Cyber extortion: a growing threat in the digital age
The rapid development of technology has changed how we work, communicate, and live. But along with the benefits, new threats have emerged. One of the most serious is cyber extortion – a malicious tactic used to pressure victims into paying money or handing over valuable information.
Cybercriminals exploit weaknesses in digital systems through various forms of cyber attack, such as DDoS attacks, and threaten to leak sensitive data or cause serious harm if their demands are not met. This type of threat targets individuals, businesses, and even governments, making it a widespread issue in today’s interconnected world.
What is cyber extortion?
Cyber extortion is a form of cybercrime where attackers use threats and intimidation to force victims into paying a ransom. Unlike traditional extortion, which often relies on physical threats, cyber extortion uses the anonymity and global reach of the internet.
Criminals gain unauthorized access to data, networks, or systems and then demand money in exchange for not leaking or destroying the information. The goal is simple: to make a profit by holding data or systems hostage. When cyber extortion occurs, it is crucial to report the incident to enhance safety and prevent further victimization.
Definition and examples
Cyber extortion is a type of cybercrime where threat actors exploit security vulnerabilities to gain unauthorized access to valuable assets, including confidential data, intellectual property, financial currency, and critical infrastructure systems. Cyber extortion involves demanding a ransom from victims to prevent the release, alteration, or destruction of their assets. Cyber extortion typically appears in two main forms: ransomware and Distributed Denial of Service (DDoS) attacks. In a ransomware attack, malicious software is used to lock or encrypt a victim’s files, with access only granted if a ransom is paid. A DDoS attack, on the other hand, overwhelms a target’s network, system, or website with excessive traffic, making it slow or completely unavailable.
Explore how DDoS attacks are used to disrupt operations and learn how ransomware works as a tool for extortion.
How cyber extortion works
The way cyber extortion is carried out depends largely on the methods and strategies used by the attackers, which can differ significantly depending on their tools and objectives. The process typically involves several general steps, although each case is unique in its specifics. Understanding how cyber extortion works provides a basic understanding of how schemes are carried out. Cyber extortionists use various methods to gain unauthorized access to a victim’s system and/or network, including phishing emails, malware, and other types of cyber attacks. Once they gain access, they steal data, lock systems, or interrupt operations, and threaten to release the stolen data publicly unless a ransom is paid.
Common types of cyber extortion
Understanding the most common types of cyber extortion attack can help you recognize and prevent attacks.
Ransomware attacks
Ransomware is the most well-known type of cyber extortion. Hackers gain access to a victim’s system, encrypt important files, and demand payment to unlock them. Well-known attacks like WannaCry and NotPetya show just how damaging ransomware can be.
Data breach extortion is another form of cyber extortion where attackers steal sensitive information and demand ransom to prevent its release.
Doxxing by cyber extortionists
Doxxing involves the threat of publicly releasing private or sensitive information unless the victim complies with specific demands. This could include paying money, completing a task, or making a public statement.
DDoS attacks (distributed denial of service)
During a DDoS attack, attackers overload a server, website, or network with an excessive amount of traffic, disrupting normal operations and potentially making the service completely unavailable to legitimate users. They then demand payment to stop the attack and restore normal access.
Data breaches
Attackers may initiate a data breach by breaking into a company’s systems and stealing sensitive information. If the victim refuses to pay a ransom, the criminals threaten to leak the data, which could lead to legal action, regulatory penalties, and damaged reputation.
IoT extortion
As more smart devices are connected to the internet, attackers are targeting them. They may take control of smart home or office devices and demand payment to return access or prevent further misuse.
Real-World examples of cyber extortion
Cyber extortion has taken many shapes over the years, with numerous real-life incidents highlighting its impact. Some of the most well-known examples include:
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The WannaCry ransomware attack in 2017, which infected over 300,000 devices across 150 countries, causing widespread disruptions and financial losses.
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The Karakurt group, which has been active since 2021, targeting a wide range of industries, including healthcare, the industrial sector, entertainment, and technology.
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The city of Baltimore, which was hit by a ransomware attack in 2019, causing widespread disruptions and financial losses.
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The Colonial Pipeline, which was hit by a ransomware attack in 2021, causing widespread disruptions and financial losses.
Notable cyber extortion attacks
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The LockBit ransomware attacks on several well-known companies, including a dental insurance provider and a water utility in Portugal.
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The Garmin ransomware attack in 2020, which caused widespread disruptions and financial losses.
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The Travelex ransomware attack in 2019, which caused widespread disruptions and financial losses.
Effects of cyber extortion
Cyber extortion inflicts significant financial and reputational damage on its victims. The hidden costs of these incidents are often much higher than the ransoms paid. Cyber extortion can cause significant financial losses, damage to reputation, and loss of sensitive information. It can also disrupt business operations and cause reputational damage. Organizations and individuals must be vigilant in guarding against cyber extortion attacks and take steps to protect themselves from these threats.
How to protect against cyber extortion
There are several steps you can take to reduce the risk of cyber extortion and strengthen your overall cybersecurity posture. Implementing robust security measures is crucial for protecting organizations from data breaches and cyber extortion. These measures help safeguard sensitive data and prevent unauthorized access, as cybercriminals often exploit security vulnerabilities to launch attacks.
Strengthen cybersecurity systems
Use firewalls, antivirus software, and intrusion detection systems. Regularly update all software to patch known vulnerabilities and reduce the risk of unauthorized access. Understanding how cyber extortion work involves exploiting vulnerabilities in systems and devices to gain unauthorized access can help in strengthening these cybersecurity measures.
Train employees
Educate staff about phishing, suspicious links, and other common cyber threats. Employees are often the first line of defense, so awareness is key.
Backup data regularly
Keep secure backups of important data in offline or cloud storage. In the case of a ransomware attack, backups can help you recover without paying a ransom.
Create an incident response plan
Have a clear plan that outlines what to do in the event of a cyber extortion attempt. This should include steps for isolating affected systems, contacting law enforcement, and informing stakeholders.
Use multi-factor authentication (MFA)
Enable MFA on all important accounts and systems. It strengthens your security by requiring more than just a password, which means that even if login credentials are compromised, unauthorized access remains difficult.
Monitor and fix vulnerabilities
Regularly scan for security weaknesses and fix them promptly. Keeping systems up to date helps close gaps that cybercriminals could exploit.
Stay informed
Keep up with the latest cybersecurity trends and threats. Understanding how cybercriminals operate helps you stay one step ahead.
Consider cyber insurance
Cyber insurance can’t prevent attacks, but it can help reduce the financial impact of a cyber extortion incident. It may cover recovery costs, legal fees, and other expenses.
Final thoughts
Cyber extortion continues to pose a serious risk to people and organizations across the globe. Cyber criminals are the perpetrators behind cyber extortion, using digital means to blackmail individuals or organizations. As digital threats evolve, so must your defenses.
Taking a proactive approach to cybersecurity, educating your team, and staying updated on new risks can greatly reduce your chances of falling victim. The best protection combines technology, knowledge, and a strong security culture.
This post has been updated on 28-03-2025 by Sarah Krarup.

Sarah Krarup
Sarah studies innovation and entrepreneurship with a deep interest in IT and how cybersecurity impacts businesses and individuals. She has extensive experience in copywriting and is dedicated to making cybersecurity information accessible and engaging for everyone.
View all posts by Sarah Krarup