In this digital age, technology has become both a blessing and a curse. Data is now stored on computers, tablets, and smartphones in abundance making us more vulnerable to malicious attacks. One form of attack that has become increasingly common is ransomware. If you've wondered what ransomware really is, why it has suddenly become so widespread, and more importantly, how you can be sure your data is protected against it and other cyber threats, read on. In this article, we'll answer some of the most common questions about ransomware including what it is, and why insurance against such malicious attacks has become more essential than ever before.

Table of Contents

• What is ransomware?
• Why is ransomware protection important?
• What is the biggest risk when it comes to ransomware attacks?
• What happens if you pay the 'ransom' for ransomware?
• How can you defend yourself against ransomware?
• What is ransomware insurance and what does it cover?
• Do I need ransomware insurance?
• Key Takeaways

What is ransomware?

Ransomware is a type of malware that can infect your computers, tablets, phones, servers, and any equipment connected to the internet. It's malicious software designed to block access and lock data (usually using encryption) to a computer system until payment is provided. Typically, it's deployed through phishing scams, malicious links, or drive-by downloads.

Why is ransomware protection important?

Ransomware protection is important because without it you have no choice but to meet a ransom demand if you fall victim to a ransomware attack. Otherwise, you'll lose access to all of your data - everything you have ever recorded, documented, or kept track of on your equipment, computer, tablet, or phone will be completely locked and inaccessible to you. That might include company files, accounting files, paychecks, personal information, etc. 

What is the biggest risk when it comes to ransomware attacks?

The biggest risk when it comes to ransomware attacks is losing all of your data and the damage that results from that loss. Losing access to data isn't just about the data - it's about financial losses. Consider the cost of losing the ability to operate your business, of being held accountable to the clients and customers whose data you were storing, and the cost of rebuilding everything you've lost. The potential losses (and potential risks) of a major ransomware attack are huge.

What happens if you pay the ransom for ransomware?

When you pay a ransom you either receive the decryption key for all of your data or you don't. There is no guarantee that when you meet the ransomware demand, the files will be released. In fact, you may even find that the attacker will launch another attack with the same malicious code, demanding even more money. 

Many big companies have made ransomware payments and have gotten their keys, but others haven't. There is a fifty-fifty chance that either could happen; it just depends on the risk you are willing to take.

How can you defend yourself against ransomware?

So, while it may be possible to decrypt the data without paying the ransom, it takes a very, very long time (months if not years) and costs the business lost revenue for this period on top of the costs of recovery. If companies don't have their data backed up properly they will pay the ransom to get their data back because, without their data, their company could fail.

Ransomware can be defended in a couple of ways. Antiviruses can help mitigate the risk of ever getting ransomware on your computer but they are not foolproof. The best way to protect yourself from ransomware is to have backups of all of your data and to get cyber insurance coverage (sometimes referred to as ransomware insurance).

Backups need to be on devices separate from where the data is primarily stored. For example, when all of your data for your company is stored on your main computer, you should have a backup on a separate computer (preferably located off-site) or a cloud backup. In the case that you have been infected with ransomware, you can quickly get your data back from a backup minimizing business disruption and financial losses.

What is ransomware insurance and what does it cover?

Ransomware insurance (or cyber insurance) is a type of protection designed to pay the costs associated with successful ransomware attacks. It covers costs associated with data loss, damage to reputation, fees paid for decrypting the encrypted data, and other remediation costs. It also covers legal fees associated with defending any claim from customers affected by the attack. Finally, some policies include public relations help in order to restore customer confidence in your business after an attack.

While cyber insurance protects against cyber extortion attacks it does not protect against cyber risks associated with all forms of malware. Regular risk assessments and monitoring are recommended to reduce the chances of a successful attack from other types of malware.

Do I need ransomware insurance?

If your business stores sensitive data, yes, you need ransomware insurance. Cyber risks are everywhere - cyber insurance policies ensure you can safely and securely operate your business online. 

If you're an individual, you likely don't need cyber insurance protection against ransomware. Most hackers are not going after a person. Usually, an attacker is going to focus their time and energy on infecting a business because the business relies on that data to operate. It's why organizations in the healthcare industry are so often targeted. A hospital guarding patient records is going to be willing and able to pay a lot more in ransom than an individual who may have lost their personal photos or even their own sensitive financial data. 

That said, individuals should exercise caution while online.  Hackers intentionally cast a wide net so, even though a person may not be the target, they still may find themselves the victim of a ransomware attack. To best protect yourself as an individual, make sure you’re using multi-factor authentication for your accounts and that you are familiar with how to identify phishing emails and other online scams. Also, don’t forget to back up anything important (pictures, personal financial information, etc.) onto an external hard drive.

Key Takeaways

• Ransomware is malicious software that encrypts data and blocks access to it until payment (ransom) is received.
• Ransomware attacks can incur significant financial losses from the inability to access data, as well as increased costs for rebuilding.
• Cyber insurance coverage (a.k.a ransomware insurance) is essential for protecting your business against ransomware attacks and should be combined with backups of all data stored in separate devices.

Twin Pines Technology Can Help

At Twin Pines Technology we help businesses protect, ensure, and recover from IT incidents. When working with us, you won't have to lift a finger to protect your equipment and your data with our monitoring service. Call us and begin protecting your business's data against ransomware attacks today.