How to prevent ransomware attacks (part one)
To prevent ransomware attacks, it is essential to have a proactive security strategy that includes robust defenses, employee awareness, and continuous monitoring of vulnerabilities.
While ransomware payments fell by 35% in 2024, the same year also saw a record number of ransomware breaches. Attackers are evolving, using faster extortion tactics and rebranded ransomware strains to bypass defenses.
As one of the biggest cybersecurity threats for companies in general and for fintech in particular, ransomware attacks are capable of halting operations, causing financial losses, and damaging reputations.
What is ransomware?
Ransomware is a type of malware that encrypts files or locks systems, demanding payment to restore access. These attacks are particularly devastating for fintech companies and other highly liquid industries, where real-time transactions, customer trust, and regulatory compliance are critical.
A single ransomware infection can trigger a chain reaction of disruptions, from operational downtime to reputational damage, financial losses, and even regulatory and legal fallout.
And here’s the real problem: paying the ransom doesn’t guarantee recovery. Many victims never get their data back, or they become repeat targets. That’s why a proactive security approach is the best way to prevent ransomware attacks from disrupting your business.
How ransomware infections happen
Ransomware typically infiltrates systems through:
- Phishing emails – Malicious attachments or links trick employees into downloading ransomware.
- Exploit kits – Attackers take advantage of outdated software vulnerabilities.
- Compromised credentials – Weak or reused passwords allow unauthorized access.
- Malicious websites & Ads – Imprudent downloads install ransomware when users visit infected sites.
- Insider threats – Employees with privileged access may unintentionally or maliciously introduce ransomware.
- Unsecured Remote Desktop Protocols (RDPs) – Attackers exploit poorly protected remote access points.
Types of ransomware
Ransomware comes in several forms, each with its own attack method and consequences, but they all share one goal: financial extortion.
- Encryption ransomware – The most common type, it encrypts files and demands a ransom for the decryption key. Without backups or a way to crack the encryption, data can be permanently lost.
- Locker ransomware – Locks users out of their devices entirely, preventing access to files and applications. Unlike encryption ransomware, it doesn’t alter data but makes the system unusable until payment is made.
- Scareware – A deceptive attack that floods users with fake security warnings, tricking them into paying for unnecessary or malicious software. Some versions lock screens or disable functionality until payment is made.
- Doxware (Leakware) – Also known as double extortion ransomware, it steals sensitive data before encrypting it and threatens to leak it online if the victim refuses to pay. This is a growing trend among ransomware gangs.
Top practices to prevent ransomware attacks
A strong ransomware prevention strategy is built on layered security measures. Here’s how fintech companies can stay protected with five of the most common practices to prevent ransomware attacks:
1. Backup your data
A secure, well-structured backup strategy is the most effective way to recover from a ransomware attack without paying the ransom. If your data is backed up properly, attackers lose their leverage because you can restore your systems without needing their decryption key.
However, many ransomware variants now target backup systems, encrypting or deleting them to force payment. That’s why companies need to follow the 3-2-1 backup rule:
- Keep 3 copies of your data.
- Use 2 different storage types (e.g., cloud + on-premises).
- Store 1 copy offline (air-gapped or immutable storage).
Backups must be frequent, secure, and fast to restore to avoid service disruptions that impact customers and compliance.
2. Keep systems and software updated
Unpatched software is one of the most common ways ransomware spreads. In 2023, roughly 30% of ransomware attacks began with known, unpatched software flaws, according to a 2023 IBM report. Cybercriminals exploit outdated systems to install ransomware and encrypt critical data.
One of the biggest examples in recent years is the infamous WannaCry attack in 2017, which happened because of an outdated Microsoft Windows operating system that left organizations vulnerable. It spread to 150 countries, disrupting businesses, hospitals, and government agencies worldwide.
Keeping systems patched closes security gaps and prevents ransomware from getting in:
- Enabling automatic updates for operating systems and applications.
- Prioritizing security patches for vulnerabilities ransomware gangs actively exploit.
- Replacing outdated software that no longer receives updates.
- Using threat intelligence to stay ahead of new exploits.
3. Install antivirus software & firewalls
Traditional antivirus alone is no longer enough to stop modern ransomware, but it remains a crucial first line of defense when combined with advanced security measures. Firewalls help block unauthorized access, while AI-driven threat detection can identify ransomware behavior before it executes.
To reduce risk, follow these security best practices:
- Use next-generation antivirus (NGAV) with behavioral analysis to detect ransomware activity.
- Enable firewalls to filter out malicious traffic and block unauthorized access.
- Deploy endpoint detection and response (EDR/XDR) solutions for real-time threat monitoring.
- Restrict remote desktop access (RDP) and require multi-factor authentication (MFA) for remote logins.
- Be aware of fake virus detection alerts. Verify it is a real attack before clicking any links.
4. Network Segmentation
Network segmentation helps contain ransomware attacks by preventing malware from spreading across an entire system. By dividing a network into isolated segments, companies can limit access between critical systems, reducing the impact of an infection.
Businesses should implement the following security measures to contain ransomware attacks:
- Segment networks to separate critical systems from user workstations.
- Restrict lateral movement by enforcing strict access controls between segments.
- Use firewalls and VLANs to control traffic between different parts of the network.
- Monitor and log network activity to detect suspicious behavior early.
5. Email Protection
Phishing emails remain one of the most common ways ransomware spreads. Cybercriminals trick employees into clicking malicious links or downloading infected attachments, giving them access to corporate networks.
A major example is the Emotet malware, which started as a banking trojan but evolved into a ransomware delivery tool. It spread through infected email attachments and links, helping ransomware groups like Ryuk and Conti infiltrate organizations worldwide.
Strengthening email security is essential to stop ransomware before it reaches your network:
- Use AI-powered email filtering to detect and block phishing attempts.
- Enable attachment and link scanning to prevent employees from opening malicious files.
- Deploy DMARC, SPF, and DKIM to verify sender authenticity and prevent email spoofing.
- Train employees to recognize phishing emails and avoid clicking suspicious links.
What should you do after a ransomware attack?
The security measures we’ve covered—backups, patching, antivirus, network segmentation, and email protection—are just a few key defenses against ransomware. But even with strong prevention, no system is 100% attack-proof.
So, what happens if ransomware still gets in? Acting fast can make the difference between a contained incident and a catastrophic breach.
If ransomware strikes, follow these steps immediately:
- Isolate infected systems – Disconnect compromised devices from the network to stop the spread.
- Identify the ransomware strain – Understanding the attack can help determine recovery options.
- Contact cybersecurity experts – Professionals can assess the situation and guide your response.
- Avoid paying the ransom – There’s no guarantee you’ll regain access, and it funds criminal operations.
- Restore from backups – If available, use clean, offline backups to recover data.
- Report the attack – Notify authorities and affected stakeholders to comply with regulations.
- Analyze & strengthen security – Conduct post-attack forensics to prevent future breaches.
How Clovr Labs helps prevent ransomware attacks
At Clovr Labs, we take a proactive approach to ransomware defense, ensuring fintech companies stay ahead of emerging threats. Our three-core cybersecurity strategy is designed to stop ransomware before it can take hold:
- We continuously analyze your attack surface, identifying vulnerabilities before cybercriminals can exploit them.
- Our penetration testing and real-world attack simulations uncover security gaps so you can fix them before an attack happens.
- Unlike traditional security, we use adaptive, AI-driven defenses that evolve with new ransomware threats.
Ransomware attacks are more advanced than ever, but so are our defenses. Protect your business before it’s too late.
Contact us to assess your ransomware risk and build a bulletproof cybersecurity strategy.
