When using the internet, you're under threat from numerous areas. One of those that can damage you the most is cyber extortion.

If sensitive information falls into the wrong hands, they might try to demand a financial exchange for them to not do anything harmful.

But what exactly is cyber extortion, and how do you prevent it? Keep reading to find out.

What Is Cyber Extortion?

Cyber extortion is a cybercrime in which attackers retrieve your personal or financial data and threaten to cause you damages if you fail to meet their ransom demand.

There has been a spike in cyber extortion in recent years as more organizations and individuals now store sensitive data online. We have seen the most notorious cybercrime gangs taking down some of the biggest organizations in the world.

Cyber extortion perpetrators thrive on the value of the information at their disposal. If they are threatening you with any information, there is a high chance that you don’t want that information exposed or destroyed so they take advantage of your fear.

When the attackers make financial demands, the amount they demand from you is likely proportional to the black market value of your data. If you refuse to cooperate with them, they can sell it to the highest bidder.

The majority of cyber extortion isn’t targeted at a particular organization or individual. Attackers target several people with the hope that one or two of their targets will take the bait. Sadly, they always find victims.

In some cases, attackers focus on a particular organization or individual. Here, they are more intentional in their tactics to make their targets fall prey.

What Are the Different Types of Cyber Extortion?

Cyber extortion begins with the attacker gaining access to sensitive data on your computer network or system through ad scams, phishing emails, infected websites, etc. Interestingly, the attacker doesn't have to be the one to carry out the attack. They can leverage Cybercrime as a Service (CaaS) by hiring the services of expert cyberattackers for the job.

Let’s take a look at the most common types of cyber extortion.

1. Ransomware

Ransomware is a type of malware used by attackers to infect your network, encrypt the files on it, and block you out. Attackers take possession of your system, leaving you at their mercy.

Encrypted in email attachments, ads, and download links, your device becomes infected once you click the file. You’ll find a message encrypted on the file, stating the ransom amount that you have to pay before getting the decryption key.

Being a victim of a ransomware attack puts you in a difficult situation. First, there is a chance that your files can be completely deleted. If you choose to pay the ransom, there is no guarantee that the attacker will keep to their word of restoring your files to you. Even if they did, they might see you as easy prey and launch more attacks on you to get you to pay up.

2. Cyber Blackmail

Cyber blackmail is a kind of blackmail that happens in cyberspace. The attacker breaks into your network to retrieve Personally Identifiable Information (PII) of your intellectual data or customers and threatens to publish the data if you refuse to pay a ransom.

Cyber blackmail jeopardizes the reputation of your organization. Having the confidential data of your customers released to the public is a disaster. You might be forced to give in to the attackers' demands to protect your business.

Before you pay the ransom, you need to be sure that the attackers truly have your data. In some cases, they might be using human psychology and social engineering to trick you into believing that they have your data.

3. DDoS

A distributed denial-of-service attack (DDoS) is the use of botnets to flood a website with traffic to a point where the server is overwhelmed and shuts down.

If your website is an integral part of your business and the attacker succeeds in taking it down, you might want to give in to their demands.

The use of Ransom DDoS (rDDoS) in cyber extortion is growing in popularity as more businesses drive sales and engagements on their websites. They are more inclined to pay the ransom to have their websites operational again.

In some cases, attackers use DDoS as a scare tactic—they threaten to take down your website if you don’t pay a ransom. Unless the attacker has taken down your website, you shouldn’t be quick to give in to their demands as they may not be able to execute their threats.

4. Database Ransom

Database ransom is a type of cyber extortion where attackers compromise or steal data from databases and demand a ransom before returning the data.

Executors of database ransom mostly target organizations and individuals with weak networks. You are more prone to this kind of attack if you haven’t changed the default admin password of your system.

Having gained unauthorized access into your network, hackers will create a document containing their contact, ransom amount, and payment method.

How to Prevent Cyber Extortion

Cybercriminals have nothing on you until they break into your network or system. The overarching question is, how can you prevent them from getting in?

1. Adopt a Patch Management System

Attackers are always looking for networks with vulnerabilities.

Examine your network regularly for any loopholes that may exist and implement security patches to close them up. You can do this by having an effective patch management system on the ground.

2. Implement a Strong Password Policy

Using default administrator passwords and usernames is an opportunity for attackers to exploit your system—this is prevalent especially in database ransom cyber extortion.

Change all default passwords and ensure that the passwords adopted are complex. Don't use a single password for multiple accounts and change the password regularly.

3. Build Your Employees’ Awareness of Cybersecurity

How knowledgeable are your employees about cybersecurity?

The security of your organization against cyberattacks depends on how much your employees know about preventing them.

Train your team members on safe browsing practices. They should be able to identify phishing, indicators of infection, online scans, etc.

4. Back Up Your Data

In the worst-case scenario that you lose all your data, you’ll be relieved knowing that you have it all backed up somewhere. Don’t wait to be a victim of a cyberattack before doing the needful.

Back up all your sensitive data ahead of time—doing this will save you a lot of stress, money, and downtime in the event of a cyberattack.

5. Adopt a Complete Security Approach

Leave no room for attackers to infiltrate your network by adopting both reactive and proactive security to tighten your network security.

Proactive security helps you to stay ahead of attackers by identifying and preventing threats before they occur while reactive security puts up a defense against threats that are detected in your network.

Prioritizing Your Network Security

Cyber extortion is a game of numbers for attackers. The more systems they hack, the higher their rewards. The damage and trouble they cause you are inconsequential in their books.

It’s your responsibility to prioritize the safety of your network against any cyber threats. Thankfully, there are several cybersecurity measures you can put in place to secure your system.

If you don’t protect yourself, who will?