What is No-Where Ransomware, an Evolved Form of Ransomware? Understanding Its Mechanism and Damage

What is No-Where Ransomware, an Evolved Form of Ransomware? Understanding Its Mechanism and Damage

In recent years, cybercrime techniques have evolved, giving rise to more sophisticated attack methods than traditional ransomware. One such method is “No-Where Ransomware.”

This article explains the differences between ransomware and No-Where Ransomware, their mechanisms, and the defensive measures that companies should take.

Table of Contents

  1. What is No-Where Ransomware? Overview and Characteristics
    1. Basic Differences Between Ransomware and No-Where Ransomware
    2. Reasons Why No-Where Ransomware is Gaining Attention
  2. Mechanism and Attack Methods of No-Where Ransomware
    1. The Attack Flow of No-Where Ransomware
    2. Main Targets
    3. Damage Situation in Japan
  3. Defensive Measures Companies Should Take Against No-Where Ransomware
    1. Strengthening Network Security
    2. Importance of Data Backup and Encryption
    3. Employee Education and Improving Security Awareness
  4. Summary

1. What is No-Where Ransomware? Overview and Characteristics

Unlike traditional ransomware, No-Where Ransomware is a new cyberattack method that threatens companies not by encrypting files but by stealing information and threatening to disclose it.

Here, we will explain the differences between ransomware and No-Where Ransomware and why No-Where Ransomware is attracting attention as a new threat.

1-1. Basic Differences Between Ransomware and No-Where Ransomware

While ransomware encrypts data and demands a ransom in exchange for the decryption key, No-Where Ransomware does not encrypt data but instead steals confidential information. It then uses the stolen data as leverage to demand a ransom. In other words, with ransomware, the biggest threat was the inability to access data, which leads to business disruption. But with No-Where Ransomware, the risk of information leakage is the threat.

1-2. Reasons Why No-Where Ransomware is Gaining Attention

Attacks by No-Where Ransomware can put significant pressure on victim companies. Because the threat is information leakage rather than data encryption, it can have a tremendous impact on the company’s reputation and trust with customers, and the impact can last for a long time.

Also, dealing with No-Where Ransomware is more complex than dealing with traditional ransomware attacks. It is necessary to address a wide range of issues, including not only data recovery but also preventing information leakage, mitigating its impact, and addressing legal responsibilities and regulatory compliance. This complexity places a greater burden on the victim organization, which may result in them being forced to comply with the attacker’s demands.

2. Mechanism and Attack Methods of No-Where Ransomware

The attack methods of No-Where Ransomware are becoming more sophisticated, and they are cleverly targeting specific targets.

Here, we will explain the attack flow of No-Where Ransomware, what kind of companies and organizations are targeted, and the actual damage that has occurred.

2-1. The Attack Flow of No-Where Ransomware

No-Where Ransomware attacks often use a method called targeted attacks.

  • First, attackers thoroughly investigate the systems of the target company or organization and exploit system vulnerabilities.

After that, the attack is carried out in the following steps:

  1. Infiltration of the Target

Attackers infiltrate the target’s network using methods such as phishing emails, malicious attachments, and malware infections. In particular, phishing attacks and social engineering methods targeting employee carelessness are often used. Zero-day attacks (attacks that exploit vulnerabilities that have not yet been disclosed) may also be used.

  1. Acquisition of Access Rights and Lateral Movement

Attackers who have infiltrated the system can gain access to multiple devices and systems within the network by acquiring administrator privileges. They target important files and systems and prepare for data exfiltration.

  1. Identification and Exfiltration of Important Data

The main feature of No-Where Ransomware is that, unlike traditional ransomware, it does not encrypt data but identifies and steals valuable data such as confidential information and personal information. It secretly sends it to the outside via the network.

  1. Demanding a Ransom

Traditional ransomware demands a ransom in exchange for restoring encrypted data, but No-Where Ransomware does not encrypt data. It demands a ransom in exchange for not disclosing the stolen data.

2-2. Main Targets

No-Where Ransomware attacks mainly target companies and organizations that handle highly confidential information, such as financial institutions, medical institutions, educational institutions, manufacturers, and government agencies. This is because the data held by these organizations has a significant impact if disclosed and is of high value to attackers.

2-3. Damage Situation in Japan

According to a report by the National Police Agency, No-Where Ransomware damage has been confirmed in Japan since around 2023.

  • First Half of 2023: 9 cases
  • Second Half of 2023: 21 cases
  • First Half of 2024: 14 cases

The number of cases of damage is not so large, but the National Police Agency is also calling attention to No-Where Ransomware as a new cyberattack that exploits advanced technology.

National Police Agency “About the Threat Situation in Cyberspace in the First Half of 2024” (September 19, 2024)

Also, as an example disclosed in Japan, there is damage from No-Where Ransomware in Itami City, Hyogo Prefecture. The system of a business operator to whom Itami City outsourced operations was illegally accessed, and personal information of 20 people was leaked. Although the saved files were taken out, it did not have a major impact, but No-Where Ransomware, which secretly invades and only steals data compared to ransomware that encrypts, is easier to attack, so the damage may increase in the future.

Itami City “About the Occurrence of Leakage of Personal Information by Outsourcing Business Operators”

3. Defensive Measures Companies Should Take Against No-Where Ransomware

No-Where Ransomware is a major threat to companies. Because it threatens to disclose stolen data without encrypting it, it cannot be prevented by simply backing up data. Therefore, companies need to take comprehensive defensive measures.

Here, we will explain the specific defensive measures in detail.

3-1. Strengthening Network Security

First, strengthening network security is a basic measure to prevent No-Where Ransomware attacks. Companies should adopt “defense in depth” with multiple layers of defense. It is necessary to introduce technologies such as firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS) to quickly detect and block attacks from the outside.

In addition, regular application of security patches and software updates is also important. Attackers try to invade by targeting vulnerabilities in systems and applications, so quickly fixing vulnerabilities can prevent invasion in advance.

Also, network segmentation is an effective means. By dividing access rights within the network in detail, even if a part is compromised, it can prevent the spread to other parts. In response to this, measures such as combining two-factor authentication and backup authentication methods are required.

3-2. Importance of Data Backup and Encryption

No-Where Ransomware uses the threat of data disclosure, but if companies encrypt data in advance, they can reduce the risk of information leakage even if it is stolen. Encryption is a basic means to safely store important data, and it is a strong protection measure, especially for personal information and confidential information.

Also, regular data backups are still important. Even though No-Where Ransomware does not encrypt data, it is possible that some of the data may be destroyed. To quickly restore operations after an attack, the existence of backups is essential. It is important to store backup data safely offline or in a different location where attackers cannot access it. This allows you to restore data and resume operations quickly even in the worst-case scenario.

3-3. Employee Education and Improving Security Awareness

Many cyberattacks, including No-Where Ransomware, start with employees clicking on phishing emails or malicious links, so employee education is essential. Companies should provide employees with regular training on cyberattack methods and countermeasures to deepen their understanding of the latest threats.

Training should include how to identify phishing emails, how to handle suspicious files, and reporting procedures when feeling security concerns. Also, by creating an environment where employees can immediately report suspicious activities, it becomes possible to respond in the early stages of an attack and minimize damage. When using biometric authentication or device authentication, it is important to explain the benefits and risks and thoroughly implement countermeasures in case of loss or theft.

Furthermore, it is important to increase security literacy throughout the company. It is a great strength to strengthen the company’s cybersecurity for all employees to have security awareness and act with security risks in mind on a daily basis.

Summary

No-Where Ransomware is a new cyberattack method that uses the disclosure of data as a threat, unlike traditional ransomware. Companies need to take multi-layered defensive measures against this threat. By taking comprehensive measures such as strengthening network security, encrypting data, implementing regular backups, and employee education, it should be possible to prevent damage.

Please contact globalsupport@jiran.com for inquiries.

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