Page 76 - Cyber Warnings

Ransomware and the Internet of Things

IoT ransomware is more dangerous than traditional ransomware

Ransomware has become one of the most serious cyber threats these years. Today, all of us -
from home users to corporations and government organizations - are trying to protect ourselves
from encryption viruses. However, we still ignore the beginning of the next wave of ransomware
attacks aimed at encrypting IoT devices. It can be much more dangerous given the omnipresent
and extremely diverse nature of the Internet of Things.

IoT ransomware has already been discussed online and at security conferences, but it was not
considered a serious threat at the time. There are some differences that make IoT ransomware
more dangerous than the already widespread extortion viruses for desktops and smartphones.

IoT ransomware does not encrypt your data

The well-known and most active crypto viruses like Locky and Cerber lock down important files
on infected machines. Their main strength is irreversibility - the victims are forced to either pay
for obtaining the decryption key or say goodbye to their files in case there are no backups. It is
usually assumed that files and important data have a value expressed in money, and this fact
attracts cyber extortionists. IoT devices often do not have any data at all. Some may think that
ransomware authors are not interested in attacking IoT devices. It’s not actually so.

Instead of only locking some files, IoT viruses may lock and get complete control over many
devices and even networks. IoT malware may stop vehicles, disconnect the electricity, even
stop production lines. Such programs can do much more harm, and therefore hackers may
demand much larger ransom amounts. This increases the attractiveness of the new
underground market. One could argue that IoT hacking can be stopped with a simple reboot.
However, the incentive to pay extortionists does not result from irreversibility but rather from the
volume and character of potential losses which may occur during the time you lose control over
the system.

While the Internet of Things expands the possibilities of life-supporting devices like pacemakers
or industrial systems such as pumping stations, the financial benefits of blocking IoT
infrastructure and the damage from belated response will grow exponentially. Organizations that
use the Internet of Things in industrial control systems are the most vulnerable. These include
power plants, big automated production lines, etc.

Consumer IoT devices

Attacks on consumer IoT devices, including smart homes and connected cars, are already real.
Researchers have shown how they can gain control of a connected thermostat through the use

76 Cyber Warnings E-Magazine – April 2017 Edition
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