Ransomware: a growing trend in the cyberfraud landscape

The financial landscape is becoming increasingly aware of the importance of data. As we have pointed out on other occasions, data is essential for understanding the business, conducting detailed analyses, uncovering hidden gaps, and making strategic decisions that optimise processes and strengthen cybersecurity in financial operations.

Precisely because of its growing value, data has become the primary target of cyber fraud, which finds increasing opportunities for illicit profit and harm in its theft or misuse. Cybercriminals’ strategies are becoming more sophisticated and dangerous, with one of the most insidious being ransomware.

What is ransomware, and who does this type of digital fraud affect?

Ransomware is one of the most widespread and destructive forms of online fraud. It involves locking data or computer systems, typically through phishing or malware, and demanding a ransom to restore access.

The cost of ransomware attacks continues to rise: global damages are estimated to reach $42 billion in 2024 and could escalate to $265 billion by 2031¹. Over the past year, countries most affected by these attacks have primarily been in Europe, with UK among the hardest hit. Ransomware being the largest cyber threat to most UK organisations, last year was recorded as the worst year so far for ransomware payments, reaching more than $1 billion lost to victims worldwide, according to industry estimates by Chainanalysis.²

According to a Sophos report³, the likelihood of suffering a ransomware attack increases proportionally with an organisation's revenue: 67% of companies with revenues exceeding $5 billion have experienced this type of digital fraud.

Ransomware impacts all sectors, but in 2024 it is expected to target those where data is particularly valuable, such as:

• Government entities (68%)
• Healthcare (67%)
• Education (66%)
• Industries with complex supply chains like energy and utilities (65%), manufacturing (65%), and even retail (45%)³.

In most cases, the initial point of entry into corporate systems is a fraudulent e-mail attack. However, other methods are also used, including:

• Exploiting vulnerabilities: 32%
• Compromised credentials: 29%
• Malicious emails: 23%
• Phishing: 11%
• Brute force attacks: 3%

This form of cyber fraud is highly profitable and destructive, leading to the creation of criminal infrastructures like RaaS (Ransomware as a Service). These platforms allow less experienced cybercriminals to access sophisticated cyberattack tools, turning ransomware into a commercialised service on the dark web, complete with customised packages and customer support.

The dangers of ransomware in the cybersecurity of businesses and organisations

The consequences of a ransomware attack are primarily financial, tied to the ransom payment required to regain access to locked data and systems. However, its indirect effects on cybersecurity can be even more damaging:

• Operational Disruptions:
  Ransomware attacks can paralyse business operations, severely affecting productivity. This is especially critical for companies with complex supply chains, as the disruption of a single node can compromise the entire ecosystem. In sectors like logistics and retail, an attack on a supplier can quickly spread, impacting the entire supply chain.
• Reputational Damage:
  Data breaches are particularly harmful to a company’s image, eroding customer trust and loyalty.
• Legal Risks:
  Regulations such as GDPR and the NIS 2 Directive in Europe impose strict data protection obligations. Companies hit by ransomware attacks, especially those involving sensitive data leaks, may face severe fines for non-compliance or data loss.

Understanding data: strategies and solutions to prevent ransomware

Prevention is the first step in defending against ransomware. Best practices include:

·       Continuous employee training

·       Constant monitoring of networks and systems

·       Segregated backups of critical data

However, a crucial aspect that should not be overlooked is understanding the data. Many companies are not fully aware of the data they possess or its value, both in commercial terms and its appeal to cybercriminals.

In the realm of payment management, tools like payment orchestration platforms play a fundamental role. A centralised payment infrastructure enhances data visibility, allowing businesses to:

·       Develop more effective strategies

·       Implement targeted and efficient fraud prevention measures

·       Respond swiftly to attacks

A well-orchestrated value and supply chain reduces risks associated with distributed vulnerabilities, strengthening the organisation’s overall resilience.

Conclusion

In an increasingly digital world, data has become the most valuable asset for businesses. Ransomware underscores the importance of not only investing in fraud prevention and cybersecurity technologies but also in solutions that enhance awareness and control over data.

Infrastructures like Fabrick Payment Orchestra centralise process management, enabling faster and more effective preventive strategies. They also provide organisations with the visibility needed to understand the value of information, not only in commercial terms but also in its intrinsic significance.  To find out more on the world of fraud prevention for Ecommerce, download Fabrick’s whitepaper on orchestrating fraud prevention.