Fraud Alert: AI-Powered Ransomware—How To Stay Safe
In late-June, a Lucknow-based advertising company fell victim to a ransomware attack. Hackers broke into its servers, locked critical data with encryption and demanded money to unlock it. When recovery attempts failed, the company had to wipe its systems clean and restore from backups. In the process, most of the digital evidence was lost. Cyber police teams, according to media reports, suspect the attackers may have gained access through phishing or weaknesses in the network.
 
This, however, is not an isolated case. Ransomware attacks in India are hitting a wide range of sectors, from schools to police networks. These incidents highlight the growing need for cybersecurity awareness, strong preventive measures and well-prepared response plans.
 
Ransomware has long been among the most feared cyber threats. It can lock away your most valuable files, family photos, tax returns, bank details, even entire digital histories and demand money for their release. Once seen as a problem only for big companies, ransomware is now increasingly affecting ordinary people.
 
What is more worrying is the rise of ransomware powered by artificial intelligence (AI).
 
When Cybercriminals Use AI
 
A recent case highlighted in the Gen Threat Report by Avast researchers shows how cybercriminals are beginning to exploit AI. A group calling itself FunkSec admitted to using AI tools to speed up its illegal activities. They used generative AI to write code, craft phishing emails and even build custom internal tools.
 
Although their ransomware was not entirely created by AI, the technology made their operations quicker and potentially more dangerous. This is considered one of the first known cases where AI directly supported ransomware development, a troubling sign of what may lie ahead.
 
Fortunately, FunkSec slipped up. Avast’s experts discovered a flaw in the gang’s encryption system that allowed files to be restored without paying a ransom. In coordination with international law enforcement, Avast developed a free decryption tool that helped dozens of victims recover their data.
 
This tool adds to more than 40 free ransomware decryptors released by Avast and AVG over the past decade, a reminder that while criminals are becoming more advanced, defenders are keeping pace as well.
 
How Ransomware Reaches You
 
Ransomware doesn’t just appear on your device; it needs a way in. 
 
Here are the most common entry points:
  • Phishing emails: Fake messages designed to look like they’re from your bank, a delivery service, or even a friend. They often contain dangerous links or attachments.
     
  • Malicious attachments: Files disguised as invoices or job applications that prompt you to enable macros. Doing so activates hidden code that installs malware.
     
  • Compromised websites or ads (malvertising): Simply visiting hacked websites or clicking on suspicious adverts can trigger an infection, especially if your software isn’t updated.
     
  • Pirated downloads and software cracks: ‘Free’ versions of expensive software frequently come bundled with ransomware.
     
  • Infected USB drives: Plugging in a compromised USB stick can silently install malware on your system.
     
  • Access brokers (for businesses): Hackers sell stolen usernames, passwords, or other entry points into company networks, which ransomware groups later exploit.
 
Warning Signs of an Attack
 
Catching ransomware early can make all the difference. Be alert to these red flags:
  • Files won’t open or have strange new extensions such as .locked or .crypt.
  • Sluggish performance, especially when opening files or applications.
  • Unfamiliar programs launching at startup, which you didn’t install.
  • Unexpected pop-ups asking you to enable macros or grant special permissions.
  • A ransom note appearing on your screen, often in files named README.txt or HOW_TO_DECRYPT.html.
 
How You Can Strengthen Resilience against Ransomware 
 
1. Back up your digital life (smartly)
  • Keep two backups: one on a secure cloud service and another offline (on an external hard drive or USB that isn’t always connected).
  • Test your backups regularly—many victims only discover too late that theirs were outdated or corrupted.
 
2. Update everything, regularly
  • Turn on automatic updates for Windows, macOS, Android, iOS, browsers and apps.
  • Ransomware gangs often exploit unpatched flaws (known as 'zero-days'), so staying updated is vital.
 
3. Be ruthless about emails
  • Treat all unexpected emails—especially those with attachments or urgent requests—with caution.
  • Double-check sender addresses, as cybercriminals often mimic banks, delivery firms, or government agencies.
  • Never enable macros in Office documents from unknown sources.
 
4. Secure your devices
  • Install a trusted antivirus or anti-ransomware solution with real-time protection.
  • Keep firewalls enabled—both on your device and at the router level.
  • Use multi-factor authentication (MFA) wherever possible, especially for email, banking and cloud services.
 
5. Be cautious with downloads 
  • Avoid pirated software, cracked games, or shady download sites—these are common ransomware carriers.
  • Download apps only from official stores such as Google Play, Apple App Store, or Microsoft Store.
 
6. Guard against malvertising and infected sites
  • Use a browser with built-in protection against unsafe websites.
  • Consider using an ad blocker to reduce exposure to malicious ads.
 
7. Think before plugging in
  • Do not use unknown USB sticks. Attackers often leave infected drives in public places as part of 'USB drop' attacks.
 
8. Spot the signs early
  • If files suddenly have strange extensions (like .crypt or .locked) or your computer slows down drastically, disconnect from Wi-Fi immediately.
  • This can sometimes stop ransomware from spreading to cloud backups or other devices on your network.
 
9. Know what not to do
  • Never pay the ransom—payment does not guarantee your data will be restored and only fuels further attacks.
  • Instead, check if a free decryption tool is available. Companies like Avast, Kaspersky, and the No More Ransom project maintain public databases.
 
10. Stay informed 
  • Follow updates from trusted cybersecurity sources such as CERT-In, Cyber Dost and the No More Ransom project.
  • Awareness is the cheapest and most effective defence in the cyberworld.
 
Having said that, we need to understand how AI is reshaping the cybercrime landscape. It makes attacks quicker to build and easier to launch, even for criminals with little technical knowledge. At the same time, cybersecurity experts and law enforcement are also harnessing AI to strengthen defences.
 
Ransomware powered by AI may be faster and trickier, but for everyday users, the basics still work: good digital hygiene, regular backups, cautious clicking, and strong security software remain the best shields.
 
Bottom line: Ransomware may be getting smarter, but so can we. With awareness, caution, and the right tools, you can protect your digital life without ever paying a ransom.
 
Stay Alert, Stay Safe!
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