What is Ransomware?

Ransomware isn’t just a buzzword, it’s a billion-dollar cybercrime industry. You’ve probably heard about big name victims in the news: the hospitals forced to turn away patients, city governments losing access to essential services, or global corporations paying millions just to restore access to their files.

But ransomware doesn’t just target the big players. In fact, small and mid-sized businesses are often hit the hardest, because they’re less likely to have the same level of cybersecurity defenses in place. So when an attack lands, it can bring operations to a standstill in minutes.

In this blog post, we’ll explain what ransomware is, how it works, the common types you should know, and how to reduce your risk. Along the way, we’ll include short videos and practical examples to bring the topic to life.

Ransomware is a type of malicious software (malware) designed to deny access to your data or systems until a ransom is paid.

Most commonly, it works by encrypting your files, effectively making them completely inaccessible to users and demanding a ransom (usually in cryptocurrency like Bitcoin so it’s more difficult to trace) in exchange for a decryption key.

And the twist? There’s no guarantee you’ll actually get your files back even if you pay.

Common Entry Points

Ransomware often gains access to systems through:

• Phishing emails – This is the most common method. Users are tricked into clicking a link or opening a malicious file.

• Compromised websites – Drive-by downloads can infect users who simply visit an unsafe site.

• Infected USB devices – Malware can easily spread via external hardware.

• Exposed services – Attackers can exploit vulnerable Remote Desktop Protocol (RDP) or VPN services to infiltrate your network.

Once inside, the ransomware spreads rapidly, locking files, disrupting operations, and demanding payment, often with a ticking countdown clock to pressure victims into paying up.

Most ransomware attacks follow a similar lifecycle, though the tactics used are evolving. Here’s a step-by-step breakdown:

1. Initial Access

The attacker gains a foothold using phishing or by exploiting an unpatched vulnerability. In some cases, this might happen weeks or months before the full attack is triggered.

2. Payload Deployment

The malicious code is executed. This might include disabling antivirus software, escalating privileges, and moving laterally across the network to infect more systems.

3. Data Encryption

Once the attacker has access to critical systems, the ransomware encrypts files, both local and networked, rendering them unusable.

4. Ransom Demand

A pop-up message or full-screen alert informs the user that their data is locked. The message usually includes:

• Instructions on how to pay the ransom (typically in cryptocurrency)

• A warning not to contact authorities

• A deadline - pay up or lose your data forever

5. Extortion and Double Attacks

Modern ransomware gangs may also exfiltrate data before encrypting it. This allows them to launch double extortion (threatening to leak the data) or even triple extortion (pressuring your customers or partners).

Even if you pay, there's no guarantee you'll get your data back or that the stolen data won't be sold anyway.

What makes ransomware so dangerous is its speed and scale, and in many cases, an entire business network can be encrypted in under an hour. Because ransomware is loud and disruptive by design, it’s not easy to ignore and the goal is to panic you into paying.

Some threat actors even offer 24/7 “customer service” to help victims pay the ransom more easily, just like a real business - it’s professionalized cybercrime.

Types of Ransomware

Ransomware comes in many forms, each using a slightly different method to lock you out or extort payment. Understanding these types can help you spot warning signs early and take the right steps to protect your systems.

Crypto-Ransomware

This is the most common form of ransomware. It works by encrypting files across your network, making them completely inaccessible unless you pay for the decryption key. Attackers usually set a deadline and threaten to delete your data permanently if you don’t comply.

Locker Ransomware

Locker ransomware doesn’t target files, instead, it locks users out of their devices entirely. You won’t be able to log in or access anything, often facing a full-screen ransom message that blocks your screen until payment is made.

Scareware

Scareware bombards users with fake alerts or pop-ups, claiming their system is infected. It pushes them to buy bogus security software or click on malicious links. While it doesn’t always encrypt files, it’s designed to create panic and trick users into handing over money.

Doxware (Extortionware)

Doxware is used to steal sensitive data, like customer records or intellectual property, and threaten to publish it unless a ransom is paid. It’s often used against industries with a lot to lose, like healthcare, legal, or finance.

Double & Triple Extortion

These attacks go further. First, they encrypt your data. Then, they threaten to leak it. In more advanced cases, attackers might even pressure your clients or hit you with a DDoS attack to force your hand. It’s all about increasing the pressure - and the payout.

Ransomware has evolved from isolated incidents to large-scale, coordinated cyberattacks with global consequences. Here are just a few examples of how ransomware has caused widespread damage:

WannaCry (2017)

WannaCry spread rapidly across the globe using a Windows vulnerability known as EternalBlue, which had been leaked from the NSA. In just a few days, it infected over 200,000 computers in 150+ countries. Major victims included the UK’s National Health Service (NHS), which was forced to cancel surgeries and reroute ambulances, as well as global companies like FedEx and Renault. The attack highlighted how unpatched systems can create a domino effect across critical infrastructure worldwide.

Colonial Pipeline (2021)

One of the most high-profile ransomware attacks in the US, Colonial Pipeline was targeted by the DarkSide ransomware group. The attack led to the temporary shutdown of a major fuel pipeline supplying nearly half of the East Coast’s gasoline, sparking panic buying and fuel shortages. The company paid a $4.4 million ransom to restore operations, although the FBI later recovered a portion of the payment. This attack underscored how ransomware can impact not just digital systems, but the physical economy.

MOVEit Zero-Day (2023)

In mid-2023, hackers exploited a previously unknown vulnerability (a zero-day) in the MOVEit file transfer software, used by hundreds of large organizations to securely exchange data. The attack compromised over 600 entities, including Shell, British Airways, the US Department of Energy, and numerous state governments. Sensitive data was exfiltrated and used in extortion schemes, highlighting the dangers of supply chain vulnerabilities and how trusted third-party software can become an entry point for mass-scale ransomware campaigns.

It’s a tough call, and one that has to be made quickly under immense pressure. But here’s what most experts recommend:

Don’t pay if you can avoid it.

Here’s why:

• No guarantees – You might not get a working decryption key.

• More attacks – Paying shows attackers that you’re a lucrative target.

• Legal risks – In some cases, paying may violate sanctions if the threat actor is on a government watchlist.

Instead, companies should focus on identifying how the attack happened, removing the malware from affected systems, and restoring operations using clean, uncompromised backups. It’s also important to report the incident to the appropriate authorities, such as the FBI or CISA, to support broader threat intelligence efforts and comply with regulatory requirements.