Ransomware attacks have become one of the most damaging cyber threats for businesses of all sizes. In addition to disrupting operations, they can cause significant financial damage and harm an organization’s reputation. When a client falls victim to such an attack, knowing how to act quickly is crucial to mitigating damage and ensuring effective recovery.
In this article, we will explain what ransomware is, how it affects business systems, its operational, financial, and reputational impacts, and the steps lawyers and cybersecurity experts should take to protect their client’s interests.
What Is Ransomware?
Ransomware is a type of malware designed to block access to systems or files, usually through encryption. After infection, criminals demand a financial ransom (typically in cryptocurrency) to restore access.
How Does Ransomware Work?
- Infiltration: Ransomware enters the network through phishing (fake emails), malicious file downloads, or system vulnerabilities.
- Encryption: It locks the data and displays a message demanding ransom payment for decryption.
- Double Extortion: In many cases, hackers threaten to expose confidential data if the payment is not made.
💡 Practical Example: A logistics company receives an email that appears legitimate from a supplier. Upon clicking the attachment, the system becomes infected, blocking access to customer and delivery records.
How Does Ransomware Affect a Business?
The impacts of a ransomware attack go far beyond temporary service disruptions.
1. Operational Impact
- Total System Disruption: Without access to files and systems, the company may face complete shutdowns.
- Productivity Loss: Employees are unable to work, leading to delays in processes and projects.
💡 Practical Example: A hospital experiences critical delays because patient records become inaccessible due to ransomware.
2. Financial Impact
- Ransom Costs: On average, the ransom demanded by criminals ranges from thousands to millions of dollars.
- Revenue Loss: Operational disruptions result in lost sales and payment delays.
- Recovery Costs: These include system restoration, new security tools, and specialized consulting.
💡 Practical Example: An e-commerce store suffers an attack and is forced to halt operations for a week, leading to significant losses during a promotional campaign.
3. Reputational Impact
- Loss of Trust: Customers and partners may lose confidence in the company after a data breach.
- Brand Damage: The negative publicity associated with an attack can take years to overcome.
💡 Practical Example: A fintech faces public criticism after its customers’ financial data is compromised in an attack.
Do Not Pay a Ransom
Why Not Pay the Ransom?
- No Guarantee of Data Recovery Cybercriminals have no real obligation or incentive to restore access to data after payment. Studies show that in many cases, even after paying the ransom, data remains inaccessible or gets damaged.
💡 Practical Example: A company pays millions to decrypt its files and receives an invalid key or one that only partially works.
- You Become a Recurring Target Paying encourages criminals to attack again, as it shows the company is willing to comply. Additionally, hackers may share information about “payers” with other groups, increasing the risk of new attacks.
💡 Common Scenario: After paying the ransom, a company is attacked again by the same group or others with access to its vulnerability.
- Strengthening Cybercrime Every ransom paid funds cybercrime, allowing hackers to invest in better tools and more sophisticated attacks, perpetuating the cycle of attacks on other organizations.
💡 Ethical Perspective: By refusing to pay, you help discourage this criminal activity on a broader scale.
- Legal and Regulatory Issues In some countries, paying ransoms to cybercriminal groups may violate laws related to terrorism financing or economic sanctions. Even where it is not illegal, regulatory bodies may frown upon it.
💡 Legal Impact: The payment could attract fines or additional penalties if linked to illegal activities.
- Safer and More Effective Options Data and system recovery can be achieved with security tools and incident response specialists, such as those from STWBrasil. They work to mitigate damage, identify the attack source, and restore systems without yielding to hackers’ demands.
💡 Practical Tip: Investing in backup and data recovery in advance is far more effective than paying ransoms.
What Should a Lawyer Do in Ransomware Cases?
When a client is a ransomware victim, the lawyer’s role is crucial in managing legal aspects, protecting the client’s interests, and ensuring regulatory compliance.
1. Assess Legal Compliance
- LGPD Compliance: Ensure the company met data protection requirements before the attack and advise on the next steps.
- Mandatory Notifications: Ensure regulatory bodies and affected individuals are notified when necessary.
💡 Practical Example: A lawyer advises a company to report the attack to the National Data Protection Authority (ANPD) within the required LGPD deadline.
2. Hire an Incident Response Team
Why is it important? Resolving a ransomware attack requires experts who can identify the attack’s origin, contain its spread, and recover compromised data.
How STWBrasil Helps:
- Collects digital evidence for investigation.
- Identifies the exploited vulnerability.
- Recovers encrypted systems and data.
- Provides corrective measures to prevent future attacks.
💡 Specialized Service: STWBrasil’s Incident Response team acts quickly to minimize damage and ensure data integrity.
3. Preserve Digital Evidence
Work with forensic specialists to ensure all digital evidence is collected and preserved, especially in case of litigation or legal actions.
How to Prevent Future Ransomware Attacks?
After an attack, implementing measures to reduce future risks is essential. Here are some key strategies:
Box Security: Integrated Protection
- Provides immediate protection with essential tools such as firewalls, VPNs, and access controls.
💡 Recommended Service: STWBrasil’s Box Security is fast to deploy and covers multiple critical security aspects.
Vulnerability Analysis & Continuous Monitoring
- Detects suspicious activity and emerging vulnerabilities, allowing preventive actions before issues escalate.
💡 Recommended Service: STWBrasil’s 24/7 monitoring is a proactive solution against threats.
System & Process Audit
- Maps vulnerabilities, gaps in processes, and systemic issues.
💡 Recommended Service: STWBrasil conducts detailed audits to create a roadmap for improvements.
Annual Pentesting: Digital Stress Test
- Simulates controlled attacks to identify real vulnerabilities.
💡 Recommended Service: STWBrasil’s Pentesting identifies weaknesses in a safe environment.
DLP Implementation (Data Loss Prevention)
- Focuses on preventing data leaks.
💡 Recommended Service: STWBrasil’s DLP solution ensures secure use of sensitive data.
Conclusion: Preparation Is the Best Defense Against Ransomware
Ransomware is a serious threat, but with proper preparation, businesses can significantly reduce their risks and damages. Lawyers and cybersecurity experts play a vital role in mitigating impacts and preventing future incidents.
