Imagine a world where cybercrime operates like a Fortune 500 company — complete with sales funnels, customer support, and even a thriving ecosystem of partners. This is the reality of today’s cyber threat landscape, and it’s called Ransomware-as-a-Service (RaaS). Ransomware attacks are on the rise, up 6% so far in 2024 over the same period in 2023. If you thought your small or midsized business (SMB) was too insignificant to attract attention from cybercriminals, think again. In the ransomware economy, everyone is a potential target.
Ransomware-as-a-Service — A Business Model for Cybercrime
Ransomware is no longer just the work of isolated hackers. It has evolved into a full-fledged business model known as Ransomware-as-a-Service (RaaS). In this shadowy marketplace, skilled developers create and sell ransomware tools to less technically savvy criminals, who then use these tools to attack businesses. RaaS has democratized cybercrime, making it accessible to a broader range of criminals and exponentially increasing the threat to businesses of all sizes.
At the heart of the RaaS ecosystem are three key players: the Operators, the Affiliates, and the Access Brokers. Each plays a critical role in executing a ransomware attack, and understanding how they operate can help you better defend your business.
The Players in the Ransomware Economy
- The RaaS Operators — The Masterminds
RaaS Operators are the developers behind the ransomware. They create the malicious software, provide updates, and often offer customer support to their “clients.” Think of them as the software companies of the criminal underworld. These operators offer their services on the dark web, complete with pricing tiers, user-friendly interfaces, and even customer service. In some cases, they take a cut of the profits from successful attacks, while in others, they sell the ransomware outright.
One high-profile example is RansomHub, a ransomware group that poses an increasing threat as it attracts criminal talent from other ransomware groups. That’s right, RansomHub is hiring. In August, the FBI issued an urgent warning about this group, which has successfully targeted over 200 organizations to date.
- The RaaS Affiliates — The Frontline Attackers
While the operators develop the tools, it’s the affiliates who carry out the attacks. These individuals or groups use the ransomware provided by the operators to infiltrate networks, encrypt data, and demand ransom payments. Affiliates often work independently, selecting targets, planning the attacks, and executing them using the tools and resources provided by the RaaS operator.
Affiliates are particularly dangerous because they’re incentivized to move quickly and efficiently. They typically share a portion of the ransom with the operators, which means they’re highly motivated to ensure their attacks are successful. And because RaaS tools are so easy to use, affiliates don’t need extensive technical knowledge to launch a devastating attack.
In 2023, the Royal ransomware group rose to prominence, executing attacks against several industries, including healthcare, manufacturing, and education. The group’s affiliates were responsible for launching ransomware attacks that crippled businesses by encrypting critical systems. The Royal group’s affiliates used advanced techniques, including moving laterally through networks and exploiting weak points, to maximize the damage. The group has since “rebranded” itself as BlackSuit and has stepped up its efforts.
- The Access Brokers — The Gatekeepers
Access Brokers are the third piece of the ransomware puzzle. These cybercriminals specialize in compromising networks and then selling that access to the highest bidder —often RaaS affiliates. They focus on finding and exploiting weak points in a company’s defenses, such as poorly secured Remote Desktop Protocol (RDP) connections or unpatched vulnerabilities. Once they’ve gained access, they sell it on underground forums, where affiliates can purchase it to launch their attacks.
Access Brokers are particularly adept at finding the cracks in your security. Recently, the FBI warned about a surge in attacks targeting RDP connections, a favorite method for Access Brokers to gain initial access to networks. These weak points are often overlooked by smaller businesses that may not have the resources to maintain rigorous cybersecurity protocols, making them easy targets for these cyber criminals.
The RaaS Sales Funnel Turns Access into Profit
The RaaS ecosystem operates much like a legitimate business, complete with a sales funnel designed to maximize profits. Here’s how it works:
- Top of the Funnel: Initial Access
The process begins with the Access Brokers. They identify vulnerable systems—often using automated tools to scan for weaknesses—then compromise these systems and sell access to affiliates. - Middle of the Funnel: Ransomware Deployment
Once an affiliate has purchased access, they deploy the ransomware. This stage involves moving laterally within the network, compromising as many devices as possible, and ultimately encrypting critical data. - Bottom of the Funnel: Ransom Negotiation and Payment
After the ransomware is deployed, the affiliate demands a ransom. The affected business is typically given a deadline to pay up or risk losing their data permanently. If the company pays, the affiliate and the operator share the profits, and the cycle begins again.
For the criminals involved, this funnel is highly profitable. For your business, it’s a nightmare scenario.
Why Your Small Business is a Target
In this ransomware economy, no business is too small to be targeted. In fact, small businesses are often seen as low-hanging fruit by cybercriminals. With fewer resources to devote to cybersecurity, SMBs are more likely to have weak points that can be exploited—whether it’s poorly secured RDP connections, outdated software, or employees who haven’t been trained to recognize phishing attempts.
Moreover, the RaaS model makes it easier than ever for criminals to launch attacks on a wide scale. Because the tools are accessible and easy to use, even amateur hackers can become successful ransomware operators. This means that the pool of potential attackers is larger than ever, increasing the likelihood that your business will be targeted.
Defending Against the Ransomware Economy
So, what can you do to protect your business? The first step is to recognize that you are a target. Understanding the RaaS economy and how it operates is critical to developing a robust defense strategy. Here are a few key steps you can take:
- Strengthen Your Defenses
Ensure your network is secure by regularly updating software, using strong passwords, and securing RDP connections. Consider investing in advanced cybersecurity solutions that detect and respond to threats in real-time. - Train Your Employees
Your employees are your first line of defense. Regularly train them to recognize phishing attempts and other common tactics used by cybercriminals. - Work with Experts
Cybersecurity is complex, and it’s easy to feel overwhelmed. Partnering with a trusted provider like Cloud at Work can give you access to the expertise, tools, and resources you need to protect your business and your Sage solutions from ransomware and other cyber threats.
The Ransomware Economy is Looking Bullish
The ransomware economy isn’t going away. In fact, it’s only growing more sophisticated. But by understanding how it works and taking proactive steps to defend your business, you can reduce risk and ensure you’re not the next victim.
Cloud at Work is committed to helping you navigate this complex threat landscape. Our cloud hosting solutions are designed with security at the forefront, providing a fortified, virtual private cloud hosting environment for your Sage applications, including Sage 100, Sage 300, Sage 500, Sage X3, Sage HRMS, and Sage Fixed Assets. Don’t wait until it’s too late—contact us today to learn how we can help protect your business from the growing threat of ransomware.