Southeast Asia Grapples with Rising Ransomware Threat as Attacks Surge in 2024

Businesses across Southeast Asia are under siege from a relentless wave of ransomware attacks, with cybersecurity firm Kaspersky reporting an alarming average of 400 attempted breaches per day in 2024. This digital epidemic, which locks systems or encrypts data until a ransom is paid, has struck hardest in Indonesia and Vietnam, exposing vulnerabilities in the region’s corporate IT infrastructure and prompting urgent calls for stronger defenses.

A Growing Digital Menace

Ransomware, a type of malicious software, has become a pervasive threat to both individuals and organizations by blocking access to critical systems or data. Attackers demand payment—often in untraceable cryptocurrencies like Bitcoin—for a decryption key to restore access. In 2024 alone, Kaspersky’s solutions detected and blocked 135,274 ransomware attacks on businesses in Southeast Asia, a figure that underscores the scale of the crisis.

Indonesia bore the brunt of these attacks, recording 57,554 incidents, followed by Vietnam with 29,282. The Philippines, Thailand, Malaysia, and Singapore also faced significant threats, with 21,629, 13,958, 12,643, and 208 attacks respectively. These numbers, while staggering, likely represent only a fraction of the total attempts, as many go unreported or undetected.

Adrian Hia, managing director for Asia Pacific at Kaspersky, highlighted the sophistication of modern ransomware groups. “With ransomware groups leveraging increasingly sophisticated methods, companies in the region are all feeling the pressure as attackers exploit vulnerabilities in the increasingly complex corporate IT and network infrastructure” he said. His warning points to a troubling trend: cybercriminals are evolving faster than many businesses can adapt.

Vietnam in the Crosshairs

In Vietnam, the impact has been particularly acute. A 2024 report from the National Cybersecurity Association revealed that 14.6 percent of 5,000 surveyed organizations had fallen victim to ransomware. High-profile cases, such as attacks on PVOIL, VnDirect, and Vietnam Post, have demonstrated the severe and prolonged disruptions these incidents can cause. On April 12, CMC Corporation confirmed it had been targeted by the cybercriminal group Crypto24, marking yet another breach in a string of alarming incidents.

Vũ Ngọc Sơn, head of the Technology Research Unit at the National Cybersecurity Association, offered a stark analogy for these attacks. “After months of quiet observation—sometimes up to half a year—attackers know exactly where the valuable assets are, the safe’s password, and the access codes. At the right moment, they lock down the entire warehouse, and no one can access the assets inside” he explained. This methodical approach leaves victims with few options: pay the ransom or lose access to critical data indefinitely if backups are inadequate.

Economic and Operational Fallout

The economic toll of ransomware in Southeast Asia is immense. Beyond the ransoms themselves—often demanded in sums ranging from thousands to millions of dollars—businesses face downtime, lost productivity, and the cost of recovery. For smaller enterprises, a single attack can be catastrophic, potentially forcing closure. Larger corporations, while better resourced, are not immune, as evidenced by the prolonged disruptions at major Vietnamese firms.

In Thailand, where 13,958 attacks were recorded, the financial sector has been a prime target. A mid-sized bank in Bangkok reportedly paid a ransom equivalent to 5 million Thai Baht (US$140,000) earlier this year to regain access to customer data, though the incident was not publicly disclosed. Such cases highlight the dual burden of financial loss and reputational damage, as companies risk losing customer trust when breaches become public.

Across the region, the reliance on digital infrastructure has grown exponentially, driven by rapid economic development and the shift to remote work. This digital transformation, while a boon for productivity, has widened the attack surface for cybercriminals. Internet-facing applications, outdated software, and insufficient employee training are among the vulnerabilities most frequently exploited, according to Kaspersky’s analysis.

The Sophistication of Cybercrime

Ransomware groups are not merely opportunistic hackers; they operate with a level of precision and strategy akin to organized crime. Hia noted that attackers often target internet-facing applications, manipulate local accounts, and evade endpoint defenses to gain unauthorized access. “They demonstrate a sophisticated mastery of network weaknesses” he said, emphasizing that even well-known vulnerabilities remain a persistent threat when left unpatched.

The use of Bitcoin and other cryptocurrencies for ransom payments adds another layer of complexity. These digital currencies make it nearly impossible to trace perpetrators, allowing ransomware groups to operate with relative impunity. Law enforcement agencies across Southeast Asia have struggled to keep pace, hampered by limited resources and the transnational nature of cybercrime.

Regional Disparities in Preparedness

While the threat is universal, the capacity to respond varies widely across the region. Singapore, with only 208 reported attacks, benefits from robust cybersecurity frameworks and high levels of corporate awareness. In contrast, countries like Indonesia and Vietnam, with larger populations and rapidly growing digital economies, face greater challenges in securing sprawling IT networks.

In Malaysia, where 12,643 attacks were recorded, government initiatives to bolster cybersecurity have gained traction, but small and medium-sized enterprises (SMEs) remain particularly vulnerable. Many lack the budget for advanced defense systems or regular software updates, making them easy targets for attackers. A similar pattern emerges in the Philippines, where rural businesses often operate with outdated technology, further compounding the risk.

Urgent Calls for Action

Experts agree that the current landscape demands immediate and comprehensive action. Sơn stressed the need for greater cybersecurity awareness and investment in modern defense systems. “The current landscape highlights the urgent need to raise cybersecurity awareness and invest in modern defence systems” he said, urging businesses to prioritize digital resilience.

Kaspersky and other cybersecurity firms have outlined several key measures to mitigate risks. These include disabling unused ports and services, applying regular software updates and patches, conducting frequent vulnerability scans and penetration tests, training employees in cybersecurity best practices, and maintaining up-to-date backups with tested recovery procedures. Such steps, while resource-intensive, are essential to reducing the likelihood of a successful attack.

Governments in the region are also stepping up efforts. Vietnam’s Ministry of Information and Communications has launched campaigns to educate businesses on ransomware prevention, while Thailand’s National Cyber Security Agency has partnered with private firms to develop early warning systems. However, implementation remains uneven, and many organizations continue to operate without adequate safeguards.

A Forward-Looking Challenge

As Southeast Asia navigates this digital minefield, the stakes could not be higher. Ransomware is not merely a technical issue; it is a threat to economic stability, national security, and public trust in digital systems. With attackers showing no signs of slowing down, the region faces a critical juncture: invest in robust defenses now or risk falling further behind in an escalating cyber war.

For businesses and policymakers alike, the question looms large: can Southeast Asia build the resilience needed to withstand this growing threat, or will ransomware continue to exploit the gaps in an increasingly connected world?