Ransomware is a type of malicious software (malware) used in cyberattacks to encrypt a victim's data, making it inaccessible until a ransom is paid, usually in cryptocurrency like Bitcoin. The attackers hold the decryption key, and the ransom amounts can vary, typically ranging from $300 to $600 for individuals, while larger organizations may face higher demands.

Organizations often consider paying ransoms because it can be more cost-effective than the lengthy process of data recovery. For example, the City of Baltimore faced an estimated recovery cost of $18 million after a ransomware attack, while the ransom demanded was only $76,000. However, public sentiment is against using taxpayer money for such payments, with 80% of respondents in a survey expressing concern about ransomware attacks.

Ransomware is evolving with trends such as the rise of Ransomware-as-a-Service (RaaS), which allows almost anyone to deploy ransomware for a fee. Additionally, attackers are shifting from targeting individuals to focusing on medium-to-large organizations that can afford higher ransoms. The average ransom demand has nearly doubled to over $12,000 in 2019, reflecting this shift towards more lucrative targets.