Five Ways You Can Use Deception in the Mythos-like AI Era

Ransomware in the Cloud: What It Is and Why It’s More Difficult to Prevent

Key Takeaways

As more companies continue to migrate their core business operations, applications and data to the cloud, hackers are rapidly changing their strategies as well. Once ransomware attacks have focused solely on encrypting files stored on on-premises servers and endpoints, but now cloud ransomware is one of the most concerning cybersecurity challenges for today’s businesses.

Hackers are now attacking every aspect of cloud computing, including software-as-a-service (SaaS) apps, cloud storage services, hybrid networks, and backups. A common misconception among many companies is that once data is “in the cloud” it is no longer their problem. This leaves significant security holes and makes cloud ransomware an even more perilous threat when it strikes.

Compared to other attacks, cloud ransomware attacks are often more sophisticated, stealthy, and hard to detect. Hackers first focus on identity theft, privilege escalation, disabling backups, and data exfiltration before attempting encryption. Ransomware attacks are often detected weeks after the hackers have been active. This makes cloud ransomware recovery more complex and expensive. Knowing more about them will help with cloud ransomware prevention and reduce the risk of businesses.

In this article, we’ll explore in depth what cloud ransomware is, how hackers operate in cloud environments, why it’s more difficult to detect than traditional network attacks, and how businesses can prepare for an attack.

What Is Cloud Ransomware?

Ransomware attacks on cloud infrastructure, cloud apps, cloud storage, and cloud-connected backups are called cloud ransomware. These attacks are not aimed at the files on computers and are not trying to prevent data stored on local devices from being accessed, but rather they are trying to disrupt business operations by targeting systems used to store, manage and access critical data.

These attacks are directed at SaaS applications (like Microsoft 365 and Google Workspace), cloud storage, public and private cloud workloads, cloud backup, virtual machines and hybrid computing environments that connect on-premises data center resources to the cloud.

If cybercriminals gain access to synced folders, cloud storage, admin accounts, or backup management consoles, they can steal, delete, or encrypt data across multiple environments from a single compromised account. Because cloud resources are highly interconnected, ransomware attacks can spread quickly and cause widespread damage. As a result, effective ransomware cloud security must go beyond traditional endpoint protection.

How Cloud Ransomware Works

Cloud ransomware is seldom an isolated attack. It often involves a multi-faceted attack plan that aims to cause maximum disruption and remain undetected. Today’s hackers are less interested in immediate encryption and more in taking control of the recovery process.

1. Identity Theft for Initial Access

Cloud ransomware attacks typically start with gaining access. This may be through phishing, stolen credentials, weak passwords, insecure APIs, unsecured cloud service configurations, or insecure remote access tools. The attack often begins with compromised credentials, rather than software. This is particularly concerning in cloud environments which heavily rely on identity. With stolen administrator credentials, attackers can navigate through the environment, authenticating their actions, which makes their actions appear legitimate to security systems. With a single administrator account, the entire network can be compromised, including storage, backup, cloud workloads, and security consoles.

2. Mapping and Escalation

Once they are in, hackers spend some time reconnoitering. They seek to determine where critical information and accounts with administrative rights are stored, where backups are kept, and where security controls reside. The goal is to determine how best to disrupt normal operations and how to make recovery as challenging as possible.

This phase can go undetected as activities such as checking permissions, viewing dashboards, or inspecting storage settings can seem like normal administrator activity. The attackers also actively escalate privileges to turn off security controls and access other connected systems.

Guide To Strengthening Your Defense Against Ransomware With Fidelis
XDR for Ransomware

3. Backup Sabotage Before Encryption

It’s common for companies to believe their cloud backups are protected from ransomware because they have backups. Malicious actors know this and frequently attack backups before encryption. They can remove snapshots, remove retention points, change backup policies, or even get access to backup administrators. This can prove to be a nightmare when attempting to recover.

4. Data Exfiltration and Double Extortion

Contemporary ransomware operators seldom stop at encrypting. They also steal customer data, financial data, intellectual property, and compliance data before encrypting files. This is called a double extortion attack. Even if the attack is overcome by restoring backups, hackers can threaten to release the data unless the ransom is paid. This makes ransomware protection for cloud data, a business disruption event, and a data breach event.

5. Encryption and Business Disruption

The last step is encryption and ransom. Cybercriminals initiate encryption on cloud applications and storage, synced systems, and sometimes even backups. This leads to application outages, shutdowns, and an inability to serve customers. By the time encryption takes place, the damage has already been done. This is the front stage of cloud ransomware but typically the last in a series of events.

Why Cloud Ransomware Is Harder to Detect

A major issue is that it is dynamic distributed and so on, not that it is more difficult to detect than endpoint. The cloud is dynamic, distributed, and relies heavily on identity and access, which alters the nature of attacks.

Legitimate Credentials Make Malicious Activity Look Normal

While conventional ransomware attacks may involve blatant malware, cloud ransomware attacks often involve legitimate credentials, session tokens and administrator rights. So, attacks may appear as legitimate activities. Logging into an active admin account may not raise alarms, even if the user is malicious. Standard API requests, permission adjustments, and bulk file access can be hidden among typical cloud operations. This makes early detection extremely difficult.

Confusion Around Shared Responsibility

Some companies think cloud providers are responsible for security. However, providers only secure the cloud, while customers are responsible for identity and access management, backup security, data protection, and threat monitoring. This leads to security gaps. When companies think the provider is securing the infrastructure for ransomware cloud security, hackers can exploit vulnerabilities in areas that are secured by the customer.

Limited Visibility Across Hybrid Environments

Few businesses are solely in the cloud. They combine public cloud, private cloud, SaaS, on-premises services and third-party services. Hackers use these integrations to move around the business. Without a holistic view of the enterprise, security staff may not realize the full extent of the attack. This slows down investigation and provides more time for the attack to spread.

Backup Systems Are Often Exposed

There are plenty of companies asking:

is cloud backup safe from ransomware?

It depends on how it is set up. When backup systems are connected to production networks and share the same credentials, they are a prime target. Without immutability, segmentation, and separate credential protection, backup systems are exploited before we even know we’re under attack. As a result, cloud ransomware protection requires that backup security be considered an integral security function as opposed to simply a recovery mechanism.

Cloud Ransomware Protection: What Organizations Must Do

To protect against cloud-based ransomware, prevention, detection, response, and recovery are critical. There’s no silver bullet technology. Companies should focus on the attack lifecycle.

Strengthen Identity and Access Management

With most of the cloud ransomware attacks starting with the misuse of credentials, identity security is the first line of defense. Organizations should have multi-factor authentication, least privileged access management, role-based access control, and audit credentials. Keeping track of user activity is also important as attackers use legitimate credentials to evade detection. Effective access controls reduce the impact of any compromised account and are the foundation for effective cloud ransomware protection.

Protect Cloud Backups Properly

Companies need to shift their focus from backups being available to cloud backup ransomware protection. Immutable backups, air-gapped backups, separate backup administrator access and secure retention policies and regular backup testing are key. Backups must be regularly verified to ensure they can be restored in a ransomware attack. This helps answer questions like does cloud backup protect against ransomware and ensure recovery is possible after a significant attack.

Use Behavioral Monitoring for Early Detection

It is no longer sufficient to rely solely on signature-based detection for ransomware cloud protection. Cybersecurity defenders must monitor suspicious behavior, logins, file changes, rapidly changing permissions, bulk downloading, lateral movement, and API misuse. These analytics detect intrusions in the early stages of attack, before encryption occurs. Early detection enables quicker recovery from ransomware attacks in cloud environments and minimal business impact.

Segment Critical Systems

Where possible, critical systems – such as backups, admin accounts, sensitive workloads and cloud storage locations – should be segmented. If a breach occurs, they should be unable to freely roam. Segmentation limits the scope of an attack and facilitates incident isolation.

Build and Test Incident Response Plans

Knowing how firms will respond to ransomware attacks on the cloud prior to an event is more effective than reacting on the fly. Plans should address isolation, recovery, legal escalation, management of decision making, communication, and third-party assistance. Cloud security solutions for ransomware must be regularly tested through training exercises and drills, not just documented in policies. Preparedness is key to recovery speed and damage control.

Final Thoughts

The rise of cloud computing has revolutionized business operations, but it has also widened the threat landscape for ransomware attacks. Cloud ransomware is no longer a new threat – it has become a real business threat. With credential theft, backup corruption, data theft and extortion, cloud ransomware is more advanced than previous ransomware and harder to detect with traditional security solutions.

The question is how well can your organization detect and recover from it? This is where Fidelis Security® come into play. By gaining deep insight into hybrid and multi-cloud environments, looking for threats before the encryption process starts, and monitoring identities for suspicious activity, as well as providing robust ransomware response capabilities for cloud, businesses can detect threats before they begin to encrypt and defend against critical cloud data loss.

Fidelis Security® assists security teams to build strong ransomware cloud security by integrating early detection, cloud workload protection, network monitoring and incident response into one cohesive approach. This helps companies achieve proactive ransomware protection for cloud data – not just recovery. The best ransomware solution for cloud data is preparation rather than negotiation – and the right security partner prepares us well.

Our customers detect post-breach attacks over 9x Faster

  • Detect Advanced Threats Before Damage Escalates Trusted
  • Cybersecurity Leader for 20+ Years
  • See why security teams choose us over other solutions
Request a DemoRead Datasheet

About Author

Kuheli Raha Roy

Kuheli Raha is a technical writer specializing in cybersecurity and emerging technologies. With five years of experience in creating research-driven content, she translates complex technical concepts into clear, engaging insights that help readers stay informed about evolving cyber threats and security innovations.

Related Readings

One Platform for All Adversaries

See Fidelis in action. Learn how our fast and scalable platforms provide full visibility, deep insights, and rapid response to help security teams across the World protect, detect, respond, and neutralize advanced cyber adversaries.