Our dependency on the internet has skyrocketed so much in recent years that cybercrime cases have increased enormously. Hence people today are largely concerned about data security, and other related aspects. People use passwords, biometric authentications, and other methods to protect themselves from crimes. However, many aren’t aware of cyber extortion, its consequences, classifications, and even the preventive measures to be taken. So, let’s look at the fundamental concepts of cyber extortion in the below section.

What is cyber extortion?
Cyber extortion is one of the most dangerous cybercrimes to target individuals as well as businesses. Hackers and cybercriminals coerce or threaten corporate companies, organizations, businesses, and even individuals to pay a handsome amount or give up control over confidential data. Unfortunately, if the demand is unmet, most hackers follow through with the threat, causing service disruption, financial loss, PII leakage, and reputation damage.

Several cyber extortion cases have been reported over the years, and both businesses and national organizations have suffered due to such threats. Most hackers demand parties to pay ransomware in local currencies or cryptocurrencies. Additionally, cybercriminals use phishing emails, DDoS, ransomware, and other mediums to gain control over confidential information, personally identifiable data, and even an entire core system.

What are the classifications of cyber extortion?
While there are many types of cyber extortion, we have listed the most common ones with the highest risk factor.

Ransomware
A ransomware attack is when the attackers infect a computer which leads to encrypting files, stored documents, core programs, etc. This is the most common type of cyber attack. In addition, a new type of ransomware is often used, named fileless ransomware. It doesn’t infect the files like regular malicious codes. Instead, it writes into the system’s memory, infecting the operating system.

Phishing emails
Phishing emails are one of the significant ways of cyber extortion. Most often, you will find links attached to emails. Once you click on them, you will be redirected to an unknown and unsecured website. Hackers track the IP addresses and gain access to the systems through the websites. They can either implant ransomware or gain remote control over the system’s OS.

DDoS attacks
DDoS, or distributed denial of service, is the most dangerous form of cyber extortion where hackers gain control over personal and private information. They then demand a massive sum of money in return for restoring the regular web traffic or the service flow.

Database hacking
Every company or organization uses different databases to store customer information, confidential files, etc. Hackers usually target these databases to gain access to information and data files that matter the most to the concerned organization. Until and unless the targeted party fulfills the demand, cyber criminals do not relinquish control over the DBs.

Double extortion
Double extortion is when hackers make copies of the database-stored files and threaten to publicize them if the demand is unmet. This ensures one still has a hold over confidential company information in case the targeted party regains access to its data files.

Is cyber extortion something to be concerned about?
Cyber extortion is a matter of grave concern. It can lead to consequences like:

Monetary or financial loss

Loss of customer trust

Publicizing private information

Loss of control over confidential company data

Significant reputation damage

How to report cyber extortion?
There are two significant ways of reporting cyber extortion:

Reporting any incident related to cyber extortion to the concerned national or federal law enforcement department while following all the legal procedures.

Notifying the concerned party about the scam or extortion and urging them to secure their information, change passwords, and take necessary steps.

What are the best preventive measures for cyber extortion?
Many people do not have much knowledge about preventing cyber extortion, which is why they fail to take proper action at the right time. So, let’s look at how you can prevent crimes easily.

Backing up the data files from the database and storing them in confidential places can reduce the risks of cyber extortions.

Companies must implement military-grade 256-bit encryption programs to encrypt data files and close any backdoor in the security layers.

Using different authentication systems for accessing software or the core system, like biometrics, password, OKTA, and many more, can also reduce the exposure and risks of cyber extortions.

Businesses must implement access controls so that not everyone can remotely access the files and databases.

Lastly, cyber extortion can be prevented with a disaster recovery plan where businesses can shut down the main system in case of a data breach and continue operations.

Conclusion
Cyber extortion can cause enormous damage to businesses and individuals, whether in terms of financial losses or reputation damage. So, taking appropriate steps to protect your database is extremely important. Taking the necessary steps and educating oneself about cyber extortion will help prevent any cyber attack in the future.