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Ransomware Defence UK: Stopping Lateral Movement with IAM

Ransomware Defence UK: Stopping Lateral Movement with IAM

Ransomware is malware designed to hold data, systems, or entire networks hostage. The concept is mechanical and brutal: attackers encrypt your files, block user access, and demand payment for a decryption key.

For the UK IT department, the threat is no longer just about encryption. It is about double extortion. Criminals steal sensitive data before locking the system, threatening to release it publicly if the ransom is not paid. This triggers mandatory reporting to the Information Commissioner’s Office (ICO), leading to potential fines alongside operational paralysis.

The National Cyber Security Centre (NCSC) consistently ranks ransomware as the primary threat to UK organisations. The vector is rarely a complex code exploit; it is usually a compromised user identity.

The Two Vectors of Attack

Understanding the enemy requires categorising the payload. Broadly, there are two variants:

  • Locker Ransomware: Blocks the operating system interface. The underlying data is often untouched, but the device is unusable.

  • Crypto Ransomware: The more common and dangerous variant. It locates files locally and across mapped network drives, encrypting them with military-grade algorithms.

Modern attacks are now "Human-Operated Ransomware." This means the attacker gains a foothold, manually reconnoitres the network, escalates privileges, and manually deploys the payload for maximum damage.

The Cost of Chaos

The damage extends beyond the ransom fee. For a UK business, the fallout is tri-fold:

  1. Operational Downtime: Most organisations cannot survive two weeks without access to data.

  2. Regulatory Fines: Under the ICO’s guidance on ransomware and data protection, even a temporary loss of access to personal data constitutes a personal data breach (an "availability breach"). If the investigation reveals that you allowed excessive access rights (e.g. a junior clerk having admin access to HR folders), you may be found negligent under GDPR Article 32.

  3. Reputational Erosion: Clients lose trust immediately.

How Ransomware Spreads

Ransomware relies on lateral movement. Once a hacker compromises a single endpoint or set of credentials, they look for open doors to spread to servers and backup repositories.

In many organisations, this spread is facilitated by poor Identity and Access Management (IAM). If a user clicks a malicious link, the ransomware inherits that user’s permissions. If that user has "accumulated access" from years of changing roles without rights being revoked, the ransomware spreads everywhere that user had access.

Warning Signs of an Attack

  • Performance Spikes: High CPU usage as encryption processes run in the background.

  • Abnormal Network Traffic: Large data transfers to external IP addresses (exfiltration).

  • Privilege Escalation: Alerts regarding standard users attempting to access domain controller functions.

IAM as a Blast Radius Container

Backups are your recovery method; Identity Management is your containment method. To stop ransomware from paralysing the entire network, you must restrict what any single compromised account can touch. This is the Principle of Least Privilege, enforced via automation.

1. Stop Accumulation of Rights

Manual access management leads to "permission creep." An employee moves from Sales to Finance but keeps their Sales folder access "just in case." If their account is breached, the attacker now has access to both departments.

The HelloID Fix: An automated IAM solution links access directly to the HR source. When a role changes in the HR system, HelloID automatically revokes the old permissions and grants the new ones. The attack surface is minimised instantly.

2. The Kill Switch

Dormant accounts are a favourite target for attackers because nobody notices when they are used. The NCSC guidance on mitigating malware specifically advises organisations to disable unnecessary accounts to prevent this exploitation.

The HelloID Fix: When a contract is terminated in HR, the IAM system disables the Active Directory account and revokes all cloud sessions immediately. There are no orphan accounts left for attackers to exploit.

3. Enforcing Zero Trust

You cannot rely on the perimeter firewall. You must assume a breach will happen and design the network to limit the damage. By automating Role-Based Access Control (RBAC), you ensure users only have access to exactly what they need to do their job. If they get infected, the ransomware is trapped in a small, non-critical segment of the network.

A Note on Backups: The 3-2-1 Rule

While IAM limits the spread, backups ensure survival. You should adhere to the NCSC's advice on offline backups, specifically the "3-2-1 rule":

  • 3 copies of your data.

  • 2 different storage media (e.g. disk and cloud).

  • 1 copy offline (air-gapped) where ransomware cannot reach it.

Comparison: Manual Management vs. Automated Governance

Feature

Manual Process (High Risk)

Automated Governance (HelloID)

Leaver Process

IT waits for an email from HR. Accounts remain active for days or weeks after departure.

Instant: Account disabled automatically on the contract end date. No dormant accounts.

Permission Structure

"Copy-Paste" user rights. Users accumulate access over years (Permission Creep).

Dynamic: Access is calculated daily based on current role. Old rights are stripped automatically.

Audit Trail

Spreadsheets and ticket history. Difficult to prove who had access during a breach.

Centralised: A complete, unalterable log of who has access to what, ready for the ICO.

Lateral Movement

High. One compromised user exposes vast areas of the network.

Contained: Strict RBAC limits the ransomware to a specific, low-privilege scope.

Ransomware and IAM

More tips to prevent ransomware attacks?

You cannot prevent every phishing email, but you can prevent the total collapse of your network.

Take a hard look at your current user provisioning and offboarding workflows. If you are still relying on service desk tickets and manual updates to manage access, you are not just inefficient, you are leaving doors open for ransomware to spread.

Security is not just about keeping intruders out; it is about ensuring they have nowhere to go if they get in. Would you like to discuss your specific Active Directory challenges with a specialist?

For attackers the easiest way to install malware is through ordinary user and administrator accounts. Modern IAM environments ensure that people receive access only to those applications and data that are strictly necessary. You can also make access control more secure with Multi-Factor Authentication, for example. This prevents malicious actors from gaining access to your network.

Some cybercriminals specialise in using their ransomware software to gain access to companies. They then sell that access to 'customers' who use the illegal access to launch a ransomware operation.

It may sound simpler to pay rather than restore your IT environment. Unfortunately, paying often only leads to additional ransom demands. The so-called decryptor software to make the data accessible again often does not work either. Paying is therefore often not a solution. Ensure that you have a solid disaster plan and an excellent backup strategy.