Office 365 Ransomware: Cybersecurity Guide for Business 2021

Office 365 Ransomware: Complete Cybersecurity Guide for SecOps 2021

Global pandemics and the transition to WFH operations made businesses more vulnerable to cyber threats, especially ransomware. In 2021, criminals initiate an attack on a business, consumer, or device every 11 seconds. Moreover, 73% of them are successful. Cloud office suites are one of the most popular targets. And, despite the common belief, Microsoft doesn’t provide reliable protection from Office 365 ransomware.

Meanwhile, the outcomes of the attack can be devastating. Businesses will have to pay a ransom and non-compliance penalties. They might also face legal suits from clients. And most importantly, the company will have to deal with the downtime averaging 16.2 days.

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In this article, you’ll learn how to recover from the attack and build an efficient anti-ransomware defense for Office 365 environment.

Office 365 Ransomware in a Nutshell

Microsoft ransomware encrypts data stored in Office 365 services like OneDrive, Outlook, Calendar, Sharepoint, and People. Infecting just one user, it spreads across all accounts in your tenant and hinders all your business operations. Learn how to defend your OneDrive from ransomware.

Ransomware is easy to code but hard to decrypt unless you have a key. Unfortunately, ransomware is constantly evolving and new types emerge on a regular basis. That’s why an infected business has a hard choice to make. They either pay the ransom and get the key immediately from criminals or wait weeks or months to crack the malware.

Ransomware can’t infect your Office 365 environment unless one of your users gives it permission to access and change your data. There are three main ways to get access permission for the malware:

1. Infected application.

There are thousands of apps in Microsoft AppSource. They request access permissions when users launch an app for the first time. Cybercriminals either create apps or look for vulnerabilities in the existing ones and use them.

2. Phishing email.

The first method can be too hard for cybercriminals. That’s why many of them prefer phishing emails. They trick people into granting access to ransomware in a window that resembles the Microsoft website. See how it’s done in the video below:

3. Man-in-the-middle attack.

This attack works similarly to the previous one, only the user knows exactly the consequences of their actions.

Office 365 Ransomware

Office 365 Ransomware Recovery

When it comes to ransomware, recovery is the number one underestimated issue for business. And to demonstrate that, we’d like to share with you the experience of our sales team.

SpinOne has an anti-ransomware solution for companies operating in Office 365. On demo calls with potential clients, we usually ask three questions.

1. What’s your incident response plan for a ransomware attack?

Our team found that 1 in 6 companies relies on legacy antivirus solutions. We can definitely say, there’s a problem here. Most legacy antivirus solutions use historical data to detect and stop ransomware as well as to decrypt files. However, they are powerless against a new type of malware.

2. Do you know how to recover files from a ransomware attack?

One in 4 companies uses backup for that purpose. We can say it is a great way to recover encrypted data. Furthermore, our own solution uses online backup for ransomware recovery. However, before doing that, your Administrator needs to first revoke malware’s access to your Office 365. And this is where you lose time and your business loses money.

3. How long does it take to recover from ransomware for your business?

Most teams can’t answer this question, so we equip them with the known statistics. The ransomware recovery takes 16.2 days on average. And the average cost of downtime can range from $8K per hour for SMBs to $11K per minute for enterprises. The resulting losses can reach millions of dollars.

Office 365 Protection against Ransomware

There are multiple solutions that protect against ransomware. We suggest using all of them to minimize the risk:

  1. Native Microsoft tools
  2. Educating your employees
  3. Third-party solutions like backups and anti-ransomware tools

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Native ransomware protection in Office 365

To defend your data from ransomware, Microsoft provides the next tools:

1. Exchange Online Protection

Since many attacks use email as an entry point, Microsoft has created multiple filters to detect phishing emails, suspicious links, or applications. This is a good sieve, but not a perfect one.

One of Spin’s products is a behavior-based ransomware protection tool for Office 365. To train SpinOne’s AI, our development team runs ransomware attacks on a test Microsoft account every month. They send malicious links via email that hit the inbox just well.

2. Cloud App Security

It is a paid service that can help you monitor and control shadow IT. Cloud app security looks for risky apps that have access to your Office Suite and enable your Admins to revoke it. It helps you minimize the risk of a ransomware attack via applications.

3. Data Loss Policies 

You can protect some of your files from editing and deleting. All you need is a proper DLP. Unfortunately, for obvious reasons, you can’t apply DLPs to all your files. Which makes this method only partially efficient.

Final thoughts on Microsoft native tools. You should remember that using only them isn’t enough. Microsoft sticks to the shared responsibility model:

Microsoft shared responsibility model

As you can see, information and data will remain your responsibilities as well as accounts and identities. This means that if your employees grant access to ransomware, it will be the responsibility of your business, not Microsoft. That’s why we suggest that you also purchase third-party ransomware protection and provide cybersecurity training to your employees.

Cybersecurity awareness training

Platforms like KnowBe4 provide both education and training. For example, after an employee completed a course on ransomware, they would occasionally send a fake phishing email. Once an employee falls for the scam, the platform sends a notification. In this way, it not only equips your team with knowledge but also keeps them alert.

Remember that training doesn’t give you 100% defense against ransomware. Phishing emails look very realistic. Meanwhile, an employee who is stressed due to some family issue or working problems might simply forget to make the regular check and click on a link by mistake.

Third-party tools

As mentioned above companies use two types of tools: backups and ransomware protection.  Let’s take a closer look at each of them.

1. Backup

Office 365 backup is essential for your business for multiple reasons like compliance or data loss prevention. They create a copy of your data stored in the cloud and keep it intact. Can ransomware infect backups? No. Can backups be used as protection against ransomware? No. They don’t stop ransomware or revoke access to your cloud office. Backups only recover your lost data.

2. Cloud ransomware protection

Most third-party anti-ransomware solutions for Office 365 detect ransomware in the cloud basing on the data they collected from previous attacks. As we mentioned above, they are useless when the new ransomware strikes.

Unlike these tools, SpinSecurity analyzes data behavior in your cloud environment. It detects abnormalities that are characteristic of ransomware. Then it determines the source of attack and revokes its access to your Office 365. Once the attack stops, SpinSecurity uses its inbuild backup to restore encrypted files.

Learn how SpinSecurity defends Office 365 from ransomware attacks.

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