Personal Risk Insights
Don’t Be a Digital Hostage: How to Avoid Data Breaches and Ransomware Attacks
NOVEMBER 4, 2024
Cybercrime is expected to cost the world $9.5 trillion in 2024, and is projected to increase 15% to $10.5 trillion by 2025.1 Despite government intervention and more internet security, the number of data breaches and ransomware attacks continue to climb. To properly protect yourself, it’s important to understand the difference between the crimes.
What’s a Data Breach Versus a Ransomware Attack?
With a data breach, hackers aim to access and steal sensitive information. They are searching for:
- Social security numbers
- Credit card details
- Passwords
- Phone numbers
- Personal data
This information is sold on the dark web and purchased by cybercriminals to gain access to a person’s finances. However, monetary gain is not the sole motivation. Hacktivists groups publish stolen data belonging to people or organizations that do not share their beliefs.2
On the other hand, a standard ransomware attack is for monetary gain. Hackers place malware into the victim’s computer to steal and encrypt data. An encryption key is then created. Once ransom payment is received from the victim, usually via bitcoin or cryptocurrency, the encryption key is sent to the victim.
Data breaches and standard ransomware attacks are different in speed and malicious use of sensitive data. During a typical ransomware attack, the data is not exposed, and it is locked. The purpose is to steal money and not information. Hackers do not waste time reviewing data.
After executing the attack, the process becomes automated. Encryption keys are stored on separate command and control servers. Once payment is received, the key is automatically issued to the victims. Automating the process allows cybercriminals more time to look for their next victims.
There are times where data breaches and ransomware attacks merge, called a double extortion ransomware attack. A victim’s data is seized, and the criminals threaten to publish it on the dark web if the ransom isn’t received by the deadline. To encourage payment, cybercriminals immediately publish some of the victim’s data.
How You Attract Criminal Attention
Criminals search for various things when selecting a victim. Be aware of:
Four out of five breaches are partially attributed to weak or stolen passwords. More than 15 billion stolen credentials are being circulated on the internet and dark web.3
Apps account for 26% of data breaches. Poorly written software or inadequately designed network systems give hackers access to confidential data.
Malware gives hackers access to the affected system and potentially connected systems. This allows hackers to steal confidential information and achieve financial gain. Threat actors deploy 11.5 attacks per minute.4 Ninety-two percent of malware is delivered via email or by uploading files.
This involves tricks or manipulation to gain system access and is used in 98% of cyberattacks. Phone calls, phishing, malicious links (often sent via email, text or social media), are used to manipulate individuals into granting access or divulging sensitive information.
Failure to maintain strict access to your network leaves the system open to attack. Things like inappropriate permissions to individuals or leaving outdated permissions accessible (like prior guests you let use your Wi-Fi) are all appealing to cybercriminals.
How to Prevent Ransomware Attacks and Data Breaches
Overlap of ransomware attacks and data breaches is increasing. It’s essential to implement cybersecurity incident response and prevention practices. The plan should include:
- Education to those who use your network. Discuss popular attack methods. Practice detecting phishing emails. Remember, one infected email may divulge sensitive information.
- Keep your software updated, especially antivirus software. Patches are provided via updates to amend vulnerabilities and subvert cyberthreats.
- Implement a monitoring system that checks your system for vulnerabilities. This will identify and remediate vulnerabilities before they are exploited by cybercriminals.
- Conduct a risk assessment on third-party vendors. Compromised third-party vendors account for more than 60% of data breach events. Continuously monitor the security of your entire vendor network.
- Tier vendors based on their level of security risk. This allows you to distribute your risk management efforts to those who pose the highest risk, thus preventing the possibility of a cyberattack.
What to Do If You Are a Victim of Ransomware or a Data Breach
No matter how careful you are, accidents happen. If you are a victim of a ransomware attack, take the following steps:
- Disconnect the affected computer to prevent the ransomware from spreading.
- Do not pay the ransom.
- Report the incident to law enforcement.
- Record details of the attack.
- Update passwords after the ransomware has been removed.5
If you are notified that your information was compromised in a data breach, immediately:
- Update your passwords.
- Freeze your credit.
- Monitor your credit report.
- Notify one of the three major credit bureaus to place a fraud alert on your credit file.6
How USI Can Help
USI Insurance Services is here to help you with all your personal risk management needs. To learn more about good cyber hygiene, view our Cyber Checklist: Keep These Best Practices at Your Fingertips. If you are a victim of cybercrime or would like a cyber assessment, please contact USI at PersonalRiskService@usi.com.
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