What Is Ransomware? How It Works and How to Prevent It

Ransomware is a type of malicious software that locks devices or encrypts files, preventing businesses from accessing important data. Cybercriminals use these attacks to demand payment, and some also threaten to publish stolen information if their demands are not met.

For businesses, a ransomware attack can disrupt operations, expose confidential data and create significant recovery challenges. Understanding how ransomware works, recognising potential warning signs and implementing appropriate security measures can help reduce these risks.

This guide explains the different types of ransomware, how attacks happen, practical ransomware prevention strategies and what businesses should do if their systems are compromised.

What Is Ransomware?

Ransomware is a form of malware designed to deny access to computers, networks or data until a ransom is demanded. Attackers typically encrypt files so that the organisation cannot open them without the required decryption key.

In some cases, criminals also steal sensitive information before encrypting systems. They may threaten to publish or sell the stolen data if the victim refuses to pay. This is commonly known as double extortion.

Ransomware can affect businesses of all sizes. Small businesses may have fewer resources for security and recovery, while larger organisations can face more complex challenges involving multiple systems, locations and departments.

Common targets include:

  • Business documents, spreadsheets and shared files.
  • Customer and employee information.
  • Financial records and accounting systems.
  • Company servers and network storage.
  • Cloud applications and synchronised business data.
  • Backup systems and recovery infrastructure.

A ransomware attack does not always begin with an obvious warning. Criminals may gain access to a network before activating the malware, giving them time to explore systems, obtain credentials or identify valuable information.

For this reason, ransomware protection involves more than installing antivirus software. Businesses need a combination of preventive controls, monitoring, secure backups and a clear recovery plan.

2. How Does a Ransomware Attack Work?

A ransomware attack can involve several stages. The exact process varies depending on the attackers, their methods and the systems they target.

Stage 1: Initial Access

Attackers first need a way into a device, account or business network. Common entry points include phishing emails, stolen passwords, exposed remote access services and unpatched software vulnerabilities.

For example, an employee may open a malicious attachment or enter their credentials on a fraudulent sign-in page. An attacker could then use the compromised account to attempt further access.

Stage 2: Gaining Access to Systems

Once inside, attackers may try to expand their access, identify valuable files and locate systems that could help them control a wider part of the network.

They may search for administrator accounts, shared folders, financial information and backup infrastructure. Weak access controls can make it easier for an attacker to move beyond the initially compromised device.

Stage 3: Stealing or Encrypting Data

Depending on the attack, criminals may copy sensitive information before encrypting files. They may also attempt to disable security tools or interfere with backup systems to make recovery more difficult.

When ransomware executes, affected files can become inaccessible. The impact may extend across connected devices, shared drives and business systems.

Stage 4: Demanding a Ransom

Victims typically receive a ransom note explaining how to contact the attackers and make payment. Criminals may demand cryptocurrency and provide instructions that claim payment will restore access to the encrypted files.

However, paying does not guarantee that files will be recovered or stolen information will remain private.

Stage 5: Business Disruption and Recovery

The organisation must determine which systems are affected, contain the incident, investigate potential data exposure and restore essential operations.

Depending on the scale of the attack, recovery may involve rebuilding devices, restoring clean backups, resetting credentials and checking systems for remaining malicious activity.

The key takeaway: Preventing initial access is important, but businesses must also prepare for the possibility that an attacker gets through. Strong recovery arrangements can significantly reduce the impact.

How BRAINTRIPS Supports Business Cybersecurity and SaaS Security

Ransomware protection requires a joined-up approach to business technology, user access, data security and recovery planning. Businesses using cloud applications also need to understand how their SaaS data is protected and what options are available if information is deleted, corrupted or compromised.

BRAINTRIPS provides IT and cybersecurity solutions to help businesses strengthen their digital environments and protect important business data. Through its SaaS security offering and partnership with Spin.AI, BRAINTRIPS supports organisations looking to improve their approach to SaaS data protection and security.

Depending on your business requirements, relevant areas include:

  • SaaS data protection: Review how important information in supported cloud applications is protected and how it can be recovered when needed.
  • Microsoft 365 and cloud security: Assess account protection, access controls and data recovery requirements across business cloud environments.
  • Cybersecurity improvements: Identify practical opportunities to strengthen security practices across business systems and applications.
  • Backup and recovery planning: Evaluate whether existing backup arrangements support business continuity and provide suitable recovery options.

Cloud applications can simplify business operations, but organisations should not assume that built-in availability, retention or version history features provide every level of protection they need. Their capabilities and limitations depend on the service and configuration.

What Are the Different Types of Ransomware?

Understanding the main types of ransomware can help businesses recognise how attacks may affect their systems and data.

Crypto-Ransomware

Crypto-ransomware encrypts files so that users cannot access their contents without an appropriate decryption key. Documents, databases, images and other business files may become unusable.

The attacker then demands payment in exchange for a claimed way to restore access. Recovery depends on factors such as the availability of clean backups, the extent of the damage and whether a reliable decryption method exists.

Locker Ransomware

Locker ransomware prevents users from accessing a device or its interface. Unlike file-encrypting ransomware, it may focus on locking access to the system rather than encrypting every file individually.

This can still cause major disruption if employees cannot access the applications and resources they need to work.

Double-Extortion Ransomware

Double-extortion attacks combine data theft with encryption. Attackers threaten to publish or sell stolen information if the victim does not pay.

Restoring files from backups may resolve the encryption problem, but it does not automatically address the exposure of data that criminals have already copied.

Ransomware Targeting Businesses and Networks

Some ransomware operations target entire organisations rather than individual devices. Attackers may seek access to servers, shared drives, administrative accounts and other connected systems.

A compromised account with extensive permissions can increase the potential reach of an attack. Businesses should therefore limit unnecessary access and protect administrative credentials carefully.

Ransomware-as-a-Service

Ransomware-as-a-Service, or RaaS, is a criminal business model in which ransomware developers make their tools or infrastructure available to other attackers, often in return for a share of the proceeds.

This model can allow different criminal groups to carry out attacks without developing all the malware and supporting infrastructure themselves.

Regardless of the type, businesses should focus on reducing the opportunities attackers have to enter systems, move across networks and disrupt recovery.

What Are the Common Signs of a Ransomware Attack?

Early detection can help an organisation respond before an incident spreads further. However, ransomware may remain unnoticed until files become inaccessible or a ransom note appears.

Warning signs can include:

  • Files will not open: Documents or other files suddenly become inaccessible, or their names and extensions change unexpectedly.
  • Ransom messages appear: A notification demands payment to recover files or threatens to publish information.
  • Unusual system behaviour: Devices become unexpectedly slow, applications stop working or security tools are disabled without a valid reason.
  • Unexpected account activity: Sign-in alerts or administrative changes appear that cannot be explained by normal business activity.
  • Large volumes of file changes: Shared folders or network drives show unusual file modifications, deletions or access patterns.
  • Security alerts increase: Endpoint protection or monitoring tools identify suspicious activity across devices or accounts.
  • Backups become unavailable: Backup jobs fail unexpectedly, recovery points disappear or administrators cannot access backup systems.

These signs do not always indicate ransomware. Technical failures and legitimate system changes can cause similar symptoms.

However, unexplained changes affecting multiple devices, files or accounts should be investigated promptly. If a ransomware attack is suspected, follow your incident response process rather than attempting an improvised fix.

How to Prevent Ransomware Attacks

Effective ransomware prevention combines technical safeguards, secure business processes and employee awareness. No single control eliminates every risk, so businesses should use several layers of protection.

Keep Software and Systems Updated

Attackers may exploit known vulnerabilities in operating systems, applications, network devices and remote access tools.

Apply security updates promptly, maintain an inventory of business systems and prioritise vulnerabilities that create significant exposure. Unsupported software should be upgraded or replaced wherever possible.

Use Multi-Factor Authentication

Multi-factor authentication (MFA) adds an additional verification step when someone signs in to an account.

Enable MFA for business email, cloud applications, remote access and administrator accounts. Where available, consider phishing-resistant methods such as passkeys or hardware security keys.

MFA does not prevent every attack, but it can make stolen passwords less useful to criminals.

Strengthen Email Security

Phishing emails are a common route into business environments. Messages may contain malicious attachments, fraudulent sign-in links or requests designed to obtain credentials.

Use suitable email filtering and threat detection controls, and configure email authentication measures such as SPF, DKIM and DMARC where appropriate.

Train employees to verify unusual requests, avoid suspicious downloads and report unexpected messages.

Restrict User and Administrator Permissions

Employees should have access only to the systems and information necessary for their roles. Avoid using administrator accounts for routine tasks and review privileged access regularly.

Remove unused accounts, disable access promptly when staff leave and protect administrator credentials with strong authentication.

These measures can limit what an attacker can do if a standard employee account is compromised.

Secure Remote Access

Remote access services can create opportunities for attackers when they are exposed unnecessarily or protected by weak credentials.

Require strong authentication, restrict access to authorised users and devices, and monitor unusual login activity. Disable remote access services that are no longer needed.

Businesses should also review remote access permissions for external suppliers and service providers.

Use Endpoint Protection and Monitoring

Endpoint security tools can help detect malicious files, suspicious processes and other indicators of compromise.

Businesses should ensure that protection is enabled and updated across supported laptops, desktops and servers. Monitoring can also help security teams investigate unusual activity and identify potential threats.

Endpoint protection is most effective as part of a broader security strategy that includes access controls, patching, employee training and recovery planning.

Train Employees to Recognise Cyber Threats

Employees should understand how phishing, malicious attachments, fraudulent downloads and impersonation attempts can lead to ransomware.

Provide regular training and clear procedures for reporting suspicious activity. Encourage employees to report mistakes quickly, as early reporting can give the security team more time to contain a potential incident.

Training should be relevant to the actual tools and processes employees use every day.

Protect Cloud Applications and SaaS Data

Businesses often rely on cloud applications for email, collaboration, document storage and customer information. These services need appropriate identity controls, permissions, monitoring and data protection arrangements.

Review which applications store critical information, who can access it and how data can be restored following accidental deletion or malicious activity.

For example, organisations using Microsoft 365 or Google Workspace should understand the difference between service availability, retention features and independent backup capabilities.

Suitable SaaS backup and security solutions can help address data protection and recovery requirements, depending on the applications and configuration involved.

Create and Test Secure Backups

Backups are a central part of ransomware recovery, but they must be protected from the same incident that affects the primary systems.

A strong backup strategy should include:

  • Regular backups of important business data.
  • Copies stored separately from the main production environment.
  • Access controls and multi-factor authentication for backup administration.
  • Protection against unauthorised deletion or modification.
  • Regular restoration tests to confirm that recovery works.
  • Checks that restored data and devices are safe before reconnecting them to the network.

Do not assume that a successful backup job guarantees a successful recovery. Test how long restoration takes and whether the recovered information is complete enough to support essential operations.

Develop an Incident Response Plan

An incident response plan establishes who should act, how systems will be isolated, how decisions will be made and how the organisation will communicate during a security incident.

The plan should include contact details that remain accessible if business email or internal systems become unavailable.

Review the plan regularly and conduct exercises so that staff understand their responsibilities before a real attack occurs.

Ransomware Protection: What Should Businesses Prioritise?

Businesses do not necessarily need to implement every possible security product at once. The best starting point is to identify the systems and data that are most important to operations, then address the biggest risks.

A practical ransomware protection checklist includes:

Security measure Business objective
Multi-factor authentication Reduce the risk of unauthorised account access
Security updates Address known software vulnerabilities
Email and endpoint protection Detect or block common attack methods
Least-privilege access Limit the reach of compromised accounts
Secure backups Improve the ability to recover important data
SaaS data protection Support recovery of critical cloud application data
Employee training Reduce the risk of successful social engineering
Monitoring and alerts Help identify suspicious activity
Incident response plan Coordinate containment and recovery
Recovery testing Confirm that business-critical systems can be restored

Priorities should reflect the organisation’s size, technology, regulatory obligations and risk profile. Businesses handling sensitive customer data or relying on systems that must remain continuously available may need additional safeguards.

A useful next step is to document which services must be restored first, who owns each recovery task and how long the business can operate without its critical systems.

Ransomware Recovery: What to Do After an Attack

If ransomware affects your business, a structured response can help limit further damage and support a safer recovery.

Step 1: Isolate Affected Devices

Immediately disconnect affected computers and devices from network connections, including wired, wireless and mobile connections, where safe to do so.

Follow your incident response procedures and seek appropriate technical support. Avoid reconnecting affected systems simply to see whether they are working again.

Step 2: Notify Your IT or Security Team

Escalate the incident promptly. If your organisation has an incident response provider, contact them using verified contact details.

Record what happened, when it was discovered and which systems appear to be affected. Preserve relevant logs, ransom notes and other evidence where possible.

Step 3: Protect Other Accounts and Systems

Your security team should assess whether accounts or credentials have been compromised and determine how to secure them.

Password resets, session revocation and access changes may be necessary, but these actions should be coordinated to avoid disrupting recovery or leaving other attacker-controlled access in place.

Step 4: Assess the Scope of the Incident

Determine which devices, applications, servers and data have been affected. Investigate whether information may have been stolen and whether the attacker still has access to the environment.

The organisation should also assess its legal, contractual and regulatory reporting obligations.

Step 5: Restore from Verified Clean Backups

Before restoring systems, confirm that backups are safe and suitable for recovery. Restoring compromised data or reconnecting an infected device can allow the attack to continue.

Depending on the incident, recovery may require rebuilding systems, reinstalling software, applying security updates and restoring data from clean copies.

Step 6: Report the Incident Where Required

UK organisations can use the National Cyber Security Centre’s Report a Cyber Incident service to identify the appropriate reporting route and available support.

If personal data has been affected, assess whether the incident must be reported to the Information Commissioner’s Office. Other reporting duties may also apply depending on the organisation and circumstances.

Step 7: Review and Improve Security

After recovery, investigate how the attack occurred and which controls failed or were missing.

Update access permissions, address vulnerabilities, improve monitoring and revise the incident response plan. Use the findings to reduce the likelihood and potential impact of a future incident.

The UK National Cyber Security Centre recommends preparing for disruptive cyber incidents and using appropriate technical support to manage recovery. Its ransomware guidance provides further advice for affected organisations.

Should You Pay a Ransomware Demand?

Paying a ransom is a serious decision and should not be treated as a guaranteed route to recovery.

There is no assurance that attackers will provide a working decryption key, return stolen information or refrain from targeting the organisation again. Paying can also fund criminal activity and may create legal or sanctions-related risks.

The UK Government does not condone ransomware payments. Organisations should seek appropriate incident response, legal and insurance advice before making decisions about a ransom demand.

Businesses should focus on containing the attack, understanding the extent of the damage, protecting affected people and restoring operations safely.

Strong backups and a tested recovery plan can reduce dependence on attackers as a means of regaining access to data.

For support with business IT security and SaaS data protection, you can count on the BRAINTRIPS’ cybersecurity experts and assess which improvements best fit your organisation’s needs. Schedule your free consultation with BT today. 

Conclusion

Ransomware can disrupt business operations, make critical information inaccessible and expose sensitive data. Although no security strategy can eliminate every threat, businesses can significantly improve their resilience through layered protection and careful preparation.

Prioritise secure authentication, software updates, restricted access, employee awareness, protected backups and tested recovery procedures. Review cloud applications as well as traditional business systems, since both can play an important role in storing and accessing critical information.

Most importantly, prepare for an incident before one occurs. Businesses that understand their risks, know how to respond and can restore clean data are better positioned to limit disruption and recover safely.

Frequently Asked Questions 

What is ransomware in simple terms?

Ransomware is malicious software that locks a device or encrypts files so the owner cannot access them normally. Criminals then demand payment, often in cryptocurrency, in exchange for a claimed way to restore access. Some attacks also involve stealing data and threatening to publish it.

How does a ransomware attack start?

Ransomware attacks may begin through phishing emails, stolen credentials, exposed remote access services or unpatched software vulnerabilities. Once attackers gain access, they may attempt to expand their control, steal data and encrypt files across affected systems.

How can businesses prevent ransomware?

Businesses can reduce ransomware risk by applying security updates, enabling multi-factor authentication, securing remote access, training employees, restricting permissions and using suitable endpoint and email protection. Regularly tested backups and an incident response plan are also essential.

Does antivirus software protect against ransomware?

Antivirus and endpoint security tools can detect or block many malicious files and activities, but they cannot guarantee protection against every ransomware attack. Businesses should combine endpoint security with access controls, monitoring, secure backups and other preventive measures.

Can ransomware affect cloud applications?

Yes. Cloud applications can be affected when attackers compromise user accounts, misuse permissions or exploit weaknesses in connected systems. Data may also be deleted, encrypted or otherwise made unavailable. Appropriate identity security, access controls, monitoring and backup arrangements can help reduce the impact.

Can ransomware be removed without paying?

In some cases, organisations can recover by containing the incident, rebuilding affected systems and restoring verified clean backups. Decryption tools may also be available for certain ransomware variants. However, recovery is not always straightforward, and paying a ransom does not guarantee that files will be restored.

Should a business pay a ransomware demand?

The decision requires careful assessment, but payment does not guarantee data recovery or prevent stolen information from being published. UK authorities do not endorse ransomware payments. Businesses should obtain appropriate technical, legal and insurance advice and consider applicable legal restrictions before making any decision.

What is the difference between ransomware prevention and recovery?

Ransomware prevention focuses on reducing the likelihood of an attack through measures such as patching, secure authentication, employee training and endpoint protection. Ransomware recovery focuses on containing an incident, restoring clean data, rebuilding systems and returning the business to normal operations.

Can BRAINTRIPS help businesses improve ransomware protection?

BRAINTRIPS provides IT and cybersecurity solutions, including SaaS security through its Spin.AI partnership. These services can help businesses review SaaS data protection and broader technology security needs. The appropriate approach depends on the organisation’s systems, requirements and existing security controls.