Quick Take

Ransomware attacks are a growing threat to Non-Banking Financial Companies (NBFCs) — crippling operations, bleeding finances, and damaging customer trust. There have been several massive breaches in the financial space in the last few years, and if NBFCs don’t shape up to fight cybersecurity threats, they are the next target.

• More NBFCs are falling victim to ransomware attacks.
• No, paying the ransom isn’t a tactic — it’s a surrender.
• Zero-trust architecture? Not a buzzword. A necessity.
• Regularly backing up data in air-gapped storage will help you survive the inevitable (rather than if) ransomware attack.
• Realistic testing is needed for incident response plans — not a check-box process.

Introduction

Here’s the deal — attackers chase the money. And NBFCs? They’re holding a lot of it. That said, banks do invest billions in cybersecurity (at least most of the time), and NBFCs have tended to be softer targets in the past. Less regulation. Fewer IT resources. Smaller security teams. That makes them a magnet for ransomware gangs.

I’ve been in IT and security for almost 30 years, having started as a network admin in the ‘93s (yes, pre–PSTN and MUX morphing data/voice networking). But I’ve witnessed attacks develop from script kiddies running worms like Slammer to full-blown ransomware syndicates that resemble Fortune 500 companies.

And in the last 12 months? I have helped three NBFCs recover from ransomware attacks that almost destroyed them. What they all had in common is that they weren’t prepared.

The Lifecycle of a Ransomware Attack

Ransomware attacks targeting NBFCs do not happen in a flash (at least, not most of the time). There is a predictability to them, and if you study it, you can stop it before it’s too late.

Typical Ransomware Attack Flow

1. Initial Access:
   • Phishing email (still attack vector #1).
   • Taking advantage of unpatched software (yes, patch your firewall).
   • Compromised credentials (weak passwords, don’t get me started).
2. Lateral Movement:
   • Attackers don’t just stop at one infected laptop — they move across company networks.
   • Flawed permissions granted them access to core financial systems.
3. Data Exfiltration:
   • Ransomware today does more than encrypt; it steals.
   • Financial data of great value including customer banking information is held with NBFCs.
4. Encryption & Ransom Demand:
   • Ransomware that freezes networked core systems.
   • A note appears demanding millions worth of Bitcoin.

By the time a business detects the strike, it’s too late.

Case Studies: How NBFCs Have Been Decimated

Case 1: The Not-Really Backup

This NBFC was quite sure of having a strong backup policy. They relied on automated daily backups, stored data in the cloud…and still got wiped out. Why?

• Cloud backup credentials were compromised by the attackers.
• The ransomware didn’t act until weeks later — when all backups were encrypted as well.
• The data couldn’t be restored, and they were left at the mercy of the attackers.

Case 2: The Phishing Email No One Challenged

This one’s infuriating. An employee received an urgent email from the chief financial officer — except it wasn’t really from the chief financial officer. One click, and that was all it took.

• Malware was deployed.
• No MFA on internal systems — attackers roamed the network like ghosts.
• Customer records, loan histories, and financial reports were encrypted in less than 48 hours.

Losses? Millions. And irreparable customer trust damage.

Ransomware: The Financial Cost For NBFCs

Others think “we’ll just negotiate to move on.” Reality? You don’t get past it that fast.

Here’s what you forfeit in a ransomware attack:

• Direct ransom payment (if you give in — don’t do that).
• Fines & penalties from regulators because of breaches.
• Downtime & loss of business (weeks or months in some cases).
• Reputation damage — customers will never trust a compromised NBFC.
• Incident response & recovery costs – engaging experts to clean up the mess.

Some NBFCs never recover.

How to Protect Yourself Against Ransomware (Before It’s Too Late)

1. Zero-Trust Architecture

In the past year alone, I have assisted three banks in reengineering their security posture with Zero Trust. Why? Because implicit trust is unstable.

• Trust no device, user, or connection by default.
• Implement strict access controls (least privilege model).
• Segment your network — attackers shouldn’t be able to move around.

Oh, and don’t think a VPN is all you need. It isn’t.

2. Backups: Air-Gap Your Critical Data

Your cloud backup is not enough. Your local NAS isn’t enough. Ransomware is aware of where your backups reside.

• Store offline, air-gapped copies of critical financial information.
• Regularly test your restores — a backup that doesn’t restore isn’t a backup.
• Immutable storage stops attackers from changing the backup data.

3. The Fourth Pillar: Employee Training

It takes a single employee to click the wrong link.

• Phishing awareness training (regular).
• Conduct simulated attacks to see if people actually follow proper protocol.
• MFA across the board — no exceptions.

4. Email Systems and Endpoint Security

It can come in the form of laptops, desktops, and even mobile devices.

• Endpoint Detection & Response (EDR) solutions help stop ransomware before it encrypts your devices.
• Email filtering & sandboxing tools detect malicious attachments.
• Apply all patches — no more delaying updates.

5. Have An Incident Response Plan (And Use It)

Don’t wait until you find yourself locked out to start considering an incident response plan.

• Predefined roles — everyone must know what is expected of them.
• Reality testing — theory doesn’t help when you’re in a panic.
• Standalone recovery environments to ensure system recovery on the bare metal.

The Post’s Final Thoughts: You’re Either Prepared — or Next

Fresh back from DefCon, one thing was clear; the attackers are innovating faster than the defenders. The days are in past where NBFCs can afford to be simply reactive.

I’ve worked in cybersecurity long enough to witness companies making the same mistakes repeatedly. If you are tasked with protecting an NBFC, prioritize this now — or you will rue it later.

And if you believe that your existing security is rock solid? Test it.

If you’re not sure where to begin — let’s talk. Because the last time you want to add in security is after you’ve been hacked.