For years, ransomware attacks have followed a predictable pattern: hackers encrypt an organization's files and demand a ransom in exchange for the decryption key. However, a new, even more dangerous trend is emerging—cybercriminals are moving away from encryption-based ransomware and shifting toward pure extortion.
Rather than locking you out of your own data, hackers are now stealing sensitive information and threatening to release it unless a ransom is paid. This method, known as data extortion or leakware, eliminates the risk of victims recovering their data from backups, giving attackers even more leverage.
So, why are hackers abandoning traditional ransomware? What does this mean for your business? And how can you protect yourself from this evolving cyber threat? Let’s break it down.
With improved backup solutions, endpoint protection, and cyber resilience strategies, many organizations have become better at restoring encrypted files without paying ransoms. This has forced cybercriminals to change tactics. Instead of relying on encryption, they now focus on stealing sensitive data and using the threat of exposure as leverage.
Originally, ransomware attacks worked by encrypting a victim’s data and demanding payment for its release. But in recent years, attackers added double extortion, where they also exfiltrate the data and threaten to release it publicly if the ransom isn’t paid. Now, triple extortion attacks have emerged, where hackers:
Demand a ransom from the primary victim (the hacked company).
Threaten to release stolen data if payment isn’t made.
Extort the victim’s customers, vendors, or partners whose data was compromised.
This tactic has proven to be far more effective and lucrative than traditional encryption-based ransomware.
Businesses that suffer a data breach often face legal and regulatory consequences, especially if they handle sensitive customer data. Cybercriminals exploit these risks by threatening to leak stolen information unless the victim pays up.
For SMBs, a public data leak can lead to:
Legal fines and lawsuits (GDPR, HIPAA, PCI-DSS violations).
Loss of customer trust and business reputation damage.
Financial losses from fraud, identity theft, and class-action lawsuits.
Rather than dealing with these consequences, many companies choose to quietly pay the extortion demand—fueling the cycle.
In 2023, the MOVEit file transfer vulnerability led to one of the largest extortion-based cyberattacks. The Clop ransomware group exploited the flaw, stole sensitive data from hundreds of organizations, and demanded ransoms without deploying encryption. Victims included banks, universities, government agencies, and healthcare providers.
ALPHV (also known as BlackCat) is a ransomware gang that operates exclusively through data extortion. Instead of encrypting files, they breach networks, steal data, and then publish victim names on dark web leak sites. They pressure victims by threatening to sell or release the stolen data.
In 2023, major Las Vegas casinos suffered cyberattacks that resulted in millions of dollars in ransom payments. While encryption was used in some cases, attackers primarily leveraged stolen customer and operational data to extort casinos into paying large sums.
These attacks show that the ransomware industry has evolved, and data theft itself is now the main weapon.
Backups Don’t Help – Traditional ransomware victims could restore encrypted files using backups. With data extortion, backups don’t matter because the hackers still have the stolen information.
More Pressure on Victims – The risk of customer data leaks, regulatory fines, and lawsuits makes extortion more damaging than simple file encryption.
Larger Attack Surfaces – Attackers don’t need ransomware deployment; they can exfiltrate data through misconfigured cloud storage, phishing, or supply chain vulnerabilities.
Victims Pay More Often – Because the consequences of a data leak are severe, businesses are more likely to pay the ransom quietly to avoid PR disasters and compliance penalties.
While cybercriminal tactics continue evolving, there are proactive steps SMBs can take to reduce their risk.
Ensure that sensitive data is only accessible to employees who absolutely need it. Use:
Role-based access controls (RBAC) to limit permissions.
Multi-factor authentication (MFA) for all critical systems.
Encryption for sensitive data, so even if stolen, it remains unreadable.
Use security monitoring tools to detect unusual data transfers and exfiltration attempts. Consider:
Endpoint Detection & Response (EDR) solutions that track suspicious activity.
Data Loss Prevention (DLP) tools that prevent unauthorized data transfers.
SIEM (Security Information and Event Management) platforms that analyze log data for threats.
Since phishing remains the top attack vector, employees must be trained to:
Recognize phishing emails and social engineering attempts.
Avoid clicking on suspicious links or downloading unverified attachments.
Report security incidents immediately to IT teams.
Many extortion attacks exploit supply chain vulnerabilities. Businesses should:
Vet third-party vendors for cybersecurity compliance.
Limit third-party access to internal systems and data.
Require vendors to adhere to security best practices like MFA and encryption.
A well-prepared business can reduce the impact of an extortion attack. Create a cybersecurity incident response plan that includes:
A defined response team responsible for handling attacks.
A playbook for responding to data extortion threats.
Legal and PR strategies in case sensitive data is leaked.
Cyber insurance policies now cover data extortion payments, legal costs, and response efforts. However, insurers require businesses to have strong security controls in place before offering coverage.
As businesses harden their defenses against traditional ransomware, attackers will continue evolving their methods. We can expect:
AI-Powered Extortion – Hackers using AI to automate phishing attacks, analyze stolen data for high-value targets, and craft more effective extortion threats.
Deepfake-Based Fraud – Cybercriminals using AI-generated audio/video to impersonate executives and demand payments.
More Attacks on Critical Infrastructure – Healthcare, finance, and government sectors will face more targeted extortion attacks due to the high value of their data.
Cybercriminals are business-minded—they will always choose attack methods that maximize profit with minimal risk. SMBs must stay vigilant and adapt their cybersecurity strategies accordingl
The shift from ransomware to pure data extortion is a game-changer for cybersecurity. SMBs that rely on backups alone are no longer safe, as cybercriminals increasingly focus on stealing and exposing sensitive data instead of encrypting it.
To stay ahead of these threats, businesses must invest in proactive security measures, monitor data access, and prepare for worst-case scenarios. Cyber extortion is here to stay, but with the right strategies, SMBs can reduce their risk and protect their future.
Need expert guidance on cybersecurity? Securafy helps SMBs strengthen their defenses against evolving cyber threats. Contact us today to learn how we can protect your business.