Ransomware

Ransomware

Subject – Security

Context – The confluence of remote working together with the rise in sophistication of organised cyber-criminal groups has led to the rise of ransomware as the one of the most significant cyber risks to face organisations and governments alike.

Concept –

• Ransomware is a malware or malicious software that accesses vulnerable files and systems and locks the users out by encrypting the files or systems until a ransom money is paid by the victim to obtain decryption key.
• Over the years, various state sponsored/independent cyber-criminal outfits like ‘Ryuk’, ‘REvil’, and ‘Darkside’ have emerged and developed a highly lucrative business model known as ‘Ransomware as a Service (RaaS)’ where ransomware developers form alliances with other cyber-criminal groups (‘Affiliates’) who increase their outreach and share the proceeds of exploits in pre-agreed proportions.

Financial Impact –

• According to Willis Towers Watson’s (WTW’s) Global Cyber Insurance Claims data, the average ransomware demand in 2020 was between $4-4.5 million (up from under $3.5 million in 2017), with the average ransom payment noted as slightly above $1.6 million.
• According to Sophos’s ‘State of Ransomware 2020’ report, India is statistically the most impacted, with average ransomware remediation costs of $1.1 million and average ransom payment being $76,619.