Understanding Ransomware Attacks | Legal Rights & Protection

Ransomware attacks lead to hundreds of data breach incidents that may impact you and millions of other Americans. What are companies doing to thwart such disruptive events? Maybe not enough.

Understanding The Privacy Risks of Ransomware Attacks

Globally, the number of ransomware attacks and data breaches has risen in the last few years with no signs of cyberattacks waning. In the recent wave of cyber threats, governments and public and private companies have struggled to implement robust network security to protect citizens and 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.

This tactic—known as double extortion—creates unique privacy dangers. Victims may never regain control over their data, even if they pay the ransom. Once private files are leaked or sold, the consequences can last for years, undermining both personal and professional lives.

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. Some of the most well-known groups in recent years include LockBit, BlackCat/ALPHV, and Clop, all of which have been linked to large-scale global attacks targeting corporations, hospitals, and government agencies.

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. Their attacks are designed not only to generate money but also to disrupt essential services or weaken rivals.

Ransomware incidents are not always driven by outsiders. Insider threats, whether intentional or accidental, also play a role. Employees or contractors may misconfigure systems, fall victim to phishing campaigns, or in some cases deliberately sell access credentials on dark web marketplaces. These insider actions can open the door for cybercriminals to deploy ransomware more easily.

According to cybersecurity reports from agencies such as CISA and Europol, LockBit has emerged as the most active ransomware group in 2024 and 2025, responsible for a significant portion of high-profile incidents worldwide. Despite international crackdowns, the group continues to evolve, proving that ransomware remains one of the most pressing cybersecurity threats of our time.

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 very 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, both individuals and organizations can take steps to reduce exposure. For consumers, monitoring accounts, using credit freezes, and securing personal devices are essential. Businesses must adopt stronger cybersecurity protections, train employees against phishing scams, and encrypt sensitive data.

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

How to Prevent Ransomware Attacks

Ransomware has evolved from a nuisance attack into one of the most significant data privacy threats of our time. Once viewed primarily as a financial crime that locked computer systems until a ransom was paid, ransomware now presents a far more dangerous risk: the misuse and exposure of personal and sensitive information.

This shift means that ransomware is no longer just about recovering files—it is about protecting identities, personal data, and the long-term digital security of victims. There are some defensive steps companies and individuals can take to prevent ransomware attacks, in conjunction with other basic network security measures:

• Keep any operating system patched and with recent security updates to limit vulnerabilities.
• Do not install software or grant it administrative privileges unless you are certain of what it is and what it does.
• Install antivirus software, which detects malware programs like ransomware before they can breach your system.
• Frequently back up important files. Make backups frequent and automatic. If you become a victim, but have backed up data, the hacker may not have any leverage in demanding a ransom.

Can You Sue a Company After a Ransomware Data Breach?

Regardless of where the threat is originating from, whether it’s a foreign-born syndicate or a homegrown cybercriminal, companies have a responsibility to protect the collected and stored personal data of their employees and clients.

The U.S. government and consumer safety advocates are urging individuals and companies to educate themselves on the basics of ransomware attacks, and to bolster both personal and work network security.

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. If a company fails to properly protect your personal information, and data is leaked, you may have a viable data privacy claim.

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.