Cybercrime has undergone a significant shift in recent years, adopting structures that resemble conventional business models. What was once the work of highly skilled hackers now appears to be more accessible, potentially leading to an increase in cyber threats worldwide.
One emerging trend in this landscape is a service-based approach that allows ransomware operations to scale in new ways. Functioning similarly to legitimate software as a service (SaaS) platforms, this model lowers barriers to entry, making cyber extortion more attainable for a wider range of actors. As a result, businesses, governments, and individuals face growing concerns about their digital security.
But how did ransomware evolve into an organized service? And what does this mean for the future of cybersecurity? Let’s explore the rise of Ransomware as a Service (RaaS) and the impact it may have.
Current State of RaaS
Ransomware attacks differ based on the targeted organization and the attacker’s intent. While financial gain is often the primary motive, some attacks aim to disrupt operations, leading to downtime and reputational damage. Threat actors may also use additional tactics, such as distributed denial of service (DDoS) attacks, to intensify pressure on victims. According to Statista, in 2023, ransomware accounted for nearly 70% of reported cyberattacks globally, with over 317 million attempts recorded. Businesses in France and South Africa faced the highest number of ransomware attacks.
In the first quarter of 2022, 31 active Ransomware-as-a-Service (RaaS) and extortion groups were operating globally, marking a significant rise from 19 groups in the same period of 2021. These cybercriminals primarily target sectors that store large volumes of data and play critical roles, such as healthcare and manufacturing.
Between 2022 and 2023, ransomware payments surged globally, rising from $457 million to $1.1 billion. In the fourth quarter of 2023, 29% of ransomware attacks led to ransom payments, a decline from 41% in the previous quarter. Despite this drop, the average ransom payment also fell significantly during this period, decreasing from over $850,000 to $569,000.
What is Ransomware as a Service (RaaS)?
Ransomware as a Service (RaaS) is a business model in which cybercriminals create and distribute ransomware tools, offering them to affiliates or other attackers in exchange for a fee or a share of the ransom payments. It operates similarly to legitimate Software as a Service (SaaS) platforms, providing ready-to-use ransomware kits that require little to no technical expertise to deploy.
In this model, RaaS providers handle the development and maintenance of ransomware, including encryption algorithms, payment processing, and even customer support for affiliates. The affiliates, in turn, execute attacks by distributing the ransomware to victims, typically through phishing emails, malicious websites, or exploiting software vulnerabilities. When a ransom is paid, the earnings are divided between the provider and the affiliate, following a predetermined revenue-sharing agreement.
This service-based approach lowers the entry barrier for cybercriminals, making ransomware attacks more accessible and scalable. As a result, even individuals with limited technical skills can participate in ransomware campaigns, contributing to its increasing prevalence in the cybersecurity landscape.
How Does Ransomware as a Service Work?
The RaaS business model follows a structured, service-based approach, enabling cybercriminals to launch ransomware attacks without needing to develop their own malware. It typically operates in the following stages:
-
Platform Development & Distribution: RaaS providers create and maintain ransomware strains, ensuring they remain effective against security measures. These providers operate on dark web forums or underground marketplaces, where they advertise their ransomware packages and recruit affiliates.
-
Subscription or Revenue-Sharing Model: Just like legitimate SaaS platforms, RaaS follows different pricing structures. Some providers sell ransomware for a one-time fee, while others offer subscription plans with tiered features. A common model is revenue sharing, where affiliates receive a percentage of the ransom payments collected from victims, with the provider taking a commission.
-
Affiliate Onboarding & Attack Execution: Affiliates sign up for the service and gain access to the ransomware toolkit, which may include automated attack tools, pre-built malware payloads, and dashboards for managing infections. They then distribute the ransomware through phishing campaigns, malicious ads, or exploiting software vulnerabilities, etc.
-
Ransom Collection & Profit Distribution: Once a system is infected, the ransomware encrypts critical data and demands payment—often in cryptocurrency—to restore access. The RaaS platform typically automates the payment process, directing victims to a portal for instructions. When a ransom is paid, the provider and affiliate split the proceeds based on their agreed terms.
-
Continuous Updates & Support: To ensure ongoing effectiveness, RaaS providers frequently update their malware to bypass security measures. Some even offer technical support to affiliates, assisting them in optimizing their attacks or troubleshooting issues with deployment.
RaaS and Challenges in Cybersecurity
The rise of RaaS presents several cybersecurity challenges, as it enables a larger and more diverse group of attackers to launch sophisticated ransomware campaigns. These challenges extend beyond traditional ransomware threats, impacting organizations, cybersecurity professionals, and law enforcement.
1. Increased Attack Frequency & Scale
RaaS significantly lowers the barrier to entry for cybercriminals, leading to a surge in ransomware incidents. Organizations now face not only highly skilled hackers but also opportunistic attackers leveraging pre-built ransomware kits. This widespread accessibility results in a higher volume of attacks targeting businesses, governments, and critical infrastructure.
2. Advanced Evasion Techniques
RaaS providers continuously refine their malware to bypass traditional security measures. Many ransomware variants employ polymorphic encryption, anti-analysis techniques, and fileless execution to evade endpoint detection and response (EDR) systems. These advancements make it more challenging for security teams to detect and mitigate threats in real-time.
3. Double and Triple Extortion Tactics
Beyond encrypting files, many RaaS operations use double extortion, where attackers exfiltrate sensitive data before encryption and threaten to leak it unless a ransom is paid. Some go further with triple extortion, adding additional pressure points, such as launching DDoS attacks or directly contacting customers and stakeholders to demand payment. These evolving tactics make incident response more complex.
4. Decentralized & Anonymous Operations
Unlike traditional cybercriminal groups, RaaS networks operate in a decentralized manner, making attribution and takedown efforts more difficult.
Providers and affiliates often use Tor networks, anonymous payment methods (e.g., Monero, Bitcoin), and bulletproof hosting services to obscure their identities. This anonymity complicates law enforcement investigations and international cooperation.
5. The Role of Access Brokers in RaaS Attacks
A third class of cybercriminals, known as access brokers, plays a crucial role in the RaaS ecosystem. These actors specialize in breaching corporate networks and selling access to ransomware affiliates. Rather than deploying ransomware themselves, access brokers exploit vulnerabilities, steal credentials, or use phishing attacks to infiltrate systems. They then sell this initial access on underground marketplaces, allowing ransomware operators to bypass perimeter defenses and execute attacks with minimal effort.
This segmentation of cybercrime operations makes it even harder to prevent ransomware incidents.
Ransomware as a Service (RaaS) Examples
Determining which groups are behind specific ransomware or identifying the operators responsible for an attack can be challenging. However, cybersecurity experts have recognized several major RaaS operators over the years, including:
- REvil (Sodinokibi): REvil, also known as Sodinokibi, was one of the most notorious RaaS groups, linked to large-scale attacks on corporations and critical infrastructure. It gained prominence by using double extortion tactics, where victims not only had their data encrypted but also faced threats of public data leaks if they refused to pay. The group was responsible for high-profile attacks, including the Kaseya supply chain attack, which affected hundreds of businesses worldwide.
- DarkSide: DarkSide operated as a RaaS platform known for its professional approach, offering affiliates technical support, press releases, and even ethical claims of avoiding attacks on hospitals and non-profits. However, this group was behind the Colonial Pipeline attack in 2021, which disrupted fuel distribution across the U.S. East Coast. The incident led to government intervention, highlighting the risks posed by RaaS-driven attacks on critical infrastructure.
- LockBit: LockBit is an active RaaS operation known for its self-spreading capabilities and automated encryption process, making it highly efficient. Unlike some RaaS groups that operate on a revenue-sharing model, LockBit offers a customizable affiliate program, allowing attackers to tweak ransomware payloads. It has targeted businesses worldwide, leveraging advanced evasion techniques to bypass security defenses.
- Conti: Conti functioned as a highly organized RaaS syndicate, operating with a corporate-like structure, including salaried developers and negotiators. The group gained attention for its rapid encryption speed and aggressive extortion tactics, often demanding multimillion-dollar ransoms. Conti was responsible for attacking healthcare institutions, government agencies, and private enterprises before its operations were disrupted in 2022.
- BlackCat (ALPHV): BlackCat, also known as ALPHV, is a more recent RaaS strain that stands out for being written in Rust, a programming language that enhances its obfuscation and evasion capabilities. It has introduced customizable ransom demands, offering affiliates more control over their operations. BlackCat continues to evolve, demonstrating how RaaS groups adapt to security countermeasures.
How to Protect Against RaaS Attacks
Cybercriminals no longer need advanced technical skills to carry out ransomware attacks. With RaaS, they can simply subscribe to pre-built ransomware tools, much like purchasing software online. This shift has expanded the threat landscape, making it easier for a wider range of attackers to target businesses. As a result, organizations must adopt stronger, more proactive security measures to keep pace with these evolving threats.
Strengthening Access Controls
Many RaaS attacks begin with stolen or leaked credentials. Cybercriminals often acquire login details through phishing campaigns, data breaches, or by purchasing them from access brokers—specialized hackers who infiltrate systems and sell access to the highest bidder.
To counter this, organizations must enforce multi-factor authentication (MFA), especially for remote access and privileged accounts. Even if an attacker obtains a password, MFA adds an extra verification step that significantly reduces unauthorized access risks. Additionally, adopting a zero-trust security model, where every request is verified regardless of origin, makes lateral movement within the network much harder for attackers.
Phishing and Endpoint Security
Since most RaaS infections start with phishing emails, enhancing email security is essential. AI-driven email filtering can detect and block malicious links, suspicious attachments, and spoofed domains before they reach employees’ inboxes. However, technology alone isn’t enough—regular phishing simulations and employee awareness training help reduce human error, making staff less likely to fall for social engineering attacks.
On the endpoint side, next-generation antivirus (NGAV) and endpoint detection and response (EDR) solutions can identify and block ransomware activity in real time. Some advanced solutions use behavior-based detection to recognize unusual patterns, such as unauthorized file encryption or mass file modifications, and shut down the attack before it spreads.
Network Segmentation: Containing the Damage
If ransomware gains entry, attackers often try to move across networks to maximize impact. Without proper safeguards, a single infected device can lead to widespread encryption of critical files.
Implementing network segmentation ensures that even if one part of the system is compromised, the malware cannot easily spread. Businesses should separate high-value systems—such as financial databases, customer records, and backup servers—from regular workstations. Firewalls and privileged access management (PAM) tools should restrict lateral movement, ensuring that only authorized users and applications can access sensitive areas.
Early Detection and Threat Intelligence
Ransomware doesn’t always execute immediately—attackers often spend time exploring networks, escalating privileges, and disabling security tools before launching the attack. Organizations can use threat intelligence platforms to monitor for indicators of compromise (IoCs), such as unauthorized admin logins, sudden changes in file extensions, or unusual spikes in network traffic.
Advanced user and entity behavior analytics (UEBA) solutions help detect anomalies that might indicate an attacker is preparing for ransomware deployment. For example, if an employee suddenly starts accessing large amounts of sensitive data outside of their usual working hours, it could signal a compromised account.
Incident Response and Recovery: Preparing for the Worst
Even with the best defenses, no system is 100% secure. A well-prepared incident response plan is critical to minimizing damage. Organizations should establish clear protocols for containing ransomware infections, communicating with stakeholders, and restoring systems from backups.
Speaking of backups, offline, immutable backups are a must. Many RaaS operators now use double extortion tactics, where they not only encrypt data but also steal it—threatening to release it unless the ransom is paid. Having multiple backup layers, including air-gapped storage that attackers cannot reach, ensures that organizations can recover without giving in to demands.
Security Awareness: The Human Firewall
Technology alone cannot stop RaaS—people remain both the weakest link and the strongest defense. Cybercriminals rely on deception, so continuous security awareness training is just as crucial as technical safeguards. Employees should be trained to recognize phishing attempts, report suspicious activity, and follow security best practices. Running ransomware response drills also helps organizations test their preparedness under real-world conditions.
Final Thoughts
RaaS is not a passing trend—it is an evolving threat model that adapts to new security measures and exploits emerging vulnerabilities. As law enforcement agencies crack down on major ransomware groups, cybercriminals shift tactics, developing stealthier malware and targeting industries with critical dependencies on digital infrastructure.
Looking ahead, we may see RaaS operations integrating automation and AI-driven attacks, allowing ransomware to spread faster and evade traditional detection methods. Additionally, ransomware targeting cloud environments and supply chains is expected to rise, as businesses increasingly rely on interconnected digital services.
Despite these challenges, organizations are not defenseless. Proactive security strategies, combined with international collaboration in tracking and dismantling cybercriminal networks, are making attacks riskier and less profitable for ransomware operators. Staying ahead requires continuous adaptation—investing in cybersecurity is no longer optional but a necessity for long-term resilience.
