Finance glossary

What is scareware?

Bristol James
3 Min

If you’ve ever been surfing the web and gotten a pop-up message that said something like, “Hurry, your device is under attack!” or “All of your data has been compromised,” you’ve been a victim of scareware. Scareware is a type of cybersecurity attack that uses scare tactics to make victims think their device is already compromised.

However, that’s the trick; scareware attacks direct people to click on a link or download software to “fix” the problem. But what most people don’t know, is that the real attack will come after following the instructions on your screen. You could be downloading ransomware, putting your files at risk, or even paying unnecessary sums to get out of the situation, and that’s exactly what the hacker wants. Don’t fall for it.

Scareware vs. Ransomware

Because scareware attacks are designed to direct users to click links or download something, they can often be used to open the door to a ransomware attack. The scareware itself usually doesn’t damage your machine or network, but if you comply with what it tells you to do, you’re putting everything at risk.

It’s important to note that not all scareware scams turn into ransomware attacks. Many times, these attacks are meant to make you panic by opening a bunch of new windows or making it hard to close out of the initial popup.  It’s important to stay very level-headed and calm if you’re facing scareware.

Scareware Tactics to Watch

There is more than one way to scare someone, so be on the lookout for:

Law Enforcement Scams

No one wants to mess with legal trouble, which is why law enforcement scams are especially effective in scareware attacks. The victim might get a pop-up saying that there is a warrant out for their arrest, and they must click the link to see the warrant. Then money is stolen, or information is gathered and sold – just as the attacker planned.

Tech Support

By pretending to be tech support, hackers get in touch with their victims by convincing them that they can help with an issue, and then they either sell fake solutions or instruct people to download “software” to solve the problem.

Virus Warnings

Probably the most-used approach, virus warnings send victims into a panic. In an effort to rid their machine of said virus, people will download malware that is disguised as security software.

Removing Scareware and Preventing Attacks 

Once exposed to a scareware attack, it can be very difficult for businesses to secure their networks and insulate their assets from the attack. If you suspect an active attack, work with your IT team to conduct proper recovery and backup protocol. Be sure to have an active cybersecurity insurance policy, too.

If you don’t want to wait for the worst-case scenario, there are many things a business can do to prevent scareware from taking its toll, such as:

  • Investing in Cybersecurity Protections: Things like firewalls and anti-virus software can make a world of difference in these attacks. With firewalls, you can get alerted about suspicious activity before it’s too late, giving you a chance to prevent the attack altogether.
  • Train Your Employees: Human error is one of the most common causes of cybersecurity attacks – we all make mistakes! By training your staff on what to watch out for and how to respond to certain types of attacks, they can avoid the sticky traps set by scammers.
  • Stay Updated: You need to ensure all software and hardware that your business relies on is as updated as possible, as the most recent versions of these platforms will be the most secure.
  • User Restrictions: Still worried about your well-meaning accountant downloading something they shouldn’t? Lean on user restrictions and download approval processes to prevent that from happening. 

Summary

  • Scareware is a type of cybersecurity attack that uses alarming messages to trick victims into believing their device is compromised, prompting them to click links or download malicious software.
  • While scareware itself may not harm a device, it can lead to more dangerous attacks like ransomware if victims follow the scareware’s instructions.
  • Attackers often use fake law enforcement alerts, tech support scams, or virus warnings to scare users into downloading malware or sharing sensitive information.
  • Businesses can protect themselves by investing in cybersecurity measures, training employees, keeping systems updated, and implementing user restrictions to prevent accidental downloads

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