TLDR:
Ransomware is malicious software that encrypts a victim’s data or systems and demands payment (typically in cryptocurrency) for decryption keys. Modern ransomware attacks frequently combine encryption with data exfiltration (“double extortion”), threatening publication of stolen data if ransom is not paid. Ransomware is among the most costly and disruptive cybersecurity threats, affecting organizations of all sizes.
Threat Landscape
The ransomware ecosystem has industrialized through Ransomware-as-a-Service (RaaS) models, where developers license malware to affiliates who conduct attacks. Major ransomware groups operating in 2024-2026 include LockBit (despite law enforcement actions), BlackCat/ALPHV, Cl0p, Black Basta, and many others. Initial access typically comes through phishing, exploitation of unpatched vulnerabilities, RDP brute-forcing, or compromised supply chain partners. Cl0p’s exploitation of MOVEit Transfer in 2023 affected thousands of organizations.
Incident Response
Effective ransomware response requires preparation: incident response plans defining roles and decision authority, offline/immutable backups verified through periodic restore tests, network segmentation limiting lateral movement, identity and access management with MFA, endpoint detection and response (EDR), and pre-established relationships with incident response firms, legal counsel, and law enforcement. When an attack occurs, key decisions include: containment vs. complete shutdown, communication with stakeholders (employees, customers, regulators, media), engagement with attackers, and whether to pay ransom.
Legal Implications of Payment
Ransom payments raise significant legal issues: US OFAC sanctions prohibit payments to designated entities or individuals (many ransomware groups have OFAC connections), EU and Turkish sanctions create similar restrictions, breach notification obligations under GDPR/KVKK/state laws are independent of payment decisions, insurance coverage may not extend to ransom payments, and payment may incentivize future attacks. NIS2, financial regulators, and increasingly insurance markets require organizations to demonstrate ransomware-specific resilience. Founders should work with cyber counsel and incident response specialists to develop a tested response plan before facing an incident.