Ransomware attacks are no longer rare, isolated incidents and can now be a costly reality for organisations of all sizes. Over the last 5 years the financial impact of ransomware has escalated dramatically, with global damages estimated to be $57bn annually once ransom payments, operational downtime, reputational damage and regulatory fines are taken into account. For many organisations, a ransomware attack is not just an IT issue but can actually become a business crisis that can threaten long term survival.
Despite increased awareness and investment in cybersecurity, ransomware remains the most significant cyber threat facing UK organisations today. And, according to the National Cyber Security Centre, it continues to dominate the UK threat landscape, affecting critical national infrastructure, the public sector and private businesses alike. So, it then becomes essential for companies, regardless of their size, to understand how ransomware attacks unfold from start to finish.
Something’s a bit phishy: How does ransomware work?
Every attack begins with initial access and, in most cases, attackers do not break in through sophisticated technical exploits. Instead, they often take advantage of erroneous human behaviour and basic security gaps. Because of this, phishing emails remain the most common entry point, tricking users into clicking on malicious links or files, or entering credentials into fake login pages. Then, once the attackers gain a foothold in your system from a successful phishing exercise, they can begin moving deeper into the sensitive data and files within your environment.
Other common access vectors include vishing (voice phishing), compromised remote desktop services, weak or reused passwords, unpatched software vulnerabilities and supply chain compromises. Understanding how ransomware works is critical, as preventing initial access is often the most effective way to stop a ransomware attack before it starts.
Spreading and Encrypting: The attack takes hold of your system
Once inside the network, ransomware does not usually begin immediately. Instead, attackers take their time to explore the environment, change privileges, and identify valuable systems and sensitive data. This phase is often invisible to the organisation and can last days, weeks, or even years. During this period, attackers might disable security tools, harvest credentials, or make a move laterally across the network.
This is known as dwell time and it represents the window where a data breach is already underway, even though no ransom has been demanded. By the time encryption begins, attackers often have deep control over the environment and access to backups, increasing the likelihood of widespread disruption. Reports from incident response firms show that longer dwell times often result in more severe damage and higher recovery costs.
The Ransom Note: The diagnosis begins
The moment ransomware is discovered can come abruptly with systems becoming inaccessible, files become encrypted and ransom notes appear across servers and user devices. It’s at this point that your organisation is confronted with the reality of a cyber extortion event. Ransom demands typically include a deadline, with payment instructions and threats of escalating consequences if demands are not met.
Additionally, these attacks rarely stop at encryption alone with some groups now using double extortion tactics, where data is stolen before the encryption begins. The attackers then threaten to leak sensitive data publicly if the ransom is not paid, which then adds regulatory, legal and reputational pressure to the already significant operational disruption.
To Pay or Not to Pay? The difficult dilemma facing UK businesses
After the discovery of ransomware, organisations face one of the hardest decisions in incident response – whether to pay the ransom or not. Paying may appear to offer a faster route to recovery, especially when backups are compromised or downtime is financially devastating. However, there are serious downsides, including that payment funds criminal activity, encourages future attacks and provides no guarantee that data will be fully restored or not leaked anyway.
Official guidance from the National Cyber Security Centre and law enforcement agencies is clear. Organisations are strongly advised not to pay ransoms and instead should focus on containment, recovery and engaging specialist incident response support. Knowing what to do after a ransomware attack, including legal notification obligations and communications planning, is critical to minimising long term damage.
Building your cyber defences: preventative ransomware protection tips
Preventing ransomware requires a layered approach that addresses both technology and people. Regular security awareness training can significantly reduce the success of phishing attacks, while strong password policies and multi factor authentication limit the impact of credential theft. Keeping systems patched and reducing exposed remote access services can also further reduce overall risk.
Additionally, one of the most important ransomware prevention tips is maintaining robust backups. The widely accepted 3 2 1 backup rule recommends keeping three copies of data, stored on two different media types, with one copy kept off site. For UK businesses targeted by ransomware, tested and isolated backups often make the difference between rapid recovery and prolonged disruption.
Remaining immunised and protected
Ransomware is not a question of if, but when an attack will happen to businesses like yours. Organisations that assume breaches will happen and prepare accordingly are far more resilient in their cybersecurity when incidents occur. A tested incident response plan, clear roles and regular tabletop exercises ensure that decisions are made calmly and effectively under pressure. Also, moving from a reactive mindset to a proactive security strategy is the hallmark of organisations that can withstand modern cyber threats.
Worried about ransomware? Contact us for a comprehensive risk assessment and practical guidance on strengthening your defences. The question is not if you will be targeted, but when, so it pays to be proactive.