Financial Self-Defense
Today we need to make sure your financial self-defense is in overdrive. We must be on guard with so many hackers, scammers, and fraudsters. One thing we need to be cautious of is ransomware. What is it, and how can we protect ourselves from it?
Ransomeware
When we think of ransom, we typically think of a black-and-white movie. And it has a kidnapper leaving notes made from various newspaper cuttings. Today, a ransom is much less exaggerated, much more common, and targets something you might not expect: your computer files.
In late 2013, the ransomware threat was on the list of things that can kill your computer alongside bugs and crashes. Hackers made a new bug capable of taking over a computer, encrypting all its files, and displaying a brief message demanding money to decrypt them. Sometimes, affected companies or individuals would pay up, the hacker would decrypt the computer as promised, and everyone would be on their merry way. Victims would sometimes refuse to pay the fees in the given time and would then lose their valuable files forever. And sometimes, victims would fork over the cash, only to have the hackers disappear with the files still locked and, therefore, as lost as before the victims paid up.
A scam that costs
One study estimates that in its first 100 days as a scheme, the ransomware infected 250,000 computers. It earned the hackers collected $6 million in bitcoins. If that trend continued, we could expect that they’d hacked at least 24 million computers in the past two years, including one major hospital that reportedly forked over $17,000 to get its files back.
The original operator of ransomware, Cryptolocker, was shut down in May 2014. Still, many ransomware copies arose shortly after and continue to wreak havoc. The program continues to evolve, locking computers and displaying menacing countdowns to create a heightened sense of urgency to pay up.
The question now, of course, is what you should do to protect yourself. How can you amp up your financial self-defense? For starters, if the only computer you have to worry about is a private computer, ransomware is a less significant risk. Ransomware scammers tend to target the computers of companies that can hand over large sums of money. If your computer handles the more significant functions of a company, there are still some steps you can take to protect yourself.
Don’t trust online solutions.
For starters, many software programs promise to completely rid your computer of ransomware, but those are best left on the virtual shelf. Ironically, some of those alleged file-saving downloads are ransomware in disguise. Your best bet is to back up your files; however, you can – onto an external hard drive, onto a separate computer, or even on paper. Anything you do will ensure that, when the hackers come, you’ll already have those encrypted files elsewhere. It’s advisable to check at least once a month to ensure everything you need is safely backed up.
Hold onto your money.
While it might seem like the only option that gives you a chance to get your files back, the FBI has issued a statement asking people not to pay such ransoms. If hackers get paid, they have more incentive to continue, and payment doesn’t influence whether they decrypt your files or not. “The FBI does not condone the payment of ransom, as payment of extortion monies may encourage continued criminal activity, lead to other victimizations, or be used to facilitate serious crimes,” as FBI Special Agent Christopher Stangl elaborates in an interview. If you’re desperate for your files, paying may seem like the only option, but consider the difference if no one pays them anymore. Crime syndicates would be stopped without any work from the FBI.
Call the cops, but don’t hold your breath.
Many are currently asking whether the FBI has done anything significant to this point. This questioning includes Sen. Ron Wyden, who wrote to James Comey, the director of the FBI, to ask how the agency intended to clean up the ransomware problem. Comey responded that they were making progress but pointed out that making arrests wasn’t easy as “most of the top cybercriminal actors are located outside of the United States.”Still, he went on to assure Wyden that “The FBI is committed to following the money in investigating all crimes with a financial component; ransomware is no exception.”
Back up and stay safe.
While the FBI has its best people on the task of catching these cyber culprits, it’s your responsibility to be as safe as possible until they do. Back your files up. Don’t click on any sketchy-looking links. Buy security that a trusted provider assures you is safe. Ransom is no longer a thing of just black-and-white movies. In this digital age, it’s still our job to protect ourselves.
Now you have the tools to keep your financial self-defense up. And with these tips, you can help your family and friends from becoming victims. Check out our other posts on the MoneySmart Tips Blog.
