What is Ransomware?

Ransomware has evolved into a relentless, sophisticated cybersecurity threat that demands urgent attention from MSPs and IT professionals. Understanding ransomware, from how it operates to how you can prevent and respond to attacks, is essential for safeguarding your clients’ networks and data.

This guide provides a thorough breakdown of ransomware’s definition, its methodology, and actionable defenses, along with expert tips on how to handle a ransomware breach.

Ransomware Definition and Overview

Ransomware is a type of malware designed to encrypt files or lock users out of their systems until a ransom is paid. Attackers often demand payment in cryptocurrencies, such as Bitcoin, to maintain anonymity.

MSPs and IT departments need to be particularly vigilant about two main types of ransomware. Locker ransomware blocks access to an entire system, while crypto ransomware encrypts sensitive files and data, rendering them unusable.

Many modern attacks combine these tactics with a method known as double extortion, where sensitive data is stolen before being encrypted, with attackers threatening to release it publicly unless the ransom is paid.

How Ransomware Works

Ransomware attacks follow a structured process to infiltrate and cripple systems effectively. Here’s how it works:

1. Delivery & Infection

Ransomware often spreads via phishing emails, malicious attachments, remote desktop vulnerabilities, or compromised websites. Attackers may also use exploit kits, which target software vulnerabilities, or malvertising, which delivers malware through malicious ads, to distribute ransomware.

2. Payload Execution

Once delivered into a system, the malware executes its payload. For crypto ransomware, this includes encrypting critical files such as documents, databases, or even entire server directories.

3. Ransom Demand

The victim receives a ransom note, typically with an ultimatum for payment (e.g., “Pay within 72 hours, or your files will be deleted forever”). Additionally, victims may face threats that stolen data will be sold or leaked to the public unless payment is made.

4. Exploitation of Panic

Psychological pressure, including timers, pop-ups, and countdowns, is employed to coerce victims into swift payment before considering alternatives.

How Ransomware Spreads

Once ransomware infiltrates a system, it can move laterally and infect other devices within the network. Here’s how it propagates:

  • Phishing Emails: Malicious attachments or links trick users into downloading malware.
  • RDP Exploits: Poorly secured RDP connections open the door to attacks.
  • Network Propagation: Ransomware scans for vulnerable endpoints and spreads across shared drives.
  • USB Drives: Malware-laden USBs are another common method to spread infection.
  • Malvertising: Even legitimate websites can host compromised ads leading to ransomware downloads.

Why It Matters for MSPs and IT Professionals

Ransomware isn’t just a technological hurdle; it’s a business-critical challenge. A single breach can compromise client trust and lead to lost contracts. It can also result in expensive data recovery efforts and prolonged downtime, adding significant costs to a company. Additionally, such an incident can harm your reputation, especially if your preparedness is called into question.

For MSPs, the risks are even greater. Managing multiple clients means that an attack on one endpoint can quickly spread across the entire ecosystem, putting all clients at risk.

Spotting Red Flags Early

Recognizing the signs of a ransomware attack is crucial to minimizing damage. Some warning signs include files that you cannot access or that have strange extensions. You might see pop-up ransom demands or messages on your screen. You may also notice your system slowing down or having performance problems.

Advanced endpoint security tools can assist MSPs and IT teams by monitoring for such anomalies in real-time.

How to Defend Against Ransomware

Ransomware prevention requires a multi-layered approach to cybersecurity. Key defenses include:

1. User Training

Since human error is a leading cause of ransomware attacks, conduct regular training for employees and clients. Teach them:

  • How to recognize phishing attempts.
  • The dangers of clicking on unverified email links.
  • The importance of reporting suspicious activity promptly.

2. Patch Management

Outdated software and systems are prime targets for exploitation. Regularly patch and update all applications, firmware, and operating systems to safeguard against known vulnerabilities.

3. Implement Endpoint Detection and Response (EDR)

Deploy advanced EDR tools, such as N‑able EDR, to provide real-time monitoring, identify suspicious activity, and isolate infected endpoints to stop ransomware from spreading.

4. Backup and Disaster Recovery

Perform regular, offline backups of critical data. Utilize solutions like Cove Data Protection, ensuring your clients have immutable backups that ransomware cannot access or encrypt. Test recovery processes periodically to ensure quick restoration during an incident.

What To Do During an Attack

Despite best efforts, breaches can still occur. Here’s how to act swiftly and minimize impact:

1. Isolate Affected Systems

Immediately remove infected systems from the network to curb the spread. Disconnect all wireless networks, Bluetooth connections, or any similar peripherals.

2. Assess the Damage

Identify the scope of the attack by checking how far the ransomware has spread. Look for encrypted data, unusual file modifications, or ransom notes.

3. Prioritize Recovery

If clean backups exist, restore them only after ensuring all remnants of ransomware are removed from the system. Overwriting contaminated files without isolating malware could compound damages.

4. Communicate Transparently

Notify stakeholders of the attack promptly while outlining the remediation steps underway. Transparent communication can help mitigate reputational fallout during crises.

5. Work With Authorities

Report the attack to local law enforcement or government cybersecurity agencies. Sharing attack details helps create industry-wide awareness and prevents further proliferation.

Next Steps to Fortify Your Defenses

Ransomware isn’t going anywhere. But with proactive preparation, MSPs and IT professionals can not only defend against these threats but reduce their impact to near-zero. Equip yourself with tools, training, and policies tailored to combating ransomware effectively.

Want to elevate your cybersecurity efforts? Take your first step by exploring the trusted security solutions from N‑able.

MSP Horizons Report 2025

Find out more

You may find these useful too

Time to put what you learned into action.

Don’t wait for threats to show up. Give your customers the protection they need while reducing your own risk with easy-to-use security tools.