lost productivity, and legal fees.
• Disruption of Critical Services: Attacks on critical infrastructure, such as healthcare systems and power grids, can disrupt essential services and jeopardise public safety.
• Long-Term Damage: Ransomware attacks can cause long-term damage to an organisation's reputation and erode customer trust.

How Can Organisations Defend Against the Escalating Risk of Ransomware Attacks?

Here are some essential steps organisations can take to protect themselves from ransomware attacks:

• Robust Cybersecurity Measures: Implement strong security measures, including regular backups, data encryption, multi-factor authentication, and network segmentation.
• Employee Training and Awareness: Educate employees about the risks of ransomware and train them on how to recognise and avoid phishing scams and other social engineering attacks.
  
  
• Incident Response Planning: Develop and test an incident response plan to ensure a swift and effective response in the event of a ransomware attack.
  
  
• Cyber insurance: Ransomware attacks can lead to significant financial losses, making cyber insurance a critical safeguard for any organization. It provides protection against the cost of data breaches, system recovery, and potential legal expenses. To fully understand the nuances of cyber insurance and the types of policies available, it’s essential to consult with experts.

Alternatively, you can also reach out to our team at Policybazaar for Business, where specialists can evaluate your business risks and provide tailored solutions for complete protection.

Conclusion

The rising tide of ransomware attacks in India underscores the urgent need for proactive cybersecurity measures. Businesses and individuals alike must remain vigilant, implement robust security practices, and consider risk mitigation options like cyber security insurance. Take the first step towards safeguarding your digital assets today, visit Policybazaar for Business to explore cyber insurance options and consult with an expert to ensure you have a comprehensive defence strategy in place.