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The evolution of ransomware has seen a variety of malware forms emerge, leading to attacks that have harmed organizations and their IT systems throughout the years. The history of ransomware shows that what was once a petty crime is now affecting major enterprises and economies all over the world.
Various types of ransomware – from the very famous crypto-malware to the highly-sophisticated big game hunting attacks – are causing financial disasters for many companies, and MSPs are a key target. MSP ransomware attacks have resulted in massive losses and serious reputational damage to the MSPs in question.
Organizations preparing for such attacks require proactive monitoring and defense systems, as well as a secure backup and recovery solution, one that can heavily protect data and swiftly restore it in the case of a successful MSP ransomware attack.
Why Ransomware Attacks Are Increasing
According to a Microsoft Report, ransomware attempts increased by 2.75 times in 2024 and there are no signs of slowing down. Attackers constantly adapt their tactics to bypass cybersecurity measures. Sophisticated ransomware variants, often months in the making, can devastate unprotected networks while maximizing success rates. Let’s look at more factors that contribute to the rise of ransomware attacks:
- Remote Work Environments: The expansion of remote and hybrid work environments came with new vulnerabilities. Remote Desktop Protocols (RDP) and employees connecting to corporate networks from various devices provide attackers with more entry points.
- Ease of Deployment: Since ransomware-as-a-service (RaaS) became a thing on the dark web, launching an attack is accessible even to less skilled hackers.
- Social Engineering and Phishing Emails: These tactics exploit human error, using deceptive emails and fake links to infiltrate networks.
- Supply Chain Vulnerabilities: Many organizations rely on third-party vendors and service providers, creating opportunities for attackers to exploit these trusted relationships.
- Unpatched Software: Neglected cybersecurity hygiene leaves many systems vulnerable to known exploits.
Why Managed Service Providers (MSPs) Are at Risk
Cybercriminals will often look for any vulnerability that would enable them entry into a business’s IT network. If they don’t find direct access into an organization’s systems, they will take the back door and attempt to enter through the enterprise’s supply chain. Often, for businesses in the tech industry, MSPs have the bad luck of being ransomware targets.
MSPs are essentially the “keepers of the keys” to their clients’ kingdoms, especially for their credentials. If an attacker gains access to databases that contain client credentials and other sensitive information, there’s a high probability they’ll gain access to thousands of other business systems instantly.
When MSP ransomware attacks occur, not only are their clients put in danger, but MSPs suffer massive reputational damage. In an industry where security and trust are so important, such damage can mean they never fully recover.
A cyberattack through ransomware not only locks up data and prevents access but can also spread into clients’ systems once they succeed in infecting the main MSP network. These are the alarming numbers behind ransomware impacting MSPs:
- 76% of MSPs reported a cyberattack on their infrastructure in the past year. (source)
- 51% of these attacks resulted in unplanned expenses to fix security gaps. (source)
- The average cost of a data breach in 2024 reached $4.88 million. (source)
- Ransomware is projected to cost victims around $265 billion annually by 2031. (source)
The Real Cost of Ransomware
Ransomware damage is both reputational and financial. Many companies have lost millions of dollars to successful MSP ransomware attacks, on top of suffering brand damage. Here are some examples:
- In February 2024, a prominent Sacramento law firm filed a lawsuit against their managed service provider, LanTech LLC, claiming negligence in cybersecurity measures and backup protection. The plaintiff alleges that they were forced to pay the attackers, said in the complaint to be Black Basta, an undisclosed sum to regain access to its network. Black Basta, a ransomware-as-a-service crew first detected in 2022 is said to have orchestrated some 300 ransomware attacks that have landed it more than $100 million in bitcoin ransom payments.
- In January 2024, Tietoevry, a Finnish IT and cloud services provider, suffered a ransomware attack. The attack specifically targeted one of the company’s data centers in Sweden, causing significant disruptions for various Swedish organizations, including government agencies, universities, and businesses.
- In October 2023, Südwestfalen IT, a service provider supporting more than 70 municipalities in Germany, was hit by a ransomware attack that severely disrupted local government services. The incident impacted critical infrastructure, including town halls, websites, email, and phone systems, disrupting daily operations and essential services for citizens.
These, along with the continuous increase in ransomware attacks, highlight the need for more security and preparation against such intrusions.
How Does Ransomware Work?
Ransomware is malicious software designed to encrypt critical data, locking victims out of their files, systems, and applications until a ransom is paid, usually in cryptocurrency. It targets key assets like databases and file servers, causing severe operational disruptions and financial losses.
Key mechanisms of ransomware:
- Encryption Process: Ransomware employs asymmetric encryption using a public-private key pair. The private decryption key, held by the attacker, is only offered upon ransom payment, though victims may still be left without access even after paying.
- Attack Vectors: Common delivery methods include phishing emails, malicious attachments, or exploiting unpatched software vulnerabilities. Once deployed, ransomware scans networks for high-value files like sensitive documents and databases to encrypt.
- Ransom Demands: Victims are presented with a demand notice and tight deadlines, often 24–48 hours. Non-compliance can lead to data deletion, leaks, or permanent inaccessibility.
- The Spread and Impact: Ransomware is engineered for maximum damage by exploiting network vulnerabilities. It propagates laterally across systems, encrypts critical assets, and uses coercive tactics to pressure victims. Recovery can take weeks without effective backup solutions, leaving organizations at risk of significant downtime, financial loss, and reputational damage.
Having a robust, isolated backup and disaster recovery strategy is essential to mitigate the risks of ransomware and ensure quick recovery without capitulating to attackers.
Essential Security Measures Every MSP Should Implement
1. Endpoint protection
As businesses expand, the number of connected devices grows, increasing potential attack surfaces. Advanced endpoint protection platforms (EPP) and endpoint detection and response (EDR) tools are crucial for safeguarding devices like laptops, smartphones, servers, and IoT endpoints. Effective endpoint security includes:
- Real-time malware detection and removal
- Threat hunting and intrusion detection
- Data loss prevention (DLP)
- Browser and mobile security
- Automated threat response
Solutions like SentinelOne integrate AI-driven detection and response capabilities to enhance threat management and reduce manual intervention.
2. Patch management software
Unpatched software vulnerabilities are a common gateway for ransomware. Regular updates to devices, applications, and operating systems are vital for minimizing risks. Automated patch management tools streamline this process by:
- Ensuring timely application of updates
- Reducing exposure to known vulnerabilities
- Enhancing system performance and compliance
3. Data Backup and Recovery
Although proactive monitoring systems, firewalls, and related proactive protective systems can help reduce the risk of ransomware, they cannot guarantee the safety of your business data. The best way to guarantee data safety and security against the continuous evolution of ransomware attacks is with an automated, ongoing cloud-based backup solution that maintains complete copies of your emails, attachments, individual and shared drives, tasks and calendars in a separate, secure system.
Should an MSP ransomware attack happen, you can restore your backed-up files easily and quickly, which can significantly reduce the impact such an attack would have. Another best practice for organizations is to follow the 3-2-1 Rule of Backup to keep multiple backups on different storage media to ensure they always have at least one readily available data copy.
Cloud-based backup and disaster recovery solutions like Dropsuite reduce the impact of lost or corrupted data. Dropsuite protects a broad range of critical business data including:
- Microsoft 365 (email, SharePoint, OneDrive, Groups, Teams)
- Google Workspace (Gmail, Shared Drive, MyDrive)
- Microsoft Entra ID
- QuickBooks Online (available only in the US)
- GovCloud (available only in the US)
MSPs should offer their clients a robust backup solution that encrypts data both in transit and at rest, while also blocking access to various ransomware strains. Beyond enhancing security, backup encryption provides additional benefits such as improved privacy, data integrity, authentication, and support for regulatory compliance.
With robust backup and disaster recovery solutions featuring immutable WORM (Write Once, Read Many) storage, Dropsuite ensures your data remains secure and always accessible, providing an extra layer of protection.
Educating Your Clients About Ransomware
Whether your clients are SMBs or large enterprises, they need to understand the potential impact ransomware can have on their operations and the steps they should take to reduce risk. Empowering your clients with knowledge about ransomware makes it easier to implement effective protections.
Below are key guidelines for MSPs to educate clients on ransomware risks and the importance of safeguarding sensitive data:
- Use Current Events: Leverage ransomware-related news stories to initiate discussions.
- Explain the Threat: Provide insights into how ransomware operates, emerging variants, and the consequences of a successful attack.
- Highlight Costs: Stress the financial and operational impacts of a ransomware breach.
- Promote Proactive Protection: Share resources such as whitepapers, presentations, and email campaigns to emphasize the value of regular updates and proactive security measures.
- Simulate Attacks: Encourage clients to run security simulations, like phishing tests, to educate employees on identifying and avoiding malicious links or attachments.
Best Practices for MSP Ransomware Protection and Recovery
Responding to a ransomware attack requires a well-defined plan and swift action to minimize damage and downtime. Key steps include isolating infected systems, reporting the attack to authorities, securing backups, disabling tasks that could hinder investigation, and identifying the ransomware’s source. After removing the malware, restore your systems and data on clean devices to resume operations safely.
Recovery time varies based on factors like backup quality, IT complexity, attack response, and the type of ransomware. Extended downtime can disrupt operations, reduce customer satisfaction, and increase costs. Protecting your business from ransomware requires proactive strategies and tools to ensure data security and business continuity. Here are some best practices you can follow:
- Deploy cybersecurity solutions like Security Information and Event Management (SIEM) and Extended Detection and Response (XDR) to detect and block threats.
- Implement strong authentication and Zero-Trust access protocols.
- Use access controls and network segmentation to contain potential infections.
- Automate system and software updates to close vulnerabilities.
- Enhance email filtering, web security, and download policies to counter phishing.
- Provide ongoing employee cybersecurity training.
- Maintain encrypted, verified, and immutable data backups with strict access controls.
