The Rise of Digital Ransom:The dangers of cyber extortion

Posted on: Apr 21, 2023 | 3 mins | Written by: HDFC ERGO Team

The Rise of Digital Ransom:The dangers of cyber extortion

The rapid growth of technology and its widespread use have made the digital landscape a hotbed for cybercrime. Cyber extortion, more commonly known as "blackmail," has become an increasingly prevalent form of cybercrime in recent years. While there are many different forms of it, all involve criminals leveraging personal information or sensitive documents against victims in order to demand money or some other sort of payment.

Unfortunately, cyber blackmailing can happen to anyone who possesses valuable data, making it important for individuals and organizations alike to understand the risks associated with this type of blackmail. Let’s discuss how you can identify perpetrators of blackmailing; describe key tactics used by attackers; outline various methods available for detecting threats; and offer strategies that should be implemented when responding to incidents involving cyber extortion.

What is cyber extortion?

Cyber extortion is when a cybercriminal threatens to do something unless their demands are met. This could be anything from cyber blackmailing someone to damaging a business's online reputation and computer systems, stealing confidential data, or even launching crippling attacks. Regardless of the criminal’s goal, it creates fear among the victims and those around them. In some cases, extortionists even threaten physical harm if their demands are not met.

Cyber extortion can involve demands for ransom payments in return for the safe release of confidential information or threats of distributed denial-of-service (DDoS) attacks against an organization’s website or other computing resources unless they pay up. Cybercriminals also use social engineering as another way of cyber extortion by threatening victims with exposure through such malicious activities as email fraud, phishing attacks, and massive spamming campaigns.

What are the types of cyber extortion?

The different methods of extortion also vary significantly. Techniques such as website defacement, distributed denial-of-service (DDoS) attacks, file encryption, and data theft are becoming increasingly common among perpetrators of cybercrime.

In many cases, the victim may not even realize they have been blackmailed or extorted until it is too late. These techniques can be used to collect payment from a victim or force them to do something else against their will. Hence it is prudent for individuals and organizations alike to take steps towards protecting themselves from these types of cyber blackmailing methods.

How does cyber extortion work?

Cyber extortion is a form of cybercrime in which an individual or group threatens to release sensitive information, launch a denial-of-service (DoS) attack, or otherwise harm a victim unless the victim pays a ransom. The attackers may claim that they have stolen data from the target and will publish it online if their demands are not met.

In other cases, they might threaten to shut down the victim's website, email account, or computer system or even take control of their social media accounts for an indefinite period of time. Cyber extortion can be difficult for victims to defend against as there is often no way to guarantee that the attacker won't follow through on their threats. As such, many companies opt to pay the ransom demand rather than risk losing valuable data or facing significant disruption of their operations. Availing of cyber insurance can be of great help to avoid potential financial losses from cyber extortion. There is cyber insurance for family, cyber insurance for working professionals, etc., that allows you to avail of need-based coverage.

Real-life cyber extortion examples

The real-life cyber extortion cases can demonstrate the true power of cybercriminals when it comes to extorting money. In one case, a group of hackers called the Dark Overlord threatened to release sensitive healthcare data unless their victim paid a large ransom in Bitcoin cryptocurrency. The company refused and ultimately had sensitive patient information posted online for anyone to see.

In another example, an individual received threatening emails from someone claiming they had access to personal documents on his computer and would publish them if he didn’t pay up. After much negotiation, the individual was able to pay off the hacker without having any of his private files released or compromised in any way. While these are just two examples, they are an important reminder that anyone can be a vulnerable target for such schemes. Hence, it is important to have protection measures as well as avail cyber insurance in India to be secure online.

Cyber extortion vs Ransomware

Cyber extortion and ransomware are two threats that have become increasingly common in recent years. Both involve malicious actors using technology to hijack systems or data for financial gain, though there are some key differences between them.

1. Cyber extortion involves criminals threatening to release confidential information or otherwise disrupt operations unless a ransom is paid. Criminals typically demand payment via cryptocurrency, making it difficult to trace the transaction or identify the attacker. On the other hand, Ransomware is malware designed to encrypt files on victims’ computers until they agree to pay a fee (often also demanded in cryptocurrency) for their decryption key.

2. While both can have devastating impacts on businesses and individuals alike, ransomware poses an even greater threat due to its ability to spread quickly across networks once installed on one system.

3. As such, organizations should be sure to have effective backup solutions in place so that if attacked, they will not lose critical data permanently as well as robust security protocols in order to detect potential attacks before they occur.

Conclusion

Cyber blackmailing is emerging as an increasingly pervasive and difficult-to-detect threat. Though hackers may be able to obtain personal data from unsuspecting victims, it is important that individuals remain vigilant and protect themselves online by not clicking on suspicious links. It is also essential for governments and organizations around the world to invest heavily in cybersecurity measures in order to minimize the number of successful cybercrimes attempts against their systems. With improved security measures and a cyber insurance cover, you can effectively deal with this modern-day blackmail.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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