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System administrator fighting to stop hacker intrusion in office from ransomware

Amber Poirier, Product Marketing Specialist

What Is Ransomware and How Does It Actually Work?

Ransomware is one of those cybersecurity terms most of us have heard enough times to know it’s bad.

But if I asked you what actually happens during a ransomware attack, could you explain it?

I spend a lot of time learning how technology and security risks affect businesses, and I’ll be the first to admit that ransomware was something I understood at a pretty surface level.

Bad link. Locked files. Ransom demand. Got it.

Except, as I’ve learned, there’s a whole lot that can happen between “they got in” and “your files are encrypted.”

And that’s the part I think more of us need to understand.

An attacker may gain access, move through an organization’s systems, find valuable information, steal data, and only then make their presence known.

So, let’s break down what ransomware is and how an attack can unfold, without turning this into a cybersecurity textbook.

What Is Ransomware?

Ransomware is a type of malicious software that blocks access to data or systems, often by encrypting files and demanding payment to restore access.

But modern ransomware attacks can go further. Attackers may also steal sensitive information and threaten to release it if their demands aren’t met.

That’s when a computer problem can quickly become a business problem.

So, how do we get there?

Step 1: The Attacker Gets In

Every attack has to start somewhere.

Initial access can come through:

Here’s the important part: the ransomware itself may not be the first thing that enters the environment.

An attacker may gain access first and then look for opportunities to go further.

Step 2: They Try to Gain More Access

This is the part I didn’t fully understand when I first started learning about ransomware.

I pictured it as almost instantaneous:

Someone clicks the wrong thing → ransomware appears → everything is locked.

In reality, an attacker may spend time trying to access additional accounts, systems, or administrative privileges before the ransomware is deployed.

That means an organization may have a problem before anyone realizes there’s a problem.

Step 3: They Look for What Matters

Once attackers have access, they may look for the information and systems your organization depends on most.

Customer records. Financial information. Employee data. Shared drives. Operational systems. Backups.

Essentially, they’re looking for an answer to one question:

What would hurt the business most if it suddenly became unavailable or was exposed?

Step 4: Data May Be Stolen

This one surprised me, too.

I always associated ransomware with encryption. If you have good backups, you restore your files and move on… right?

Unfortunately, it’s not always that simple.

In some attacks, information is stolen before systems are encrypted. Attackers can then threaten to release that data unless the organization pays. This tactic is often called double extortion.

It’s also why backups are important, but aren’t a complete ransomware strategy.

A backup may help restore encrypted information. It can’t take back information that’s already been stolen.

Step 5: Systems and Files Are Encrypted

Now we get to the part most people associate with ransomware.

Files become inaccessible. Systems may stop working. Employees can’t reach the information they need.

And suddenly, this isn’t just IT’s problem.

Accounting can’t access files. Customer service can’t reach records. Operations may be interrupted.

A cyberattack becomes a business disruption.

Step 6: The Ransom Demand Appears

Eventually, the attacker makes their presence known.

A ransom demand may offer to restore access to encrypted information in exchange for payment. If data was stolen, there may also be a threat to release it.

And even if a ransom is paid, that doesn’t mean everything instantly goes back to normal.

Systems may still need to be restored, the incident investigated, security gaps addressed, and affected parties notified when required.

The ransom itself can be only one piece of the total impact.

How Can You Protect Your Business From Ransomware?

I wish there were one anti-ransomware button.

There isn’t.

Ransomware protection works best in layers, including:

  • Security awareness training
  • Multi-factor authentication (MFA)
  • Endpoint and email security
  • Patch management
  • Strong access controls
  • Secure, tested backups
  • Security monitoring
  • Incident response planning

No single layer eliminates every risk.

The goal is to make it harder for an attacker to get in, harder to move through the environment, and easier for your organization to respond and recover.

The Part That Matters Most

The more I’ve learned about cybersecurity as a product marketer, the more I’ve realized I don’t need to understand every technical detail to understand why it matters.

And neither do you.

What we do need to understand is the business impact.

Ransomware isn’t just a technology problem because a computer gets encrypted. It’s a business problem because employees may not be able to work, sensitive information may be exposed, customers may be affected, and operations can grind to a halt.

That’s why I’d move the conversation beyond:

“Do we have antivirus?”

And start asking:

“If something gets through, how prepared are we?”

You don’t have to be a cybersecurity expert to start there.

Ask whether your organization uses MFA. Whether employees receive security awareness training. Whether systems are patched. Whether backups are protected and tested.

And one of the biggest questions:

Would we know what to do if ransomware was discovered tomorrow morning?

If you’re not confident in the answer, that’s a good place to start.

Concerned About Your Cybersecurity?

Applied Innovation can help you review your current technology environment, identify potential security gaps, and build a cybersecurity strategy around your organization’s needs.

Not sure how prepared your business is for ransomware? Explore our IT and cybersecurity services, or connect with our team to talk through your current security environment and where you may have gaps.