Every 11 seconds, a ransomware attack happens. This means about 3 million unique attacks occur in a year. Ransomware has grown a lot from its start in 1989, when Joseph L. Popp sent out 20,000 floppy disks with the AIDS Trojan. He asked for just $189 to unlock files.
Cybercriminals have gotten better over time. They’ve learned to use new technologies and find weak spots in systems. Early versions like GPCode in 2004 asked for as little as $20. But by 2013, CryptoLocker made $27 million in just two months.
The rise of cryptocurrencies and Ransomware-as-a-Service (RaaS) has made ransomware more popular. This has made it a big problem for organizations.
Ransomware attacks can really hurt a company. 66% say they lost a lot of money, and 53% saw their brand suffer. Some companies lost top leaders or had to fire employees because of the attack.
Now, ransomware is getting even worse. It’s using double extortion tactics and going after valuable data. Companies need to be careful and use strong protection to keep their data safe.
The Origins of Ransomware: The AIDS Trojan
In 1989, Joseph Popp, a Harvard-educated biologist, created the AIDS Trojan, also known as PC Cyborg. He sent 20,000 infected floppy disks to the World Health Organization’s AIDS conference. This reached about 90 countries.
The malware encrypted file names and hid directories. It demanded $189 for a one-year license or $378 for lifetime access. Today, these amounts would be around $400 and $800. Only a few victims paid, but it marked the start of ransomware.
The AIDS Trojan’s creation led to the Computer Misuse Act of 1990 in the UK. Despite its early success, ransomware attacks were rare until the 2000s. This was because collecting payments anonymously was hard.
The Early Days of Ransomware Evolution (2004–2007)
The early 2000s saw a big change in ransomware. GPCoder, which started in 2004-2005, was a big step up. It encrypted important files and asked for $200, paid through Western Union or text messages.
In 2005-2006, Archievus came along with RSA encryption. It focused on files in the “My Documents” folder. Though it needed a special key for decryption, it was a start for stronger encryption in future ransomware.
2007 was the year locker ransomware became a big problem. It locked users out of their devices, mainly targeting Russians. It used scary tactics like adult images to get money, showing how attackers were getting creative with their demands.
Ransomware kept getting worse, and its early days were just the beginning. The use of RSA encryption and different payment methods made it a bigger threat. This set the stage for even more dangerous ransomware in the future.
Cryptocurrencies and the Rise of Ransomware-as-a-Service (RaaS)
In 2010, Bitcoin changed the game for ransomware. It gave attackers a way to pay and get paid without being tracked. This made it easier for cybercriminals to get away with ransom payments.
By 2012, Ransomware-as-a-Service (RaaS) with Reveton ransomware came along. It made it simple for newbies to start ransomware attacks. This led to a big jump in ransomware cases, with Reveton making about $400,000 a month at its peak.
RaaS has become a hit among cybercriminals. Groups like Lockbit, REvil, Ryuk, and Egregor use it. This has caused huge problems, like a Las Vegas resort losing $100 million and hackers stealing over 2.5 million medical records.
Scareware, which uses fear to trick people, also grew during this time. Ransomware attacks have gotten smarter. They use strong encryption and often start with phishing emails or software bugs.
CryptoLocker and the Ransomware Revolution (2013-2015)
In 2013, the world of ransomware changed with the arrival of CryptoLocker. This malware, spread by botnets and phishing, used strong encryption to lock files. It demanded payment quickly. By 2015, victims had paid over $27 million, according to the FBI.
In 2014, a global effort took down CryptoLocker’s network. But its impact on future malware was huge. It showed how ransomware was getting smarter, using AES-256 encryption.
From 2013 to 2015, ransomware attacks grew more common and costly. This trend continued, making ransomware a $1 billion industry by 2016. The healthcare sector was hit hard, with many hospitals paying over $100,000 to get their data back.
About 50% of victims paid the ransom, often because they didn’t know what else to do. This lack of knowledge helped ransomware grow even more.
Ransomware attacks got more targeted and complex over time. They often used exploit kits to spread. But, machine learning was found to be better at catching these threats than old methods.
The rise of CryptoLocker marked a big change in ransomware. It led to more advanced attacks and targeted threats in the years that followed.
The Proliferation of Ransomware Strains (2016)
In 2016, ransomware attacks skyrocketed, with many new strains causing huge damage. Locky, a top threat, spread fast through phishing, encrypting files and demanding big ransoms. Petya attacked the Master Boot Record and Master File Table, making systems unusable.
Cerber, TeslaCrypt, and Jigsaw were also major players in 2016. They used different tactics to scare victims into paying, like threatening to delete files or leak personal data. Together, these attacks cost over $1 billion in 2016.
The rise of the Ransom as a Service (RaaS) model in 2016 made it easy for cybercriminals to attack. “Ransom32” and “Stampado” were sold for just $39, making it simple for new attackers to join. This made 2016’s attacks even bigger.
The damage from ransomware in 2016 wasn’t just to individuals. Businesses and organizations in many fields were hit hard. Some, like the Hollywood Presbyterian Medical Center, paid up to $17,000 to get their systems back. The 2016 ransomware surge changed the cybercrime scene, leading to more complex attacks in the future.
WannaCry and NotPetya: State-Sponsored Ransomware Attacks (2017)
In 2017, the world saw two big ransomware attacks, WannaCry and NotPetya. These attacks showed how powerful state-sponsored cyber attacks can be. WannaCry hit over 150 countries, infecting hundreds of thousands of machines.
The ransomware spread fast, using the EternalBlue exploit. This exploit was leaked by the Shadow Brokers hacker group. It targeted a weakness in the SMB protocol.
NotPetya came soon after, looking like a normal Petya ransomware. But it was different. It destroyed the decryption key and messed up the machine’s boot data. This made recovery almost impossible for many.
The attack started with an infected update for Ukrainian tax software MeDoc. It quickly hurt networks all over the world. The CIA said it was likely a Russian military operation to mess with Ukraine’s finances, causing billions in damage.
Without WannaCry and NotPetya, ransomware in 2017 might not have seemed as bad. These attacks showed the growing threat of cyber attacks. They also showed the need for strong cybersecurity.
The Rise of Targeted Ransomware and Double Extortion Tactics
Ransomware attacks have changed a lot in recent years. Now, they target big companies, governments, and healthcare more. By 2025, these attacks will likely get worse, hitting important systems like health records and medical images.
Double extortion is a big deal now. It’s when attackers steal data before encrypting it. They threaten to share it unless you pay. This makes victims pay more to keep their secrets safe. Groups like Sodinokibi (REvil) and Ryuk have caused a lot of trouble.
Targeted ransomware attacks can really hurt businesses. They can cost a lot of money, including fines and rebuilding trust. These attacks can also shut down important systems, affecting businesses and even causing physical harm.
To fight these attacks, companies need to focus on cybersecurity. This includes keeping software up to date, training employees, and having good backup systems. Keeping up with the latest threats is key to staying safe. Learn more about 2024’s top cyber threats and how to protect your business at https://cyber-safety.co/top-cyber-threats-of-2024/.
Ransomware Evolution: Key Takeaways and Future Predictions
Ransomware has changed the way we think about cybersecurity. It started with simple attacks in the 1980s and now it’s a billion-dollar industry. The Colonial Pipeline attack in 2021 and the WannaCry and NotPetya attacks in 2017 showed how vulnerable we are.
Now, organizations need to keep up with these threats. They should train employees, use advanced protection, and plan for emergencies. Keeping data backups and testing recovery plans are also key.
Ransomware is getting worse. It will target us more precisely and cause more damage. AI and machine learning will make it smarter. Ransomware as a Service (RaaS) will let more people attack us. Expect more double extortion and attacks on supply chains.
To fight ransomware, we need to work together. Law enforcement, governments, and companies must share information. This way, we can all protect ourselves better. As ransomware costs keep rising, investing in cybersecurity is more important than ever.
