What is ransomware?

Ransomware is a type of malware specifically designed to encrypt a user's files or system, rendering them inaccessible until a ransom is paid to the attacker for the decryption key. This malicious software often infiltrates a system through phishing emails, compromised websites, or vulnerabilities in software, and once active, it can swiftly encrypt files across the entire network. The attackers typically display a message demanding payment, usually in cryptocurrencies, to return access to the encrypted data.

Understanding ransomware as a financial threat is crucial for organizations and individuals alike, as it emphasizes the importance of having robust backup strategies and cybersecurity measures in place to mitigate the risk of such attacks. It's also significant to note that simply paying the ransom does not guarantee that the attackers will decrypt the files or not target the victim again.