In recent years, with the increasing popularity and growth of the cryptocurrency market, cybersecurity threats have also escalated significantly. One of the most dangerous threats is Ransomware, which plays a particularly hazardous role in the world of cryptocurrencies. In this article, we will explore ransomware, its types, and methods to combat these threats, focusing on its relevance in the cryptocurrency market.

What Is Ransomware?

Ransomware is a type of malware designed to lock or encrypt sensitive files and information on a system. In exchange for restoring access to these files, attackers demand a ransom. Typically, attackers ask victims to pay the ransom in cryptocurrency (such as Bitcoin) to receive the decryption key.

These types of attacks were first reported in Russia but have since become a global threat, affecting companies, government agencies, and even ordinary users in many countries. Therefore, security measures such as regular data backups, using updated security software, and educating users on how to identify attacks have become crucial.

How Does Ransomware Work?

Ransomware attacks usually occur by tricking users into clicking on malicious links or downloading suspicious files. These attacks typically follow several stages:

Infiltration: Ransomware can infiltrate a system through methods such as phishing emails, text messages, downloading software from untrusted sources, or even through hacked websites. Users, due to ignorance or haste, may click on infected links or download and run malicious files.

Encryption: Once inside the system, ransomware quickly encrypts important files and sensitive information. This encryption uses complex algorithms, making the data unrecoverable without the decryption key. Files are converted into inaccessible formats, effectively locking the data.

Ransom Demand: After encrypting the files, the ransomware displays a warning message on the screen, usually containing instructions for paying the ransom. These messages often threaten to delete the data or increase the ransom if payment is not made within a specified time.

Payment in Cryptocurrency: Attackers usually demand payment in cryptocurrency, as it is harder to trace. Failure to pay the ransom may result in the permanent loss of information.

Time Pressure: In some cases, attackers set a deadline for payment, after which the ransom amount may increase, or the data may be deleted. Some ransomware may even refuse to unlock files after payment or ask for more money.

The History of the First Ransomware Attack

The first known ransomware attack occurred in 1989 and was carried out by Dr. Joseph Popp, a researcher on AIDS. He distributed 20,000 floppy disks to AIDS researchers in over 90 countries. These disks contained software that Popp claimed was designed to analyze the risk of contracting AIDS. However, the software was actually malware, known as the AIDS Trojan or PC Cyborg.

The malware would secretly activate and, after the system had been turned on 90 times, display a message demanding a ransom. The message included instructions to pay $189 to a charity fund in Panama to restore access to the system. This attack is considered the first known example of ransomware in history.

Ransomware in 2022

According to the 2022 IC3 (Internet Crime Complaint Center) report in the United States, the number of ransomware attacks has sharply increased. The report stated that 2,385 companies in the U.S. were targeted by ransomware, resulting in costs exceeding $34.3 million for these companies. However, this statistic only includes reported cases, and many ransomware attacks go unreported.

In 2022, out of the 2,385 victimized companies, 870 reports were related to attacks on critical infrastructure. These attacks mainly focused on sectors such as public health and healthcare. Most attacks targeted the healthcare sector, while the fewest were aimed at defense bases.

By understanding the workings and history of ransomware and adopting preventive measures, both individuals and organizations can better protect their systems and data against this ever-growing cybersecurity threat.

Types of Ransomware

Ransomware operates in various ways, and depending on the level of damage and attack methods, it can be divided into three main types. Below, we discuss these types and their characteristics:

Scareware

Scareware is malicious software that uses social engineering techniques to instill fear and panic in the user, forcing them to perform actions desired by the attacker. This type of ransomware typically does not cause real damage to the system but tries to pressure the victim by displaying fake warning messages.

Scareware often appears as pop-up ads claiming that the user's system is infected with malware and suggesting certain actions (such as installing fake software or paying a fee) to resolve the issue. The aim is to scare the user into paying, without actually harming the system. In many cases, these attacks successfully deceive users into making small payments.

Screen Lockers

In this type of ransomware, the attacker locks the victim’s screen, preventing access to the system. The message displayed often accuses the user of illegal activities and demands a fine to restore access.

The screen is completely locked, and the victim cannot access the desktop or any applications. This type of ransomware usually includes a message that appears legal, encouraging the user to pay the fine. Screen lockers typically target home users and small businesses, who may choose to pay the ransom for quick system recovery.

Encryption RansomwareThis type of ransomware encrypts the victim’s files and data using advanced encryption algorithms. The attacker then demands a ransom, claiming they will provide the decryption key once the payment is made.

Encryption ransomware infects the victim’s system and encrypts sensitive files. Afterward, the victim receives a message stating they must pay a certain amount, usually in cryptocurrency like Bitcoin, to regain access to their files. This type of ransomware often targets large organizations, hospitals, and financial institutions, which store critical and sensitive data and are more likely to pay larger ransoms. Unfortunately, even after payment, there is no guarantee the decryption key will be provided.

Notable Ransomware

Below are some of the most notorious ransomware that have carried out major attacks in recent years:

LOCKBIT Ransomware

One of the most powerful ransomware, identified in 2020, LOCKBIT uses the AES-256 encryption algorithm and can quickly encrypt files. It uses both automated and targeted attacks. Due to its complex capabilities, it became one of the most destructive and widespread ransomware in 2022 and 2023, impacting various organizations, including large businesses globally, and causing significant financial losses.

ALPHV (BlackCat) Ransomware

ALPHV is one of the first ransomware written in the Rust programming language, introduced in 2021. This ransomware can run on Windows, Linux, and Mac operating systems. In addition to locking files, it threatens victims with a DDoS attack if they refuse to pay. It was one of the top five ransomware in attacks on large businesses in 2022 and 2023.

HIVE Ransomware

HIVE has become one of the most infamous ransomware in recent years, primarily targeting Linux-based systems. This ransomware has particularly focused on sensitive businesses and institutions. In 2023, the FBI managed to hack into HIVE's servers and provide decryption keys to its victims. HIVE was responsible for numerous significant attacks on hospitals and healthcare institutions.

CryptoWall Ransomware

CryptoWall was one of the most famous ransomware of the 2010s, highly active in 2014 and 2015. This ransomware was one of the earliest widespread examples that encrypted files and forced victims to pay a ransom. According to Kaspersky Labs, 58% of ransomware attacks during this period were carried out by CryptoWall.

WastedLocker Ransomware

Designed by the criminal group Evil Corp, WastedLocker became one of the most prominent cyber threats since 2007. This ransomware is specifically tailored to attack large companies, targeting victims by name for more focused attacks. One notable victim of this ransomware was Garmin, which faced a WastedLocker attack in 2020, with a $10 million ransom demand.

DoppelPaymer Ransomware

DoppelPaymer is a highly destructive ransomware designed to target businesses and specific industries. It infects all computers in an organization, adding a .locked extension to the files, rendering them inaccessible. Victims are threatened that if they attempt to recover the encrypted files or alter ransom messages, their data will be permanently lost.

PonyFinal Ransomware

A Java-based ransomware identified by Microsoft’s security team in 2020, PonyFinal primarily targets hospitals and healthcare services. It infiltrates systems through brute-force attacks on server management systems. Known for its human-operated attacks, this ransomware exploits system vulnerabilities to threaten victims.

REvil Ransomware

REvil, one of the most dangerous ransomware, was first identified in April 2019. It uses phishing techniques and exploits system vulnerabilities to infiltrate networks. If the ransom is not paid, attackers threaten to publish stolen data on public websites. REvil employs a countdown timer to pressure victims into quick payment and has been involved in many major cyberattacks.

By understanding the different types of ransomware and their characteristics, organizations and individuals can take steps to protect their systems and data from this growing threat.

Ways to Prevent Ransomware Attacks

To prevent ransomware from entering your system and reduce the associated risks, following security principles and using protective tools is essential. Below are the key methods for avoiding ransomware infections:

Avoid Opening Spam Emails or Links Within Them

Many ransomware attacks are delivered through spam and phishing emails. Users should avoid opening emails from unknown senders or messages containing suspicious links.

Do Not Click on Suspicious Links

Links from untrusted sources may lead to malicious sites. Never click on links sent from unknown sources.

Avoid Downloading Files from Untrusted Websites

Downloading files from untrusted and unknown websites is one of the main ways ransomware enters systems. Always download software and files from reliable, trusted sources.

Do Not Respond to Emails Requesting Personal Information

Attackers may send emails that appear legitimate, asking for your personal information. Never respond to such emails requesting sensitive information like usernames, passwords, or bank account details.

Avoid Opening Attachments in Suspicious Emails

Many ransomware attacks are spread through email attachments. Avoid opening files that appear suspicious or are sent by unknown sources.

Regular Backups

One of the most important methods to prevent damage from ransomware is regular backups of critical data. Having backups allows you to recover your information, even if attacked by ransomware.

Install and Update Antivirus Software

Using up-to-date antivirus and security software is one of the best ways to prevent ransomware from entering your system. Ensure you are using reputable and updated security software.

Disable and Limit Unnecessary Script Execution

Many ransomware attacks exploit malicious scripts to infiltrate systems. Limiting the execution of unnecessary scripts can help prevent ransomware infiltration.

Use Regular System Updates

Regular updates of operating systems and software are one of the most effective methods to protect systems from security vulnerabilities. Ensure that your servers and clients are always up to date.

Disable Remote Desktop Services When Not Needed

Remote Desktop Service (RDP) is one of the critical weaknesses exploited by ransomware. If you don’t need it, disable this service or limit its access.

Avoid Clicking on Suspicious Ads

Pop-up ads and banner advertisements may contain links to ransomware. Avoid clicking on ads from unknown sources.

How to Secure Your Computer for Cryptocurrency Trading

To protect your system from ransomware, especially to prevent the theft of cryptocurrencies, adhering to security practices at both the hardware and software levels is crucial. Here are key steps to secure your system against such attacks:

Protect Private Keys and Recovery Phrases

Private keys and recovery phrases are the most critical pieces of information for your digital assets. Never store them on internet-connected devices. Use cold wallets such as hardware wallets, which are not connected to the internet, to securely store private keys. Write down your recovery phrases on paper and store them in a secure place like a safe.

Regular Data Backups

Regularly back up your digital wallets and sensitive data. These backups should be stored on offline devices or external hard drives and kept in secure locations. Encrypt backup files for added security.

Install and Update Antivirus and Security Software

Install reliable antivirus software and keep it updated to prevent malware and ransomware attacks. Consider using anti-ransomware software that is specifically designed to block ransomware attacks.

Use Hardware Wallets

Using hardware wallets provides an additional layer of security. These devices store your private keys offline, making them less vulnerable to ransomware attacks.

Enable Two-Factor Authentication (2FA)

Enable two-factor authentication on all cryptocurrency accounts and connected emails. Use authentication apps like Google Authenticator or Authy to add an extra layer of security.

Avoid Clicking on Suspicious Links and Files

Never click on suspicious links or files from unknown sources. Phishing emails or messages claiming to be from cryptocurrency exchanges are common ways ransomware spreads.

Use Firewalls

Activate your system's firewall and optimize its settings to block unauthorized access to your network.

Limit Access

Restrict access to sensitive information and systems involved in cryptocurrency transactions. Only you should have access to your digital wallets and related accounts.

Awareness of Social Engineering Attacks

Hackers often use social engineering tactics to deceive users. Be cautious of emails and messages asking for personal information. Never share sensitive details like private keys or recovery phrases with anyone.

Regular System and Software Updates

Keep your operating system and all cryptocurrency-related software regularly updated to prevent security vulnerabilities.

Use Strong and Unique Passwords

Create strong, complex passwords for cryptocurrency accounts, and never use the same password for multiple accounts.

Monitor Accounts Continuously

Regularly check your cryptocurrency accounts for any suspicious activity. Immediately report any unusual actions.

Create a Dedicated System for Cryptocurrency Transactions

If possible, set up a dedicated device or system solely for cryptocurrency transactions and avoid using it for daily tasks.

Conclusion:

In this article, we explored ransomware as one of the most destructive forms of cyberattacks. Ransomware encrypts the victim's data and demands a ransom in exchange for unlocking it, making it a prevalent method of digital extortion. Preventing ransomware is significantly simpler and less costly than recovering from its effects. By following security measures, using antivirus software, and keeping systems updated, you can protect yourself from the serious damage caused by ransomware. We hope the information in this article helps you safeguard your digital assets and personal information from cyber threats.