Ransomware as a Service explained: What businesses need to know

Ransomware has evolved over the years, from simple malware that encrypts a victim’s files to sophisticated threats capable of locking entire business networks, making it impossible for organizations to access their own critical data. What makes this form of attack even more alarming these days is the emergence of Ransomware as a Service (RaaS) — a commodified version of this dangerous malware that allows criminals with little technical expertise to launch devastating ransomware attacks.

Let’s take a closer look at how RaaS operates and why it poses a major threat to businesses.

What is Ransomware as a Service?

At its core, RaaS is a business model used by black hat developers to commodify ransomware and make it available to affiliates. It allows anyone, regardless of their technical expertise, to launch ransomware attacks. This service model makes it possible for even novice threat actors to engage in cyber extortion.

The RaaS model operates much like a franchise system. The RaaS operators provide malware tools such as RaaS kits, encryption software, and decryption keys, along with a structured business model that facilitates the ransom payments and victim negotiations. Meanwhile, RaaS affiliates (or customers) deploy the ransomware, identify targets, and execute attacks. In return, they may share a portion of the profits with operators, pay a fee for using the RaaS platform, or a combination of both.

How does the RaaS Model work?

While RaaS groups function differently, their business model remains generally consistent. Here’s how it works:

Recruiting via dark web forums

RaaS providers recruit affiliates through forums, offering them access to ransomware tools in exchange for a cut of the profits. These typically have .onion domains, as they are found on the dark web, a corner of cyberspace most commonly associated with illegal activities.

Building a ransomware campaign

Once an affiliate joins the program, they can build their own ransomware package. This allows them to customize the malware to suit their target and adjust the encryption and ransom demands.

Acquiring targets

RaaS affiliates then identify targets based on the potential payout from a ransomware victim. Healthcare organizations, in particular, are a favorite target due to the nature of the data they manage, not to mention the general willingness of most healthcare companies to pay ransom in order to restore services as soon as possible. The affiliates may also consider targets that lack proper cybersecurity measures.

Setting the ransom demand

RaaS affiliates set the ransom demand based on factors such as the target’s estimated revenue and how critical their data is to their operations. Ransom demands these days often run up to millions of dollars.

Compromising the victim’s assets

The affiliate then uses malicious links, phishing attacks, or other forms of malicious code to infiltrate the victim’s systems. If the malware gains a foothold in the target’s device, it encrypts the victim’s data and locks them out of their files.

Setting up payment portals

After encryption, the RaaS operators assist affiliates by setting up a payment portal for the victim to send the ransom payments. This often includes offering decryption keys if the demands are met.

Negotiating the ransom

RaaS affiliates usually directly contact the victim, demanding payment in untraceable cryptocurrency before they hand out the decryption keys. Double extortion, or the threat of releasing sensitive data if the ransom isn’t paid, is another method used by RaaS attackers to pressure victims to comply with their demands.

Providing service updates and ongoing support

Similar to legitimate services, RaaS operators may provide their affiliates with quality of life updates to make ransomware kits more intuitive. They may also create private, untraceable communication channels to support their affiliates and increase the chances of a ransom payout.  

The four types of RaaS revenue models

Both operators and affiliates benefit from a successful ransomware breach. In fact, they often split the profits based on four distinct revenue models:

• Pure profit sharing: The RaaS provider and the affiliate share a percentage of the ransom payments. The more successful the ransomware campaign, the higher the affiliate’s cut.
• Subscription-based: Some RaaS providers offer their services through a monthly subscription. Affiliates pay a fee to access the ransomware tools and then keep 100% of the ransom payments.
• Per-ransom demand: Some RaaS providers charge a flat fee for each ransom demand that the affiliate sends out. The affiliate keeps all profits from the ransom once the payment is collected.
• Freemium models: In this setup, RaaS affiliates get access to a basic package of ransomware tools for free but must pay extra for additional features, such as more sophisticated encryption methods or advanced decryption keys.

Why is RaaS growing?

The primary reason behind the proliferation of RaaS is easy financial gain. RaaS attackers can focus their resources on mounting the actual attack instead of spending time developing the software they need to conduct the attack. RaaS also has a lower barrier to entry for cybercriminals who may not have the technical skills or resources to create their own ransomware from scratch. This has led to the rapid growth of RaaS as a popular method for cybercriminals to make money.

Tips for protecting your business from RaaS attacks

With RaaS becoming more prevalent, businesses must be proactive in defending against ransomware attacks. Here are strategies to prevent attackers from zeroing in on your business:

• Regularly patch updates and upgrade hardware and software whenever necessary to minimize the risk of security vulnerabilities.
• Implement granular access controls that limit access on a must-have basis. 
• Invest in endpoint management software and antivirus protection to detect and prevent malicious links, malware, and other advanced threats.
• Frequently back up your data and create multiple copies stored in various locations (e.g., off-site servers and cloud storage) so that your business can restore fresh, uncorrupted data in case of a ransomware infection.
• Conduct regular security training to help your team identify and avoid phishing emails, which are the most common method for deploying ransomware. 
• Segment your networks to limit the spread of ransomware across your organization if an infection occurs.

The rise of RaaS in 2025 has made ransomware attacks more accessible and profitable for cybercriminals. With ransomware operators becoming more organized and sophisticated, it’s never been more important to safeguard your organization’s data, systems, and people.

Dynamic Solutions Group provides proactive ransomware protection and advanced cybersecurity solutions to give you peace of mind. Contact us today.