Understanding Ransomware Attacks | Legal Rights & Protection

Globally, the number of ransomware attacks and data breaches has risen in the last few years. Governments and public and private companies have struggled to implement strong enough network security to protect consumers, which compromises the personal data of employees and individuals worldwide.

Ransomware accounted for 30 percent of all U.S.-based cyberattacks reported to and confirmed by Verizon data breach researchers in 2020. It is almost every day that we read about a new ransomware attack, though many still don’t understand how the hackers are operating and how we can best prevent such dangerous cyberactivity.

To learn more about the impacts of recent ransomware attacks and data breach incidents, contact The Lyon Firm. Joe Lyon is a class action privacy attorney investigating data breach claims on behalf of plaintiffs nationwide.

How Do Ransomware Attacks Work?

Ransomware is a type of malware that encrypts a victim's data or company files. After the hacker finds a way to install this malware onto a company network, through various means, they will often demand a ransom to restore access to the locked or inaccessible data. Upon payment, the decryption key for the files is then meant to be provided.

There are a number of ways this malware can reach a network, including through phishing email scams, as well as other more elaborate forms of malware that find network security vulnerabilities and can infect a network without needing to fool users.

A less-common malware variation, called leakware or doxware, is used when an attacker threatens to publicize sensitive data on a victim's hard drive unless a ransom is promptly paid.

When ransomware operators gain access to a system, they rarely stop at encryption. Modern attacks involve data exfiltration, where hackers steal sensitive files before locking them. If victims refuse to pay, cybercriminals often threaten to sell or publish the stolen information online.

Who is Behind Ransomware Attacks?

Most ransomware attacks today are carried out by highly organized cybercriminal groups that operate much like traditional businesses. Many of these organizations run on a “Ransomware-as-a-Service” model, in which affiliates can rent ransomware tools and infrastructure in exchange for a share of the profits.

In addition to criminal enterprises, state-sponsored hackers or groups operating with government tolerance are also responsible for a significant share of ransomware activity. These actors, often traced back to countries such as Russia, North Korea, and parts of Eastern Europe, are known for targeting critical infrastructure and financial systems.

Insider threats also play a role, to some degree. Employees or contractors may misconfigure systems or fall victim to phishing campaigns. These insider actions can open the door for cybercriminals to launch ransomware more easily.

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Who Can Be Held Liable After a Ransomware Data Breach?

Money is the name of the game in 99 percent of cases, so criminals seek the most valuable information to highjack. Healthcare systems are targeted quite often for this reason. On the open market, hackers consider personal health information some of the most valuable data.

“Low hanging fruit” is also of interest to cybercriminals, and even though the threat of cyberattacks is not a new phenomenon, many companies and healthcare organizations fail to properly protect their networks, and hackers take advantage of the negligent security.

While no one can fully eliminate the risk of ransomware, organizations can take steps to reduce exposure. Businesses must adopt stronger cybersecurity protections and encrypt sensitive data.

Victims of ransomware should consider consulting with a data privacy attorney to better understand their legal rights. Lawyers at The Lyon Firm with experience in data breach and privacy litigation can help determine whether negligence was involved and whether compensation may be available.

Can You Sue a Company After a Ransomware Data Breach?

Regardless of where the threat is originating from, companies have a responsibility to protect the collected and stored personal data of their employees and clients. If they fail to protect your data, you may have a claim.

Joe Lyon is an invasion of privacy attorney investigating data breach incidents and is actively filing class action data breach lawsuits on behalf of plaintiffs nationwide.

To learn more about recent security breach incidents and to join current class action data privacy lawsuits, contact The Lyon Firm. Call for a free and confidential consultation.