Cyber Extortion: Awareness of a Growing Threat in 2024

What is Cyber Extortion? 

Cyber extortion is a form of attack where cybercriminals threaten to release, destroy, or compromise sensitive data unless a ransom is paid. It’s not limited to locking down systems like ransomware; it focuses more on leveraging sensitive or confidential information to coerce victims. Cyber extortionists may steal corporate data, employee records, intellectual property, or any valuable information they can use as leverage. If victims refuse to comply, the attackers might publicly release the data or sell it on the dark web. 

Unlike ransomware, where the objective is to lock the system and demand payment to restore access, cyber extortion focuses on exploiting stolen information as a threat. 

The Key Differences Between Cyber Extortion and Ransomware 

While both cyber extortion and ransomware involve the demand for payment, the key difference lies in how the threat is executed: 

• Ransomware: In a ransomware attack, cybercriminals use malware to encrypt data, making it inaccessible until the victim pays a ransom for the decryption key. The attack typically disrupts business operations, but the stolen data itself may not be the focal point. The goal is to restore access, not necessarily to manipulate or disclose the data. 

• Cyber Extortion: Cyber extortion doesn’t rely on locking systems. Instead, attackers focus on the threat of releasing sensitive data that could damage a company’s reputation, expose proprietary information, or cause regulatory issues. These attacks create a different form of pressure, as the stolen data might be used to blackmail the company even after the systems are restored. 

The Rise of Cyber Extortion in 2024 

The year 2024 has seen a marked rise in cyber extortion attacks. Several factors contribute to this surge: 

1. Increasing Sophistication of Attacks: Cybercriminals are evolving and developing new techniques to exploit vulnerabilities in organisations. With better reconnaissance tools, attackers can precisely target businesses with valuable, exploitable data. 

1. Data Exfiltration and Double Extortion: Many ransomware attacks in 2024 are now combined with elements of cyber extortion. In what is known as double extortion, attackers not only encrypt a company’s data but also exfiltrate it, threatening to leak or sell it unless additional payments are made. This hybrid method ensures criminals retain leverage even if the company refuses to pay for decryption. 

1. Targeting of High-Value Data: Companies in industries like healthcare, finance, and tech are being hit particularly hard by cyber extortion, as they hold sensitive personal data, trade secrets, and intellectual property that attackers can use to apply pressure. The possibility of regulatory fines, loss of business, and reputational damage makes paying the ransom an attractive, albeit risky, option for many victims. 

1. A More Lucrative Attack Method: For many cybercriminals, extorting companies through the threat of data exposure is proving to be more lucrative than locking systems with ransomware alone. As organisations strengthen their ability to restore systems quickly after ransomware attacks, the threat of public exposure or the sale of sensitive data can often force businesses to comply. 

1. Increased Regulatory Pressure: Data privacy regulations like POPIA in South Africa impose heavy fines for data breaches. This has given cybercriminals another tool in their arsenal, the ability to threaten not only direct financial loss from data exposure but also substantial fines from regulators. In some cases, companies fear these penalties as much as or more than the reputational damage of a breach. 

Protecting Your Business from Cyber Extortion 

With the rise of cyber extortion in 2024, businesses need to bolster their defences. Here are some critical strategies to mitigate the risk offered by Nclose: 

• Data Encryption and Access Management: Proper encryption of sensitive data reduces the risk that attackers can use stolen information as leverage. Additionally, implementing strict access controls and regularly reviewing permissions can minimise the potential for data exfiltration. 

• Cyber Awareness Training: Cyber extortion often starts with a phishing attack or insider threat, so it’s essential to educate employees on recognising these tactics. Nclose’s Security Awareness Training, powered by KnowBe4, helps businesses stay vigilant against evolving threats. 

• Incident Response Plan: Having a well-rehearsed incident response plan ensures that your organisation is prepared to respond to cyber extortion. This should include steps to quickly assess the extent of a data breach, restore systems, and, most importantly, communicate with stakeholders to manage reputational risk. 

• Partnership with Security Experts: Partnering with a cybersecurity provider like Nclose ensures that your business is protected by experts who understand the latest threats and know how to keep your systems secure. With tailored services that include vulnerability assessments, incident response, and continuous monitoring, we can help reduce your risk of falling victim to cyber extortion. 

Conclusion 

As cyber extortion continues to rise in 2024, the threat landscape is evolving. It’s no longer enough to simply defend against ransomware; businesses must also be prepared for the possibility of sensitive data being weaponised against them. The best defence is a proactive, multi-layered cybersecurity strategy that combines technology, training, and expertise to safeguard valuable information.