What is Ransomware and How Does it Work?

Ransomware is a type of malware designed to block access to a computer system until a sum of money in the form of untraceable Bitcoin is paid. It does this by encrypting a victim’s files until they have made the payment demanded by the attacker. Ransomware can be delivered via multiple vectors, the majority of which utilize email. Phishing is one of the most common methods of delivery. When a user downloads a malicious attachment within a phishing email which contains ransomware, all of the user’s files are encrypted and made inaccessible until the ransom specified in a message presented to the user is paid. In some cases, the attacker may claim to be a law enforcement agency shutting down the victim’s computer due to alleged pornography or illegal software found on it. In these cases, they often refer to the payment they are demanding as a “fine”, hoping that disguising it as such will make the victim less likely to report the attack. This highly deceptive tactic is often successful. In the case of a specific variation of ransomware referred to as “leakware” or “doxware”, a criminal threatens to publicize sensitive information on the victim’s hard drive unless ransom is paid. However, obtaining such information is difficult and usually requires a significant amount of time and effort. As a result, encryption ransomware accounts for the majority of campaigns.

Ransomware Attack Explained | Ransomware Protection Best Pract.

Q: Who Does Ransomware Target?

While ransomware is a serious threat to all businesses and organizations, some entities are at heightened risk of suffering an attack. For instance, medical facilities or government agencies are often targeted in ransomware campaigns because they tend to pay ransom quickly due to the fact that they need immediate access to their files. Over the past year, approximately 2,400 ransomware attacks have hit corporate, local and federal offices. Small- to medium-sized businesses (SMBS) are also highly attractive targets among ransomware operators because attackers know that these companies often have smaller security teams and tend to invest less in cyber defense. Eighty-five percent of MSPs report ransomware as a common threat to SMBs, and 29% of small businesses have experience with ransomware - making them more likely to be unprepared for this threat. Data reveals that the majority of small businesses are not able to recover from an attack, and 60% of small companies go out of business within six months of getting hit with ransomware.

Infographic depicting ransomware threats and defenses.

: by Leah Miksi-Sahdo; Category: Must Read Blog Posts; Jul. 10, 2025

(Reading time: 6 - 11 minutes)

Ransomware attacks are now deemed inevitable as they dominate email security news headlines daily. The Colonial Pipeline Ransomware Attack is one example of the real-world consequences of a successful cyberattack.

That single attack disrupted fuel supply across the East Coast and reminded everyone: ransomware is real, expensive, and it’s not going away. Ransomware prevents you from using your computer until you pay a fine or fee. While ransomware threats pose a serious risk to all businesses—including the ever-targeted world of ransomware—the proper tools can prevent these devastating attacks.

This article will detail everything you need to know about ransomware and malware protection to safeguard your users, critical assets, and reputation.

What Is Ransomware & How Does It Work?

Ransomware is a type of malware that prevents users from accessing their files or systems until they pay a ransom, usually in Bitcoin, which is nearly impossible to trace. It works by encrypting the victim’s data through targeted software attacks, effectively locking everything down until the attacker is paid.

The financial impact is severe. Each successful attack can result in millions of dollars in downtime and recovery costs. In 2025 alone, government losses from ransomware are projected to exceed $8.1 billion based on current incident trends.

These attacks arrive in many forms, but email is the most common route. Phishing campaigns are especially popular, tricking users into downloading attachments that carry ransomware. Once opened, the malware encrypts every file on the system. The victim is locked out, and the only way back in is to pay up.

Sometimes, attackers impersonate law enforcement. They claim the computer was shut down because of illegal content—pirated software, pornography, or something similar. In those cases, they call the ransom a “fine,” hoping to make it seem official and discourage the victim from reporting the incident. It’s deceptive, but it often works.

Another variation, known as “leakware” or “doxware,” takes a different approach. Instead of just locking the data, the attacker threatens to publish sensitive files unless a ransom is paid. But this method is more labor-intensive—finding useful data takes time and effort. Because of that, most phishing campaigns still rely on traditional encryption-based ransomware. It’s faster, easier, and just as effective.

Ransomware attack diagram

Download

Who Does Ransomware Target?

Anyone with a network connection is vulnerable. But some targets stand out more than others.

Healthcare providers and government institutions are prime picks because they can’t afford downtime. They’ll often pay just to restore critical services. In the first five weeks of 2025 alone, there were 378 ransomware attacks on U.S. government organizations—a 150% jump from the same period last year. At this rate, the year could end with 3,900+ incidents.

But it’s not just about big players. Small business ransomware operations are booming.

The ransomware small business trend continues to grow as attackers target under-resourced teams that lack dedicated IT staff. That makes them low-hanging fruit. The rise of small business ransomware attacks is especially concerning given how unprepared most of these companies are to recover. Nearly 85% of managed service providers (MSPs) say ransomware is one of the most common email threats they deal with. And 29% of small businesses have already been hit. What happens when these small businesses are faced with a breach? 60% of small businesses shut down within six months of a major breach. Ransomware small business attacks are often fatal, because unlike enterprises, these businesses don’t have recovery plans or budget room for a major hit.

Common Types of Ransomware

Ransomware is constantly evolving, and sophisticated new strains are always emerging. While each new variant has unique characteristics and methods of spreading, all ransomware strains rely on similar social engineering tactics to deceive users and encrypt their files. Some notorious ransomware variants include: Infographic on ransomware risks

Ransomware is constantly evolving, with sophisticated strains newly emerging every year. While each new variant has unique characteristics and methods of spreading, all ransomware strains rely on similar social engineering attacks to deceive users and encrypt their files. Some notorious ransomware variants include:

WannaCry: The most well-known ransomware variant globally, this crypto worm has infected nearly 125,000 organizations in over 150 countries.
CryptoLocker: The CryptoLocker botnet has been around for the past two decades; however, the CryptoLocker ransomware emerged in 2013 when hackers used the original CryptoLocker botnet approach in ransomware.
Petya: This ransomware variant, which arrives in an email threat disguised as a job applicant’s resume, began spreading in March 2016. If a user clicks on a malicious file within this email, their computer is rebooted, and the user’s files become unreachable until a ransom is paid. Petya encrypts .exe files, which sometimes interfere with victims’ ability to pay the ransom.
NotPetya: Similar to Petya, NotPetya encrypts a victim’s master file table and requests a Bitcoin ransom to restore access to these files. However, NotPetya is different and more dangerous than Petya in multiple ways. It spreads on its own, encrypts everything on a victim’s computer, and technically is not ransomware. In encrypting a user’s data, and renders it irreparable. U.S. government estimates place the global economic impact of NotPetya at around $10 billion in 2017, which adjusted to roughly $11.9 billion in 2023 dollars.
Bad Rabbit: This strain of ransomware typically spreads through a fake Adobe Flash update on compromised websites. It has infected organizations across Russia and Eastern Europe.
Cerber: This ransomware variant targets cloud-based Microsoft 365 users. Sophisticated phishing campaigns by Cerber ransomware victimized millions of users. As a result, secondary email protection that closes gaps in Microsoft 365’s defenses is essential to keeping users and their data secure.
Locky: A ransomware variant designed to lock victims’ computers until a ransom is paid. Locky spreads through a seemingly harmless email disguised as an invoice.

Mobile Ransomware and RaaS

Authors and operators of ransomware are motivated by the potential to make a profit, which has led to rapid increases in innovation and creativity in their tactics. This includes a surge in small business ransomware attacks, where even low-effort campaigns can result in high payouts due to minimal defenses.

Attackers can replicate minor attacks against large corporations and demand a significant ransom. To do this, cybercriminals only require a small percentage of successful large-scale attacks to produce substantial revenue, a considerable incentive for email threat actors.

A report from the National Cyber Security Centre (NCSC) and the National Crime Agency (NCA) warns of email threats like Ransomware-as-a-Service (RaaS) and mobile ransomware.

RaaS schemes on the dark web—similar to a cybercrime subscription model—allow individuals and groups to have an impact disproportionate to their technical skill, and are expected to increase in prevalence.

Mobile ransomware is rising because mobile phones often lack adequate email security defenses and contain valuable information. Experts predict a steady increase in mobile ransomware attacks and the magnitude of these phishing campaigns.

Best Practices for Protecting against Ransomware

Though the fallout from a successful cyberattack can be difficult—even nearly impossible—to prevent once accomplished, engaging in email security best practices and investing in a comprehensive, fully managed email security software solution can drastically reduce your risk of ever encountering this type of threat in the first place.

Some helpful tips and tricks for preventing a ransomware attack include the following:

Confirm the legitimacy of an email before downloading any attachments.
Ensure your operating systems (OS) are patched and updated. This reduces the chance of vulnerabilities that criminals could exploit.
Backup your files frequently and automatically. While this isn’t a foolproof way to prevent a ransomware attack, it can reduce the damage caused by one.
Invest in full-scale, preventative cloud email security software that accurately detects malicious email threats—such as those containing ransomware—and prevents them from reaching the inbox.

How Can I Protect Backups from Ransomware?

While backing up your files regularly may reduce the devastation caused by a potential ransomware attack, backups are becoming less reliable as ransomware evolves. Threat actors are getting smarter and attacking backups to prevent recovery.

It’s essential to engage in the best practices for email security to ensure malware protection for your backups as well. Here are some solutions you can utilize:

Supplement backups with additional copies and third-party tools.
Keep multiple copies of essential files at various locations.
Isolate Backups: The more barriers that exist between an infected system and its backups, the harder it will be for ransomware to attack them.
Test your backups! Perform restoration exercises regularly to identify any issues with your backups and how much the malware protection you implement works

If Your Computer Has Been Infected With Ransomware

If your computer has been hit with ransomware, your options are limited, and the outcome isn't guaranteed. In most cases, there’s no way to decrypt the locked files unless you have the exact encryption key used by the attacker.

Removing the ransomware itself is possible and should be a priority, but doing so won’t magically unlock your data. The malware may be gone, but your files will remain encrypted unless the key is recovered. That’s why some victims feel pressured to pay, especially when the ransomware blocks access to the entire system and demands immediate payment to restore it.

Even then, paying the ransom doesn’t always lead to recovery. There’s no guarantee the attacker will actually provide the key, or that it will even work.

Types of ransomware explained

Should I pay the ransom?

Paying the ransom perpetuates the cycle of cybercrime. Decryption keys for many common ransomware strains are available, and victims should always seek the guidance of email security experts before even considering payment. It is often possible to recover encrypted data without paying criminals. Sites like No More Ransomware were established to evaluate your encrypted files after you’ve been compromised, to help you ascertain the ransomware threat type used.

However, decryption tools may be unavailable in cases involving newer or less common ransomware variants. Avoiding ransomware payments ends up being an unrealistic solution for businesses and organizations facing data loss. Although 66% of companies say they would never pay a ransom to cybercriminals, when facing an attack, 65% give in. Whether or not to pay ransom to restore encrypted files is complex. It is both a moral and practical decision, often involving a cost-benefit analysis.

The FBI’s position on dealing with a ransomware attack is that victims should never pay a ransom to attackers. The reasoning: Ransom does not always guarantee the decryption of files, and such payments may be used to fund other criminal activity, making strong ransomware protection your best defense.

Keep Learning About Ransomware Prevention

When it comes to ransomware protection, prevention is far better than remediation. The best defense against ransomware is prevention, and that starts with robust, intelligently layered email security. Here are our ransomware prevention tips:

Learn more about effectively protecting your business from malware and ransomware.
Learn more about an effective email security software solution that understands the relationships you have with other people while gaining a more profound knowledge of the types of conversations you have with them.
Prepare your business for cyberattacks to make sure employees stay safe online. Learning how to protect backups from ransomware is especially important.
By following best practices for email security, you can improve your company’s ability to protect against all types of phishing attacks and email security breaches.
Keeping the integrity of your email safe requires securing the cloud with spam filtering and enterprise-grade anti-spam services.
Get the latest updates on how to stay safe online.

Want to learn more about the magnitude of your business email risk and get expert advice on reducing it? Use our free Email Risk Assessment Toolkit and learn about steps you can take to better secure your business against phishing, ransomware, and other modern threats in less than two minutes.

Assess My Email Risk Now >