What Is Ransomware as a Service (RaaS) and How to Protect Your Business

Ransomware as a Service (RaaS) is a model where hackers can purchase ready-made ransomware tools to launch attacks on businesses. Affiliates purchase ransomware code to initiate these attacks without needing to develop their own malware. This article explains what RaaS is, how it works, and how to defend your organization against it.

Key Takeaways

• Ransomware as a Service (RaaS) is a subscription-based cybercrime model that allows attackers with little technical skill to launch ransomware campaigns using off-the-shelf tools.

• These attacks follow a structured process: gaining initial access (often via phishing), encrypting or stealing data, and issuing ransom demands - causing major disruption for businesses.

• Prevention starts with layered cybersecurity defenses, continuous employee awareness training, and frequent data backups to enable recovery. An unsuspecting user can easily trigger a ransomware attack by opening malicious email attachments or clicking on compromised URLs, underscoring the importance of vigilance and robust security measures.

Introduction to Ransomware as a Service

Ransomware as a Service (RaaS) is a cybercrime-as-a-business model in which ransomware creators lease out their malware tools to other attackers - known as affiliates. These affiliates can launch attacks without developing the code themselves.

RaaS operators are the developers who create and maintain these ransomware tools, selling them to other hackers. It’s a win-win: affiliates profit from extortion, while the developers earn passive income. The model mirrors legitimate SaaS businesses, offering access to ransomware kits, infrastructure, and even customer service. RaaS enables widespread attacks with minimal technical expertise, making it a growing threat to businesses of all sizes.

Understanding Ransomware as a Service (RaaS)

RaaS has transformed the cybercrime landscape. Developers now market ransomware tools as commercial products - complete with documentation, updates, and support. These kits are sold on dark web marketplaces and sometimes advertised via underground forums or encrypted messaging platforms.

This model drastically lowers the barrier to entry for would-be attackers. Affiliates - often with limited technical knowledge - can execute attacks using user-friendly ransomware kits. RaaS kits are sold to affiliates, allowing them to execute attacks. The creators maintain and update the infrastructure, while the affiliates do the dirty work.

The decentralized nature of this model makes attribution difficult and takedown efforts more complex. Each attack may involve a different combination of developers, affiliates, and access brokers - spreading the risk and increasing resilience for the attackers.

Definition and Types of Ransomware

Ransomware is a type of malware designed to hold data hostage by encrypting it and demanding a ransom payment in exchange for the decryption key. This malicious software can cripple businesses by locking them out of their critical data and systems. There are several types of ransomware, each with its unique method of causing disruption:

• Encrypting Ransomware: This is the most common type, where the ransomware uses sophisticated encryption algorithms to lock files on the victim’s system. The attackers then demand a ransom payment in exchange for the decryption key needed to unlock the files. Examples include the infamous CryptoLocker and WannaCry ransomware.

• Non-Encrypting Ransomware: Unlike encrypting ransomware, this type does not encrypt files. Instead, it may lock the screen or restrict access to the system, making it unusable until the ransom is paid. Screen lockers are a common form of non-encrypting ransomware.

• Ransomware as a Service (RaaS): This is a business model where ransomware developers sell or lease their malware to other attackers, known as affiliates. These affiliates then use the ransomware to carry out attacks, often sharing a portion of the ransom payments with the developers. This model has lowered the barrier to entry for cybercriminals, making ransomware attacks more widespread.

Understanding these types of ransomware and their mechanisms is crucial for developing effective defenses against them.

History and Evolution of Ransomware

The history of ransomware dates back to 1989, with the first known attack being the AIDS Trojan, also known as the PC Cyborg virus. This early form of ransomware was rudimentary, demanding a ransom payment to be sent to a P.O. box in Panama. Since then, ransomware has evolved significantly, becoming one of the most formidable cyber threats today.

In the early 2000s, the landscape changed with the emergence of encrypting ransomware, which used encryption algorithms to lock files and demand ransom payments for their release. A notable example is the CryptoLocker ransomware variant, released in 2013, which used a 2048-bit RSA key pair to encrypt files, making it nearly impossible to decrypt without the private key.

The rise of cryptocurrencies, particularly Bitcoin, has further fueled the growth of ransomware attacks. Cryptocurrencies provided a level of anonymity that made it easier for ransomware attackers to receive payments without being traced.

Modern ransomware variants, such as Maze ransomware and DarkSide ransomware, have introduced new tactics like double extortion, where attackers not only encrypt files but also threaten to publish stolen data if the ransom is not paid. These sophisticated ransomware attacks have targeted high-profile organizations, causing significant financial and reputational damage.

The continuous evolution of ransomware highlights the need for robust cybersecurity measures to protect against these ever-changing threats.

The RaaS Business Model

RaaS mimics legitimate SaaS structures. Developers provide affiliates with the ransomware payload, instructions, and often decryption keys. They may also offer support forums, dashboards, and user analytics. RaaS affiliates use these provided ransomware tools to carry out attacks, posing unique cybersecurity challenges.

Revenue is generated through one-time fees, monthly subscriptions, or profit-sharing agreements - often taking 30–40% of each ransom collected.

Affiliates benefit from:

• Pre-built ransomware kits

• 24/7 technical support

• Access to compromised systems from access brokers

• Marketing materials or prewritten ransom notes

This commercialization allows individuals without deep hacking skills to carry out damaging attacks, expanding the reach of ransomware across industries and regions.

Prominent RaaS Variants

Several well-known ransomware families have operated under the RaaS model:

• REvil (Sodinokibi): Responsible for major attacks on JBS USA and Kaseya in 2021. Known for aggressive double extortion tactics and countdown timers.

• LockBit: Offers performance bonuses to affiliates and has recruited insiders at target organizations.

• Hive: Emerged in 2022, focusing on financial and healthcare institutions using advanced techniques like pass-the-hash.

• DarkSide: Gained notoriety after the 2021 Colonial Pipeline attack, leading to fuel shortages across the U.S. East Coast.

These variants continuously evolve, updating features and tactics to bypass detection and maximize ransom payouts. The most sophisticated RaaS operators provide extensive support and services that rival those offered by legitimate SaaS vendors, enhancing their criminal enterprises on the dark web.

How RaaS Attacks Are Carried Out

RaaS attacks generally follow three key stages: ransomware aims to infiltrate a target system to execute its encryption processes and demand a ransom.

Initial Access and Infection

Attackers typically gain access through phishing emails, malicious attachments, or exploiting known vulnerabilities such as Remote Desktop Protocol misconfigurations. For example, LockBit has widely used phishing campaigns to compromise victims. Ransomware can be introduced through a malicious link in a phishing email, which facilitates the infection process.

Regular phishing simulations and patching known vulnerabilities are critical to reducing this initial risk.

Encryption and Data Exfiltration

Once inside the system, attackers encrypt data and often exfiltrate sensitive files. Victims lose access to critical files and face the threat of public exposure.

Many ransomware strains now combine encryption with double extortion to increase pressure on victims to pay.

Ransom Demands and Negotiations

Attackers issue ransom demands, usually in cryptocurrency. Tactics like countdown timers and double extortion (threatening to leak stolen data) increase urgency. Paying the ransom is a critical decision faced by victims, carrying significant risks such as no guarantee of data recovery and potentially encouraging future attacks, along with ethical and financial implications.

For instance, Black Basta uses threats of public embarrassment to push victims to negotiate quickly. Dharma attacks have demanded payments ranging from 1 to 5 bitcoins.

The Impact of RaaS on Businesses

Financial Costs

The average ransomware breach costs $4.91 million. Small and medium-sized businesses (SMBs) are especially vulnerable - 82% of ransomware incidents target them. Ransomware payments have significantly impacted businesses financially, with increasing sums being demanded and paid.

Beyond ransom payments, costs include downtime, incident response, legal fees, and lost business opportunities.

Operational Disruptions

Operations often grind to a halt during and after a ransomware incident. One in five businesses experiences a complete shutdown until the threat is resolved. 

Identifying and isolating infected devices immediately is crucial to prevent the spread of ransomware within the network.

Delays can last days or weeks, damaging supply chains, productivity, and revenue.

Reputational Damage

Trust erosion is a major consequence. Customers, partners, and investors may view the organization as insecure - even long after the event. Protecting customer data is crucial to maintaining trust and preventing reputational damage.

Victims often struggle to recover their reputation, especially if data leaks are involved.

Preventing RaaS and Ransomware Attacks

Implementing Robust Cybersecurity Measures

• Use multi-factor authentication across all systems

• Employ endpoint detection and response (EDR) or extended detection and response (XDR) platforms

• Monitor activity with SIEM tools

• Apply the 3-2-1 backup rule (three copies of data, two media types, one offsite)

• Ensure you have backup data to enable quick recovery and minimize downtime after an attack

These foundational steps reduce the likelihood and impact of ransomware.

Reducing the Attack Surface

Reducing the attack surface is a critical strategy in defending against ransomware attacks. By minimizing the number of potential entry points for attackers, organizations can significantly lower their risk of a ransomware infection. Here are some essential steps to achieve this:

• Regularly Update Operating Systems and Software: Keeping operating systems and software up to date is crucial. Regular updates and patches fix known vulnerabilities that ransomware attackers could exploit.

• Use Antivirus Software: Deploying reliable antivirus software helps detect and remove ransomware programs before they can cause harm. Ensure that the antivirus software is regularly updated to recognize the latest ransomware variants.

• Conduct Regular Backups of Critical Data: Implementing a robust data backup strategy is essential. Regularly back up critical data and store copies offline or in the cloud. This ensures that data can be restored in the event of a ransomware attack, reducing the impact of data loss.

• Educate Employees on Phishing Emails: Phishing emails are a common method for delivering ransomware. Educate employees on how to identify and avoid phishing emails. Regular training and simulations can help reinforce this knowledge.

• Implement Robust Security Software: Use comprehensive security software solutions, such as firewalls and intrusion detection systems, to monitor and protect the network. These tools can help detect and block ransomware attacks before they infiltrate the system.

• Deploy Ransomware Protection Solutions: Consider implementing specialized ransomware protection solutions, such as crypto ransomware detectors, which can identify and block ransomware attacks in real-time.

By taking these proactive steps, organizations can reduce their attack surface, making it more difficult for ransomware attackers to infiltrate their systems and cause damage.

Access Controls and Network Security

• Implement zero-trust architecture

• Use network segmentation to limit lateral movement

• Conduct regular vulnerability scans and patching as aligned with Tier 4 NIST Framework Guidelines

• Deploy SOAR tools to accelerate response

Securing vulnerable devices is crucial to prevent ransomware attacks, as these devices can serve as entry points for malware, especially in remote work environments.

These technical measures create multiple layers of defense.

Employee Training and Awareness

Human error remains one of the weakest links. Regular security awareness training - especially around phishing and social engineering - helps employees spot and report threats.

Well-informed staff are a frontline defense against initial compromise.

Regular Backups and Disaster Recovery Plans

Ensure automated, offline, and cloud-based backups are in place and regularly tested. Build and maintain a disaster recovery plan to restore systems quickly in the event of an attack. Having a robust data recovery plan is crucial to address the challenges of recovering data after a ransomware incident, using methods like decryption tools and restoring from backups.

Working with Law Enforcement

Engaging law enforcement can shorten containment timelines and support investigations. Reporting ransomware incidents to law enforcement is crucial as it helps identify those responsible and prevents future attacks. Authorities often coordinate takedowns and can provide guidance on ransomware response.

Incident Response Planning

A clear incident response plan helps contain threats, restore systems, and minimize data loss. The CISA ransomware guide offers helpful steps for building a tailored response strategy. The plan should include:

• Roles and responsibilities

• Communication protocols

• Containment and recovery procedures

• Regular testing and updates

Preparation is critical to minimizing the chaos of a live attack.

CyVent’s Role in Protecting Against RaaS

CyVent partners with small and mid-sized businesses, as well as MSPs, to simplify the complexity of cybersecurity decisions. Our team helps clients assess risks, select proven technologies, and implement solutions that defend against ransomware operators who deploy these attacks through RaaS and other threats.

We offer tailored cybersecurity solutions that save time and ensure your security investments are aligned with your business goals and your budgets.

Contact CyVent for a Free Consultation

If you’re concerned about ransomware or need help choosing the right cybersecurity tools, CyVent can help.

Contact us for a free, confidential consultation to explore how we can support your internal security team or help you grow as a managed security service provider.

Summary

Ransomware as a Service (RaaS) is making it easier than ever for threat actors to launch damaging cyberattacks. With its low barrier to entry and widespread availability, RaaS poses a serious risk - especially for small and medium-sized organizations. The growing threat of widespread ransomware attacks, often fueled by phishing tactics and the democratization of ransomware, further escalates these risks.

Understanding how RaaS works and taking proactive steps - like hardening defenses, training staff, and planning for incidents - can make the difference between recovery and catastrophe.

CyVent is here to help you navigate these decisions with confidence. Learn more in our guide: MSSP, EDR, MDR or XDR: What’s The Difference?