How to fend off hackers out to extort companies for million-dollar ransoms

While firms can take precautions, the best defence still lies with employees

- Tan Ooi Boon

Many of us are wise to the tricks scammers play in their ever-craftier attempts to rip off vulnerable individuals, but a more insidious danger comes in the form of cybercrooks targeting companies and their employees.

The threat, so far, comes mainly from overseas, with hackers preferring to target businesses for the obvious reason that they have plenty of money.

It has become a depressingly familiar process: Unleash lethal computer viruses known as ransomware to infiltrate company networks with the aim of blocking access to crucial business data. The demands for money then flow in, forcing the firm to either pay up or stay locked out of crucial parts of its operations.

The dangers of this were brought home in August 2023 when a ransomware attack on a major medical provider's computer systems in the United States led to the closure of emergency rooms and the diversion of ambulances in several states.

Once the data is locked by the malicious encryption, victims without backup systems will have to pay a ransom for the password that will unlock their networks.

Giving in to ransomware crooks offers cold comfort to the companies as there is no guarantee that they will not misuse certain data, such as credit card details, that are already in their hands.

While the police and cyber-security experts say it is better to report the attacks and not pay the ransom, many victims have no choice because they want to avoid crippling their operations.

Blockchain data expert Chainalysis says such hackers pocketed about US$1.1 billion (S$1.47 billion) in ransom from numerous attacks worldwide in 2023, or almost double the haul in 2022.

"The ransomware landscape is not only prolific but continually expanding, making it challenging to monitor every incident or trace all ransom payments made in cryptocurrencies," the company reports.