Digital Glossary · Security

What is ransomware?

In brief

Ransomware is malicious software that encrypts data or entire systems and demands a ransom for their release. Often the perpetrators also steal the data and threaten to publish it. Companies of any size are affected, especially those with weak backups and unmaintained systems.

Category SecurityReading time approx. 3 minLast updated October 16, 2026
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Ransomware: definition and sequence of events

The term combines “ransom” and “software.” The malware encrypts files, servers and often the backups too, and displays a ransom demand, usually with payment in cryptocurrency. Without the key, the data is useless and operations come to a standstill: no orders, no invoices, no access to customer data.

Modern attacks are rarely random hits. The perpetrators break in, gain admin rights, explore the network, copy data and only encrypt after days or weeks. In this double extortion, they additionally threaten to publish the data. Many groups offer their tools as “ransomware-as-a-service.”

Typical entry points

Attacks usually do not rely on high-tech tricks but on known weaknesses in everyday operations: a careless employee decision, a forgotten access rule, an update that was not installed. The more of these gaps a company closes, the more costly and risky the attack becomes for the perpetrators, and the sooner they look for an easier victim.

  • Phishing emails with attachments or links
  • Remote access such as RDP reachable from the internet without a second factor
  • Security updates not installed on VPN gateway, firewall and servers
  • Stolen or reused passwords
  • Access for service providers or partners that is never reviewed

Real-world example: the encrypted file server

At a supplier with 80 employees, no design drawings can be opened on Monday morning; all files carry a new extension, and a ransom demand sits on the desktop. The backup was attached to the same network as a drive and was encrypted along with everything else. Operations stand still, delivery deadlines are at risk, and customers ask when things will resume. It is also unclear whether data has been exfiltrated.

With preparation, the sequence would look different: affected devices are disconnected from the network, management and a specialist service provider are informed, the police file a report, and the systems are rebuilt from a separately stored backup. It takes time, but operations resume without any ransom being paid.

Prevention and what to do in an emergency

The most important precaution is backups following the 3-2-1 rule, with at least one copy stored offline or immutable, plus regular restore tests. In addition come timely updates, multi-factor sign-in, separated networks, endpoint protection with EDR and an emergency plan that sets out who does what and when. Authorities such as the BSI advise against paying ransom: decryption is not guaranteed, and every payment finances further attacks.

Nano Concepts reviews your backup concept and attack surface, sets up protective measures such as segmentation, updates and endpoint protection, and supports an orderly restart after an incident. A documented emergency plan with contacts and a restart sequence saves valuable hours in an emergency and prevents hasty wrong decisions.

Frequently asked questions about Ransomware

Authorities such as the BSI and the police advise against it. There is no guarantee that the perpetrators will deliver keys or delete stolen data, and every payment makes further attacks more lucrative. It is better to restore systems from backups and report the incident.

With several layers: tested backups with one copy offline or immutable, timely updates, multi-factor sign-in, endpoint protection with EDR, separated network segments and trained employees. No single measure suffices, but together they make an attack considerably harder.

Disconnect affected devices from the network immediately, inform those responsible and an IT specialist, preserve evidence and report the incident to the police. Rebuild cleanly only from verified backups and change credentials. Where personal data is involved, reporting obligations must be examined.

It can cover costs for forensics, recovery and business interruption, but usually requires minimum standards such as multi-factor sign-in and backups. It does not replace prevention; terms and benefits differ widely and should be checked carefully.

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