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Ransomware Recovery: How Australian Businesses Can Bounce Back After an Attack

Cyber-attacks are a growing concern for businesses and individuals worldwide. With a cyberattack roughly every 39 seconds, no business is immune and Australian companies are feeling the pressure as these attacks become more frequent and sophisticated.

The risks and consequences are very real, but with the right protection, strategies, and recovery plans in place, businesses can not only survive a ransomware attack but come out stronger on the other side. In this post, we’ll cover the essential steps to recover from a ransomware attack and build safeguards for whatever comes next.

What is Ransomware and How Does it Work?

Ransomware is a type of malicious software designed to encrypt your files and block access to your computer system and demand a ransom in order to regain access. Ransomware was originally used to target individuals but has since evolved to focus on businesses who are often more willing to pay higher ransoms to recover critical or sensitive data.

This leaves organisations in a tough position where paying the ransom can seem like the quickest and most cost-effective way to regain access.

There are several different methods hackers use to access your system. The most common tactics include:

  • Phishing: These are usually emails that contain malicious attachments or links. These emails trick users into opening files or clicking on links that trigger the infection.
  • Drive-By Downloads: Here simply visiting a compromised website can allow ransomware to install itself without you even knowing.
  • Remote Desktop Protocol (RDP): In these cases, an attacker gains access by stealing or guessing an employee’s login credentials. With this access, they can remotely connect to a computer within the company’s network, directly download the malware, and execute it on the compromised system.

Once the malware infects a system, it encrypts files by exploiting the encryption capabilities built into your operating system. he ransomware accesses files, encrypts them, and replaces the original versions with the encrypted ones, which only the attacker can decrypt.

Once all the files are encrypted, the attacker makes a ransom demand. Ransomware variants differ in how they communicate this, but it typically involves changing the system’s background to display a ransom note or placing text files in each encrypted directory. The ransom is usually requested in cryptocurrency, as it provides a degree of anonymity for the cybercriminals.

Should You Pay The Ransom?

At first, paying the ransom might seem like the quickest and easiest way to regain access to your files. However, the reality is far more complicated, and often disappointing.

Studies show that organisations that pay the ransom typically recover only about 65% of their data. This means that even if you comply with the attacker’s demands, there’s no guarantee you’ll get everything back. Cybercriminals may provide partial decryption, leave some files permanently locked, or can even disappear after receiving the payment.

Even if decryption keys are given, the process is not instant. Decrypting data can take days or even weeks, slowing down business operations and causing extended disruptions. Meanwhile, your organisation remains vulnerable.

The biggest risk of paying the ransom is that it encourages hackers to do it again. Once attackers know you’re willing to pay, they are more likely to strike again, either by launching another attack themselves or selling your details to other cybercriminals.

Different Types Of Ransomware Attacks

Ransomware comes in several forms, each with its own tactics and level of severity. Understanding the different types of ransomware can help you better prepare for potential threats.

  • Crypto Ransomware: This is one of the most common and destructive forms of ransomware. It encrypts your files and data, rendering them inaccessible without a decryption key, which attackers demand in exchange for payment. This type of attack can cripple businesses, locking away critical documents, databases, and even backup files if they are not properly secured.
  • Locker Ransomware: Unlike crypto ransomware, which targets specific files, locker ransomware completely locks you out of your system. It typically displays a ransom note on your screen, often with a countdown timer. While your files may remain untouched, you won’t be able to access them without meeting the attacker’s demands.
  •  Scareware: Scareware relies on fear tactics rather than encryption. It displays fake security alerts claiming your system is infected with viruses or malware, pressuring you into paying for fraudulent security software. While some versions lock your system until you pay, others simply bombard you with relentless pop-ups to create panic.
  • Doxware: Also known as leakware, doxware threatens to release your sensitive data online unless a ransom is paid. This type of ransomware is particularly dangerous for businesses that store confidential client information, financial records, or intellectual property, as the potential reputational and legal consequences can be significant.
  • Ransomware-as-a-Service (RaaS): This is one of the newest forms of ransomware and operates as a subscription-based cybercrime model where professional hackers develop and distribute ransomware to affiliates to share any ransom payments.

The Growing Threat Of Ransomware: Stats and Examples You Need To Know

Every six minutes, an organisation in Australia falls victim to a ransomware attack, and the financial impact is staggering. It’s estimated that ransomware alone is costing the Australian economy up to AUD$3 billion in damages every year. In the 2023 alone, the Australian Federal Police (AFP) identified at least 56 businesses and government agencies that fell victim to BlackCat, a highly organised and sophisticated ransomware group.

The effects of ransomware attacks are felt deeply by businesses of all sizes:

  • 43% of Australian organisations reported significant revenue losses following an attack.
  • 42% had to lay off staff due to the financial strain.
  • 39% of businesses lost customers as a direct result of a breach

But, the damages are not just financial. Ransomware also consumes valuable time and resources. On average, 17 people spend 134 hours each to contain and recover from a single attack. And in 28% of cases, critical systems are affected, forcing businesses to operate without access to vital data.

Recognising The Signs Of A Ransomware Attack

Early detection is critical when it comes to ransomware. The faster you recognise an attack, the better your chances of containing the damage and preventing data loss. The most common warning signs include:

  • Files Suddenly Become Encrypted or Inaccessible: One of the most obvious signs of a ransomware attack is when files can no longer be opened. If you see documents, images, or other important files displaying error messages or requiring a special key to access, it could mean they’ve been encrypted by ransomware.
  • System Slowdowns and High Disk Activity: If your system suddenly becomes sluggish or your hard drive is running at full capacity for no apparent reason, ransomware could be actively encrypting your files in the background.
  • Unusual Network Traffic and Suspicious Logins: Cybercriminals often steal credentials and move through networks before deploying ransomware. If you notice strange login attempts, especially from unknown locations or at unusual hours, it may be a sign of an impending attack.
  • New User Accounts with Privileges: Ransomware attackers sometimes create unauthorised admin accounts to gain deeper access to your system. New user accounts with elevated privileges that weren’t created by your IT team is a major red flag.
  • Security Systems Are Disabled Without Approval: If antivirus software, firewalls, or endpoint security tools are suddenly turned off, it is a sign that an attacker may have breached your system and is preparing to launch an attack.
  • Backups Fail Without Explanation: Ransomware groups know that backups are a lifeline for businesses, so they often target and disable backup systems before deploying an attack. If you notice unexpected backup failures or missing data, investigate immediately.
  • Files Show Strange Extensions or Renamed Files: Many ransomware variants alter file names or add unusual extensions (such as .locked, .encrypted, or random characters). If you see file names that look unfamiliar or has changed unexpectedly, it could be a sign that encryption is underway.

Responding To Ransomware: Steps To Take

No one ever wants to face a ransomware attack, but if it happens, acting fast can make all the difference. Here are steps to take when dealing with a ransomware attack:

1. Record Important Details

Before taking any further action, document everything you can about the attack. These records will be critical for cybersecurity professionals, insurance claims, and possible legal action.

What to Record:

  • Ransom note: Take photos or screenshots.
  • File changes: Look for files with new extensions or altered names.
  • Unusual system behaviour: Note anything that changed since the attack began.

2. Turn Off The Infected Device

Shutting down the infected device is one of the quickest ways to stop the ransomware from spreading. Hold down the power button or unplug the device directly from the power source. Be sure to unplug ethernet cables, disable Wi-Fi access, turn off Bluetooth and mobile data. Avoid USB drives or external storage devices as this can also spread the infection.

3. Disconnect Other Devices

Since ransomware can spread across multiple devices, check for other potentially infected systems and isolate them as well. Start with your most valuable systems that hold important information, including:

  •         Servers and network storage devices.
  •         Computers and workstations.
  •         Mobile phones and tablets.
  •         Any device holding business-critical data.

4. Notify And Alert Employees and Stakeholders

Clear communication is essential during a threat. Alert employees and stakeholders as soon as possible to prevent further issues and ensure everyone follows security protocols. Be sure to report the attack to the Australian Cyber Security Centre (ACSC) via ReportCyber. As a business and the severity of the attack, you may be required to notify your customers of the attack.

5. Change Important Passwords

Some forms of ransomware steal passwords, but it’s difficult to know exactly what has been accessed. As a precaution, immediately change your most critical passwords. It is best to prioritise:

  • Cloud storage accounts.
  • Email accounts.
  • Bank accounts.
  • Business and financial accounts

For an added layer of security, enable Multi-Factor Authentication (MFA) on accounts that support it. This makes it significantly harder for cybercriminals to gain access and can notify you as well of any potential threats.

6. Getting Professional Help

It may be tempting to try and delete the ransomware, but attackers often embed hidden malware components deep within the system. Attempting DIY removal without expert help can worsen the situation, making recovery even harder.

Recovering From A Ransomware Attack

Recovering from a ransomware attack can be a complex process, but taking the right steps can help you regain control of your data and systems.

If your business does not have a dedicated internal IT team, getting external assistance from a professional IT support provider is highly recommended. They can guide you through the recovery process and reduce the risk of reinfection.

However, success depends on the type of ransomware you’re dealing with.

7. Assess Your Backups Before Restoring

The best defence against a ransomware attack is having reliable backups. If you’ve been proactive and kept backups of your critical data, this can accelerate your recovery. But before you rush to restore, make sure your backups are clean and free from ransomware. If they were saved on the same infected network or device, they could be compromised.

Additionally, you should never reconnect these backups directly to the infected device as you risk spreading the ransomware again. If you’re unsure about the integrity of your backups, get expert help to assess their safety and integrity.

8. Remove Ransomware From Affected Drives And Devices

Once you’ve secured your data, it’s time to remove ransomware from your devices. The most effective way to do this is by wiping all infected drives and reinstalling the operating system. This is a drastic measure as it erases all data on the infected devices. So before wiping, make sure you’ve secured any recoverable data.

Remember, ransomware can spread across networks, so this step applies to all connected devices. By cleaning all systems thoroughly, you ensure that the malware doesn’t resurface after the recovery process.

9. Restore Your Information

With ransomware removed, you can now restore your clean backups. It is best to do this in stages with verified, ransomware-free backups. While this process can be time-consuming, it ensures that no traces of the malware are reintroduced into your systems. Take your time to systematically restore data, testing as you go to make sure everything is functioning as it should.

To make this process faster and more efficient, consider working with data recovery professionals. They can guide you through the recovery and ensure your systems are fully restored without taking any shortcuts.

Preventing Future Attacks

Prevention is always better than cure. As businesses face the growing threat of ransomware, it’s essential to implement multiple layers of security to protect against future attacks.

Cybersecurity Best Practices

Your first line of defense against ransomware starts with regular software updates. Attackers often exploit vulnerabilities in outdated software, making timely updates essential to keeping your systems secure.

Additionally, adopting a Zero Trust security model can further safeguard your network. This model ensures that no user or machine is automatically trusted and requires strict access controls at every level, minimising potential points of entry.

Have a Recovery Plan

It’s crucial to have a detailed incident response plan in place. This should outline clear procedures to detect, analyse, contain, and recover from ransomware attacks. A well-prepared plan ensures you can react swiftly and effectively, minimising damage in case of a future breach.

Awareness and Education

Human error is responsible for about three-quarters of all breaches. Thus, education and awareness is essential to preventing a ransomware attack. Training should focus on:

  • Identifying phishing attempts and recognising social engineering tactics
  • Practicing safe browsing and email security
  • Properly responding to suspicious activities and threats
  • Regularly updating staff on emerging threats

Regular Security Audits and Testing

Routine security audits and testing can help you identify vulnerabilities before attackers have the chance to exploit them. Regularly assess your organisation’s security posture, review existing controls, and make necessary improvements to stay ahead of evolving cyber threats.

Ensuring Compliance

Complying with relevant regulations doesn’t just ensure you are meeting legal requirements, it also provides a strong framework for cybersecurity preparedness. Compliance standards often include guidelines for protecting sensitive data and responding to incidents, helping you to be more prepared for potential ransomware attacks.

Read More: What Is A Cyber Security Audit? Steps and Benefits for Your Business

Staying Ahead Of Attacks

Ransomware attacks are a growing threat to businesses of all sizes across Australia. With the increasing frequency and sophistication of these breaches, it’s more important than ever to stay proactive and protect your systems, data, and reputation. By understanding the warning signs, know the steps to take and implementing preventative measures, you can significantly reduce your risk and recover more quickly if an attack does happen.

If you’re unsure about your current cybersecurity posture or want to strengthen your defences, our expert security audit services are here to help. At CRT Network Solutions, we’ll assess your vulnerabilities, recommend improvements, and guide you in creating a customised plan to protect your business from future security threats. Get in touch with us today to learn more!

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