IT Security: Ransomware

Ransomware is a type of malware which restricts access to the computer system that it infects, and demands a ransom paid to the creator(s) of the malware in order for the restriction to be removed. Some forms of ransomware encrypt files on the system's hard drive (cryptoviral extortion, a threat originally envisioned by Adam Young and Moti Yung), while some may simply lock the system and display messages intended to coax the user into paying.

While initially popular in Russia, the use of ransomware scams has grown internationally; in June 2013, security software vendor McAfee released data showing that it had collected over 250,000 unique samples of ransomware in the first quarter of 2013—more than double the number it had obtained in the first quarter of 2012. CryptoLocker, a ransomware worm that surfaced in late-2013, had procured an estimated US$3 million before it was taken down by authorities.

Ransomware typically propagates as a trojan like a conventional computer worm, entering a system through, for example, a downloaded file or a vulnerability in a network service. The program will then run a payload: such as one that will begin to encrypt personal files on the hard drive.More sophisticated ransomware may hybrid-encrypt the victim's plaintext with a random symmetric key and a fixed public key. The malware author is the only party that knows the needed private decryption key. Some ransomware payloads do not use encryption. In these cases, the payload is simply an application designed to restrict interaction with the system, typically by setting the Windows Shell to itself, or even modifying the master boot record and/or partition table (which prevents the operating system from booting at all until it is repaired).

Ransomware payloads utilize elements of scareware to extort money from the system's user. The payload may, for example, display notices purportedly issued by companies or law enforcement agencies which falsely claim that the system had been used for illegal activities, or contains illegal content such as pornography and pirated software or media.  Some ransomware payloads imitate Windows XP's product activation notices, falsely claiming that their computer's Windows installation is counterfeit or requires re-activation. These tactics coax the user into paying the malware's author to remove the ransomware, either by supplying a program which can decrypt the files, or by sending an unlock code that undoes the changes the payload has made. These payments are often delivered using either a wire transfer, premium-rate text messages, through an online payment voucher service such as Ukash or Paysafecard, or most recently, the digital currency Bitcoin.