The Anatomy of a Cyber-attack

Cyber-attacks are increasing at an alarming rate, and it is important to know how they work. Cyber-attacks can be actions committed by malicious actors meant to damage, disrupt, or gain unauthorized access to steal sensitive data.  Cybercriminals typically target individuals, businesses, government agencies, or anything with access to private information. The most common types of cyber-attacks are: 

• Malware 

• Phishing 

• Man-in-the Middle Attacks 

• Spoofing 

• Code Injection 

• Insider Threats 

• Social Engineering 

These attacks can leave any business down for the count for long periods, causing large financial troubles. In order to help prevent these attacks from happening, individuals and businesses must understand the steps of how a cyber-attack happens.   

1. Reconnaissance 

In the reconnaissance phase, hackers begin by researching and selecting their target. They can target any organization, whether large corporations, government entities, or small and medium–sized businesses (SMBs). However, SMBs with fewer cybersecurity measures are more frequently targeted.  

Reconnaissance can be divided into two main types: Active and Passive: 

Active reconnaissance involves directly interacting with the victim’s system to gather information through techniques like network scanning, probing for open ports, and testing for vulnerabilities. This approach can be detected and prevented with the right security measures, but can also provide details up-to-date data on system configurations, software versions, and potential entry points. 

Passive reconnaissance does not allow for direct interaction and instead relies on gathering public information about employees, systems, and networks using social media, websites, and previous data leaks. Tools like Google Dorking, WHOIS lookups, Shodan, and social engineering techniques are commonly used to conduct passive reconnaissance without alerting the target. 

Many attackers are able to identify weaknesses in their target’s security, such as outdated software, weak passwords, phishing opportunities, and more. That is why it is essential to ensure that a dedicated cybersecurity team monitors and evaluates a company’s protection details. Organizations of all sizes must prioritize continuous monitoring for suspicious activity, security public-facing information, and conducting regular cybersecurity assessments.  

 2. Initial Access and Weaponization 

After a hacker finds a vulnerability or gathers enough information during reconnaissance, the break-in or initial access process is set to begin. By using unauthorized access, hackers can view sensitive data and potentially steal company data.  This access could be obtained through various methods, including phishing attacks, exploiting software vulnerabilities, or using stolen or purchased credentials from the dark web. The initial access marks the start of direct interaction with the target’s network, allowing the attackers to execute the next phases of the attack.  

In the weaponization phase, attackers can easily weaponize by installing malware or continue taking advantage of vulnerabilities that were discovered during the reconnaissance phase. Weaponization often involves deploying malware such as viruses, trojans, or ransomware to further disrupt operations or create persistent access to the network. In some cases, attackers may install backdoors or establish command-and-control connections, allowing attackers to remotely control the infected systems.  

During this stage, employees may notice unusual behavior, such as slow systems, unresponsive applications, or unexpected lockouts to certain accounts. Training employees to recognize these signs is critical, and any detection should be reported to your IT or cybersecurity team. The earlier an attack is caught, the easier it is to begin to solve the issue.  

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3. Access Expansion and Delivery 

If an attack goes unnoticed, hackers can continue to gain access to other systems and company data. Once initial access is achieved, attackers tend to increase their access levels, the aim usually being to gain access to financial data and private customer information. They will try their best to steal important data such as banking credentials or any other information to hold hostage without triggering security alerts.  

To achieve this, attackers may employ various techniques to elevate their access levels, including exploiting additional vulnerabilities, leveraging stolen or purchased credentials, or using social engineering tactics. In some cases, attackers may deploy ransomware to encrypt critical data, holding it hostage until a ransom is paid, all while working to avoid triggering security alerts.  

Additional harmful tactics, such as phishing scams, may be sent out to employees in an attempt to gain more access and infect them further. These phishing attempts may appear legitimate, using familiar branding or urgent messages to deceive recipients into clicking malicious links or downloading infected attachments. The more successful these efforts are, the more extensive the attackers’ control over the network becomes. 

To mitigate the risks associated with access expansion, organizations must implement strong security measures, including multi-factor authentication (MFA), regular user activity monitoring, and employee training on recognizing phishing attempts. By establishing a robust security culture and responding promptly to suspicious activities, companies can reduce the likelihood of attackers gaining further access to critical systems.  

4. Exploitation of Stolen Data 

After attempting to gain the most access possible, attackers begin to exploit the data they have access to for financial gain or malicious purposes. They may begin to attempt access into specific financial accounts, transfer funds, or hold sensitive information hostage through ransomware. If the attacker uses ransomware, they may encrypt valuable data and demand a ransom for its release. This will not only cause a business to face financial harm, but also harm their reputation, and disrupt daily operations.  

In some cases, attackers may use the stolen data for identity theft, selling the information on the dark web, or holding it hostage, threatening to release or publish sensitive materials unless their demands are met. This not only jeopardizes the immediate financial stability of the business but also exposes it to long-term consequences, including loss of customer trust and potential legal fines.  

When a breach is detected during this phase, businesses often find themselves in a crisis situation. During a cyber-attack, businesses may have to completely halt operations and shut down their systems to prevent further exploitation. This can lead to substantial downtime, causing significant disruption to business activities.

Cybersecurity teams or companies must investigate the scope of the attack, determine what data was stolen, and identify how the attackers gained access in the first place.  This recovery process is often time-consuming and frustrating, both for IT teams and for employees, who may be unable to access critical systems or data. 

For customers, the fallout from such breaches can be severe, leading to a loss of confidence in the business and its ability to protect sensitive information. To minimize the impact of exploitation, organizations must have robust incident response and data protection strategies in place, including regular backups, encryption, and proactive monitoring for suspicious activity.  

5. Covering Tracks: Hiding the Evidence 

A cyber-attack has the potential to happen completely undetected.  If this is the case, hackers have the ability to erase logs and delete any corrupted files. They may also restore systems to their pre-attack states to delay any detection of their hacking. In order to remain undetected, hackers typically employ countermeasures such as encrypting or disabling security threat alerts that would notify any IT or cybersecurity teams. 

This phase of the attack can be especially harmful when it comes to repairing any vulnerabilities or getting sensitive information back. If a business does not know they were hacked, it does not know what needs to be patched, leaving it open for another cyber-attack in the future. This can be avoided by conducting regular auditing and providing updates of your company’s security system. 

6. Beyond Stolen Credentials: Other Financial Losses 

We have briefly touched on the financial threats of a cyber-attack, but many are overlooked. It is important to be aware of additional aspects of a cyber-attack, such as: 

• Ransomware: Hackers lock critical systems and demand ransom, causing both financial loss and operational downtime.   

• Operational Downtime: Financial damage from interrupted business operations, recovery costs, and lost customers.   

• Indirect Financial Loss: The costs of legal fees, damaged reputation, and loss of future business after a cyber-attack.  

• Supply Chain Disruptions: If a hacker gains enough access, other businesses can be infected through yours.  

• Fines and Penalties: After a cyber-attack, your business can face fines for not complying with cybersecurity regulations and protections. 

These are just a few additional items to consider when thinking about how much a business could lose because of a cyber-attack. A cyber-attack even has the abiity to shut down a business permanently. Companies like Code Spaced and Travelex were forced to shut down due to the high costs of post cyber-attack recovery. While many business owners do not know of this service, there is cyber insurance can help with high recovery costs and prevent permanent closure. Cyber insurance can cover expenses related to the attack, such as ransom payments, legal fees, and operational downtime, potentially preventing the permanent closure of the business. 

Castile Security Can Help Protect Your Business 

It is essential to strengthen any business’s cybersecurity protections. Protection from cyber-attacks goes far beyond basic anti-virus software. With the increase in cyber-attacks, it is good to have a cybersecurity team that monitors and protects your system. Contact Castile Security today to see how we can help protect you and your business from hackers!