What Is a Ransomware Attack?
Ransomware attacks have become one of the most dangerous and costly forms of cybercrime. These incidents occur when hackers encrypt or lock a victim’s data and demand payment, usually in cryptocurrency, to restore access.
What began as a small-scale threat in the late 1980s has evolved into a global crisis affecting governments, healthcare systems, and enterprises of all sizes.
Understanding ransomware attacks is the first step toward effective protection. Today’s cybercriminals use sophisticated tools, social engineering, and even ransomware-as-a-service (RaaS) platforms to target vulnerable organizations. Beyond financial losses, these attacks disrupt operations, damage reputations, and compromise national security.
In this guide, we’ll break down how ransomware works, explore real-world examples, and explain how organizations can strengthen their defenses, especially through hardware-level protection with Sepio’s Asset Risk Management platform.
The Origins and Evolution of Ransomware
Ransomware isn’t new. The first known case occurred in 1989, when attackers mailed 20,000 infected floppy disks to attendees of the World Health Organization’s AIDS conference. The malware, known as the PS Cyborg Virus, encrypted victims’ files and demanded a $189 payment to a post office box in Panama.
Since then, ransomware has evolved dramatically. Modern attacks are more advanced, widespread, and expensive. According to Palo Alto Networks, the average ransom demand in 2020 was $312,493, a 171% increase from the previous year. The largest known ransom ever paid reached $10 million.
How Ransomware Attacks Work
Initial Infection: Ransomware typically enters a system through phishing emails, malicious links, or exploited software vulnerabilities.
Encryption and Lockdown: Once inside, the malware encrypts the victim’s files or entire systems, rendering them unusable. Attackers then demand payment in exchange for a decryption key.
Payment and Consequences: Victims often face the impossible choice between paying the ransom or losing critical data. Payments are usually made in cryptocurrency, making transactions difficult to trace.
Ransomware: A Modern Pandemic
Think COVID-19 was the only virus causing global disruption? Think again. Ransomware, often referred to as a cyber virus, spreads rapidly across networks and industries. Unlike biological viruses, you can’t stop ransomware with a lockdown.
These digital infections evolve over time, becoming more sophisticated with every variant. Attackers employ social engineering, phishing, and advanced persistence techniques to maximize impact. As UK NCSC Director Lindy Cameron stated, ransomware poses “the greatest cyber risk to individuals and organizations.”
The Scale of the Modern Ransomware Threat
Ransomware attacks are increasing in both frequency and complexity. According to Bitdefender’s 2020 Consumer Threat Landscape Report, such attacks surged by nearly 500% between 2019 and 2020.
Why? Because ransomware pays. Many organizations quietly pay the ransom to restore access, encouraging further attacks. Cyber insurance policies that cover ransom payments only add to the problem.
Meanwhile, the rise of ransomware-as-a-service (RaaS) has lowered the barrier to entry. Even individuals with minimal technical skills can now rent ready-made ransomware kits online.
Ransomware Attacks and National Security
The ransomware-as-a-service (RaaS) model has escalated the danger posed by ransomware attacks. Now, anyone, from solo hackers to organized crime groups and even state-backed attackers, can launch powerful ransomware campaigns. As a result, the damage is spreading faster and hitting harder. Critical sectors like healthcare, government, and energy are especially at risk. Attacks on these systems can cause real-world harm, not just digital disruption.
Ransomware attacks can hit Operational Technology (OT) systems, disrupting critical services. When attackers break into these systems, they disrupt the physical operations they manage, putting national security at risk. In many cases, hackers launch denial-of-service (DoS) attacks to shut down essential systems. At the same time, they may steal or destroy sensitive data.
Cybercriminals use smart tactics to break into systems. They often trick people through social-engineering, steal login details, and take advantage of software bugs. In many cases, these attacks start with a data breach. This adds pressure, making victims more likely to pay the ransom.
Common Ransomware Attack Methods
Hackers have multiple methods at their disposal to deliver ransomware:
| Attack | Infiltration |
| Phishing | Victim clicks on links to fake websites, or unknowingly download malicious files, both of which install the ransomware on the victim’s device. |
| RDP credentials | Attackers steal RDP credentials, which are often weak, and gain access to the server. Endpoint detection is bypassed, and the perpetrator can begin the attack. |
| Software vulnerability | Exploiting vulnerabilities provide attackers with an open door to the enterprise. Confidential data can be accessed and stolen, and ransomware can be injected. |
| Rogue devices | A lack of hardware security allows rogue devices to go undetected. By not raising any security alarms, the devices can quietly inject ransomware. |
Why Hardware Security Matters in Ransomware Defense
Many government and cyber security groups offer advice on how to reduce the risk of ransomware attacks. While helpful, these tips often overlook a key area: hardware security. Without strong protection at the hardware level, companies stay vulnerable to attacks that target physical devices. This gap leaves many organizations exposed to serious threats.
Without hardware security, the Physical Layer remains uncovered. Thus allowing Rogue Devices to go undetected as they operate on this layer. Spoofed Peripherals are manipulated on the Physical Layer and impersonate legitimate HIDs, being detected as such by endpoint security software. Network Implants go entirely undetected by network security solutions, including NAC. This is because they sit on the Physical Layer, which such solutions do not cover. Rogue Devices’ immunity to existing security measures means attackers can easily infiltrate a target without raising any alarms and, from here, inject malicious code.
How Sepio Helps Prevent Ransomware Attacks
Sepio’s Asset Risk Management (ARM) solution helps organizations gain full visibility into their hardware. It covers the Physical Layer, which is often left unprotected, and blocks hardware attacks.
As a leader in Rogue Device Mitigation (RDM), Sepio detects, identifies, and manages all connected devices. No device is left unchecked.
Sepio uses Physical Layer Fingerprinting and machine learning to create a digital fingerprint based on each device’s electrical signals. It then compares these fingerprints to known threats. This allows Sepio to spot risky or unknown devices and detect vulnerable switches across the network.
In addition to the deep visibility layer, a comprehensive policy enforcement mechanism recommends on best practice policy and allows the administrator to define a strict, or more granular, set of rules for the system to enforce. When a device breaches the pre-set policy, Sepio’s automatically instigates a mitigation process that instantly blocks unapproved or Rogue hardware.
Protect Your Organization Against Malware
Understanding ransomware and its methods is crucial for strengthening defenses. By combining full hardware security, threat intelligence, and solid cyber security practices, enterprises can better manage risks. As a result, they can protect their sensitive data from ransomware attacks more effectively.
Talk to an expert today to learn how Sepio’s patented technology can help you achieve complete asset visibility and secure your infrastructure from modern cyber threats.
