In today’s digital world, financial institutions face rising cyber threats, with ransomware among the most damaging. These attacks encrypt critical systems, halt operations, and demand ransom, jeopardizing trust and business continuity. Moreover, ransomware can cause data breaches, regulatory fines, and shutdowns that disrupt essential business functions. For example, the December 2023 Ongoing Operations attack exposed vulnerabilities in credit unions and highlighted recovery solution needs. This article covers best practices for ransomware recovery, including early detection, disaster recovery, and resilience strategies.

Without a plan, restoring systems and protecting data becomes costly and complex. Therefore, FIs must adopt strategies combining strong security, reliable backups, and an incident response plan. By doing so, institutions can reduce risk, recover faster, and stay compliant during ransomware events. Since threats evolve, proactive ransomware recovery is now essential—not optional—for financial institutions. Next, we’ll explore how FIs can strengthen defenses and recover by building a resilient cybersecurity framework.

Understanding the Impact of a Ransomware Attack and the Importance of Business Continuity

What is a Ransomware Attack?

A ransomware attack is a type of malicious software attack in which cybercriminals encrypt an organization’s critical data and demand payment in exchange for decryption.

These attacks typically infiltrate financial institutions through common initial access vectors such as phishing attacks, remote desktop protocol (RDP) vulnerabilities, or unpatched security weaknesses.

Once inside, attackers spread ransomware across critical systems, disrupting business operations and rendering affected devices unusable.

A ransomware attack on a financial institution can disrupt critical services, compromise sensitive customer data, and lead to regulatory penalties for violating data protection laws.

Prolonged downtime and data breaches can also damage customer trust and business reputation, resulting in long-term financial consequences.

Without a comprehensive ransomware recovery strategy, financial institutions may struggle to recover from a ransomware attack, resulting in significant financial losses and an inability to resume normal operations.

The Ongoing Operations Ransomware Attack

A notable ransomware attack in December 2023 targeted Ongoing Operations, a cloud service provider that supports credit unions. This attack led to a widespread outage, affecting numerous financial institutions by disrupting critical services, including:

• Online banking access
• Internal communications and network availability
• Transactional processing and data access

The incident emphasized the vulnerabilities financial institutions face when relying on third-party cloud services and the importance of disaster recovery solutions that ensure business continuity.

Institutions that had encrypted backups, tested recovery procedures, and well-defined incident response plans were able to recover faster than those without a ransomware recovery plan.

Why Business Continuity is Essential in Ransomware Recovery

A strong business continuity plan (BCP) is crucial for financial institutions to mitigate the impact of ransomware threats and restore critical systems without paying the ransom.

Effective business continuity strategies should include:

• Network Segmentation – Isolating critical business functions from general IT infrastructure to prevent ransomware from spreading.
• Regular Data Backups – Storing encrypted backups in secure offsite locations to quickly restore affected systems.
• Incident Response Procedures – Establishing clear recovery procedures for detecting, containing, and mitigating ransomware threats.
• Security Configurations – Ensuring that security settings, such as firewall log buffers, endpoint detection, and root access accounts, are properly secured.

By prioritizing business continuity planning, financial institutions can prevent future attacks, minimize downtime, and recover faster when disaster strikes.

Building Resiliency Against Ransomware Attacks

To effectively recover from a ransomware attack, financial institutions must adopt a multi-layered approach that strengthens network security, enhances incident response capabilities, and ensures business continuity through disaster recovery solutions.

Below are key proactive measures that institutions can implement to minimize disruption and restore systems efficiently after an attack.

Strengthening Cybersecurity Measures

A robust cybersecurity framework is the first line of defense against ransomware threats. Financial institutions must enforce best practices in network security to prevent cybercriminals from gaining unauthorized access to critical systems.

Key proactive measures include:

• Network Segmentation – Prioritize isolating critical systems from general IT infrastructure to prevent ransomware from spreading across business operations.
• Endpoint Detection and Response (EDR) – Deploy endpoint detection tools to identify weaknesses and detect ransomware behavior before it encrypts files.
• Firewall and Access Controls – Implement firewall log buffers and server message block (SMB) restrictions to reduce unauthorized network activity.
• Regular Vulnerability Scanning – Conduct regular vulnerability scanning to identify misconfigurations in operating systems, security policies, and affected devices.
• Remote Desktop Protocol (RDP) Security – Disable RDP access where unnecessary and enforce multi-factor authentication (MFA) to reduce unauthorized entry points.

By reinforcing network security through these controls, financial institutions can significantly reduce their attack surface and prevent future attacks.

Implementing Anomaly Detection Systems

Anomaly detection systems such as IMS Polaris Radar provide early detection of malicious software and ransomware threats before they can cause harm.

These systems use machine learning algorithms and behavioral analytics to:

• Monitor network traffic for unusual activity patterns.
• Detect unauthorized changes to critical system images and backup data.
• Identify compromised systems before ransomware encrypts sensitive data.
• Trigger automated security responses to unplug affected devices and isolate infected endpoints.

By integrating anomaly detection solutions into cybersecurity defenses, financial institutions can detect and respond to emerging threats in real-time, reducing incident response time and limiting damage.

Backup and Disaster Recovery Solutions

A comprehensive ransomware recovery strategy relies on disaster recovery solutions that ensure encrypted backups are securely stored and readily available.

Key backup process best practices include:

• Implementing Immutable Backups – Store backup data in read-only formats to prevent attackers from altering or deleting stored files.
• Testing Backup Systems Regularly – Conduct disaster recovery tests to verify restore systems processes and validate data integrity.
• Utilizing Cloud-Based Backup Services – Securely store backup systems in offsite cloud infrastructure to safeguard against natural disasters and on-premise breaches.
• Ensuring Recovery Point Objective (RPO) & Recovery Time Objective (RTO) Compliance – Define RPO and RTO to minimize data loss and ensure rapid recovery of business-critical functions.

With well-tested backup and disaster recovery plans, financial institutions can restore encrypted data without relying on ransom payments, ensuring the continuity of critical services.

Incident Response and Recovery Planning

A detailed ransomware recovery plan enables organizations to respond swiftly and restore normal operations following an attack.

Key components of an effective ransomware recovery plan include:

• Incident Identification and Reporting – Establish protocols for identifying and reporting compromised systems to the security team and relevant law enforcement agencies.
• Triage Affected Systems – Unplug affected devices and take the network temporarily offline to contain the infection and prevent further spread.
• Consult Federal Law Enforcement – Work with agencies such as the Cybersecurity and Infrastructure Security Agency (CISA) and federal law enforcement to assess ransomware threats and recovery options.
• Secure Organizational Communications – Define organizational communications procedures to notify internal and external teams about response actions and recovery updates.
• Post-Incident Analysis – Evaluate incident response effectiveness and implement continuous improvement measures to prevent future attacks.

By implementing a structured ransomware recovery plan, financial institutions can recover faster and minimize disruption to business operations.

Recovery Strategies for Ransomware-Affected Systems

When a ransomware attack occurs, financial institutions must act swiftly to restore systems, protect critical data, and ensure business continuity.

Effective ransomware recovery depends on proactive measures, well-defined recovery procedures, and collaboration between internal and external teams.

Prioritizing the Isolation of Affected Systems

Containing a ransomware outbreak is essential to mitigating damage and protecting critical systems.

Financial institutions should immediately disconnect affected devices, isolate infected systems from backups, and use forensic analysis tools to assess compromised data before initiating recovery.

Restoring Systems Using Secure Backups

A structured ransomware recovery plan ensures business continuity by utilizing encrypted backups and disaster recovery strategies.

Institutions should validate backup integrity, restore critical business functions first, and test recovered systems to confirm normal operations before reconnecting them to the network.

Consulting Federal Law Enforcement and Security Experts

Engaging law enforcement agencies like CISA and the FBI alongside security service providers enhances ransomware response and prevention.

Compliance with data protection regulations, forensic analysis, and shared intelligence from past incidents strengthens financial institutions’ resilience against cyber threats.

Enhancing Post-Recovery Security Configurations

After resuming business operations, financial institutions must reinforce security measures by strengthening firewall protections, restricting root access, implementing strict security configurations, and training employees to recognize phishing attempts and ransomware threats.

Conducting Regular Recovery Tests and Simulations

Regular recovery tests ensure that critical services can be restored with minimal downtime and that backup systems perform effectively during a crisis.

By testing incident response procedures, financial institutions enhance preparedness and reduce the risk of prolonged operational disruptions.

Testing methods include:

• Tabletop exercises to simulate ransomware attacks in a controlled setting.
• Full-scale recovery tests to validate the comprehensive ransomware recovery strategy.
• Regular audits of disaster recovery solutions to identify and correct security gaps.

By continuously improving ransomware recovery efforts, financial institutions can maintain business continuity and ensure their ability to withstand future attacks.

Preventative Measures to Reduce Ransomware Risk

While ransomware recovery is crucial, preventative measures such as training employees to recognize phishing attacks are equally important for financial institutions to mitigate risk and ensure business continuity.

A proactive approach reduces the likelihood of future attacks, protects critical data, and fortifies business operations.

Strengthening Endpoint Security and Network Protections

A strong network security framework is crucial for preventing ransomware infections and protecting critical business functions.

Financial institutions should implement endpoint detection solutions, network segmentation, and multi-factor authentication (MFA) while using firewall log buffers and intrusion detection systems (IDS) to monitor and block suspicious activities.

Implementing a Robust Backup and Disaster Recovery Plan

Regular data backups and disaster recovery solutions are essential for ransomware resilience and business continuity.

Using the 3-2-1 backup strategy, encrypted and immutable backups, and regular backup testing ensures data integrity, quick recovery, and protection against ransomware-encrypted files.

Conducting Regular Vulnerability Scanning and Patching

Ransomware often exploits unpatched vulnerabilities, making regular scanning and patching critical for cyber threat prevention.

Organizations should deploy security patches immediately, automate patch management, and harden security configurations to minimize system weaknesses and reduce exposure to cyber threats.

By proactively addressing security weaknesses, financial institutions can prevent ransomware threats before they infiltrate their networks.

Enhancing Employee Training and Phishing Awareness

Employees are often the first line of defense against cyber threats. A well-trained workforce can recognize and respond to phishing attacks and other common initial access vectors used in ransomware incidents. Effective training includes:

• Recognizing phishing attempts in emails, links, and attachments.
• Avoiding suspicious downloads and verifying the legitimacy of network requests.
• Reporting potential security threats to the security team immediately.
• Simulating phishing attacks to test employee awareness and improve incident response.

Ongoing cybersecurity education empowers employees to help prevent future attacks and protect critical data.

Establishing Incident Response and Organizational Communications Procedures

Having a ransomware recovery plan is essential, but financial institutions must also develop organizational communications procedures to manage cyber incidents effectively. These should include:

• Internal and external team coordination between IT, security teams, executives, and federal law enforcement.
• Predefined communication protocols to inform key stakeholders, including law enforcement agencies and regulatory bodies.
• Clear decision-making processes regarding ransom payments, compliance, and disaster recovery plan execution.
• Triage of affected systems to determine priority restoration and containment strategies.

A well-defined incident response plan ensures an effective ransomware recovery plan and a structured approach to handling cyber incidents.

The Role of Security Service Providers in Ransomware Defense

For financial institutions with limited resources, partnering with security service providers and managed security service providers (MSSPs) offers critical support in ransomware prevention and incident response. Benefits of MSSPs include:

By leveraging expert support, financial institutions can strengthen their defenses and improve their ability to recover from ransomware attacks.

Implementing a Comprehensive Ransomware Recovery Plan

A ransomware recovery plan is essential for ensuring business continuity and minimizing operational disruptions in the event of an attack. Financial institutions must have a structured recovery process that includes containment, data restoration, and security improvements to prevent future attacks.

Isolating Infected Systems and Limiting Damage

When a ransomware attack occurs, the first priority is to contain the threat by immediately isolating infected systems and limiting malware spread.

Financial institutions should unplug affected devices, temporarily take the network offline, and disable root access accounts to protect sensitive financial data and ensure essential services remain operational.

Identifying and Removing Ransomware Artifacts

To safely restore systems, organizations must eliminate all traces of malware through forensic analysis and volatile memory investigation.

Maintaining ransomware infection artifacts for law enforcement review, scanning firewall logs, and monitoring endpoint detection systems ensures a thorough system cleanup and prevents lingering threats.

Restoring Data from Secure Backups

A successful ransomware recovery depends on secure, encrypted backups that cannot be compromised by malware. Using offline or air-gapped backups, verifying data integrity, and prioritizing the restoration of critical business functions ensure business continuity and minimal downtime.

Engaging Federal Law Enforcement and Regulatory Compliance Teams

Consulting federal law enforcement agencies is essential for investigating ransomware attacks and pursuing cybercriminals while ensuring compliance with data protection regulations. Financial institutions should report incidents to regulatory authorities, conduct post-incident reviews, and implement continuous monitoring to detect and prevent future threats.

Strengthening Security Posture to Prevent Future Attacks

After recovering from a ransomware incident, financial institutions should enhance cyber resilience by regularly testing disaster recovery solutions and simulating attack scenarios.

Implementing proactive security measures, training teams on phishing detection, and improving endpoint and firewall defenses helps mitigate future cyber threats.

A continuous improvement approach ensures that financial institutions remain prepared for emerging threats and maintain business continuity in a rapidly evolving threat landscape.

Ensuring Long-Term Resilience with IMS Cloud Services

At IMS Cloud Services, we understand the critical need for financial institutions to protect against ransomware threats and ensure business continuity.

Our comprehensive ransomware recovery strategy ensures early detection of malicious software through advanced anomaly detection, 24/7 monitoring, and endpoint detection.

Encrypted backups, cloud-based disaster recovery, and incident response planning protect critical data and maintain business operations.

Don’t wait until an attack occurs—proactively secure your institution with cutting-edge ransomware recovery solutions from IMS Cloud Services.