Southeast Asia Faces Rising Ransomware Threat as Attacks Surge in 2024

Businesses across Southeast Asia are grappling with an escalating wave of ransomware attacks, with cybersecurity firm Kaspersky reporting an average of 400 attempted breaches per day in 2024. The region, including countries like Vietnam, Indonesia, and Thailand, recorded a staggering 135,274 ransomware incidents last year, exposing vulnerabilities in corporate IT systems and highlighting the urgent need for stronger digital defenses.

A Growing Digital Menace

Ransomware, a type of malicious software that locks access to systems or encrypts data until a ransom is paid, has emerged as a critical threat to both individuals and organizations. In Southeast Asia, the scale of the problem is alarming. Indonesia bore the brunt of the attacks in 2024, with 57,554 incidents, followed by Vietnam with 29,282, the Philippines with 21,629, Thailand with 13,958, Malaysia with 12,643, and Singapore with a comparatively lower 208 cases, according to Kaspersky’s data.

The financial and operational toll of these attacks can be devastating. Once attackers gain control, they often demand payment in untraceable cryptocurrencies like Bitcoin, leaving victims with few options if data backups are inadequate. For businesses, the stakes are even higher, as prolonged downtime and loss of critical data can cripple operations and erode public trust.

High-Profile Breaches in Vietnam

In Vietnam, the ransomware crisis has struck at the heart of major corporations. A 2024 report from the National Cybersecurity Association found that 14.6 percent of 5,000 surveyed organizations had fallen victim to such attacks. Notable cases include breaches at PVOIL, a leading oil and gas company, VnDirect, a prominent securities firm, and Vietnam Post, the national postal service. These incidents, some lasting weeks, have underscored the sophistication and persistence of cybercriminals targeting the country’s infrastructure.

On April 12, CMC Corporation, a major Vietnamese tech firm, confirmed it had been hit by a targeted ransomware attack orchestrated by the cybercriminal group Crypto24. This breach is part of a troubling pattern of high-profile incidents that have rattled the nation’s business community. Vũ Ngọc Sơn, head of the Technology Research Unit at the National Cybersecurity Association, offered a chilling analogy for how these attacks unfold: “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.”

Sơn’s warning points to a broader issue: the stealth and patience of ransomware operators, who often infiltrate systems long before executing their final move. Without robust defenses, companies remain vulnerable to these calculated strikes.

Sophisticated Tactics and Exploited Weaknesses

Across the region, ransomware groups are refining their methods, exploiting gaps in corporate networks with alarming precision. Adrian Hia, managing director for Asia Pacific at Kaspersky, noted the evolving nature of the threat. “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.

Hia highlighted specific tactics, such as targeting internet-facing applications, manipulating local accounts, and evading endpoint defenses. These strategies demonstrate a deep understanding of network weaknesses, allowing attackers to bypass traditional security measures. The persistence of these groups, often exploiting even well-known vulnerabilities, underscores the need for constant vigilance and updated defenses.

Economic Implications of a Digital Crisis

The economic fallout from ransomware attacks in Southeast Asia is profound, particularly for small and medium-sized enterprises (SMEs) that form the backbone of many regional economies. For businesses in Vietnam, Thailand, and Indonesia, the cost of recovery—whether through ransom payments or system restoration—can be staggering. While exact figures vary, ransoms often range in the thousands to millions of dollars, with additional losses from operational downtime and reputational damage.

In Vietnam alone, the financial impact on affected companies like VnDirect and PVOIL has been significant, though precise amounts remain undisclosed. Beyond direct costs, there’s a ripple effect on consumer confidence and investor trust, particularly in sectors like finance and logistics, which are frequent targets. If a major securities firm or postal service is compromised, the broader public begins to question the safety of digital transactions and services—a concern that could slow the region’s push toward digital economies.

Moreover, the reliance on cryptocurrencies for ransom payments complicates law enforcement efforts. Bitcoin and other digital currencies, while not inherently illegal, provide a veil of anonymity that makes tracking perpetrators nearly impossible. This dynamic has emboldened cybercriminals, who operate with relative impunity across borders, often from jurisdictions with lax cybersecurity regulations.

Call for Stronger Defenses

Experts are unanimous in their call for urgent action to combat the ransomware surge. Vũ Ngọc Sơn emphasized the importance of raising cybersecurity awareness and investing in modern defense systems. Basic measures, such as disabling unused ports and services, applying regular software updates, and conducting vulnerability scans, can significantly reduce risks. Equally critical is employee training—human error, such as clicking on phishing emails, remains a common entry point for attackers.

Adrian Hia echoed these recommendations, stressing the need for robust cybersecurity frameworks that evolve alongside threats. “The ongoing threat emphasizes the urgent need for robust cybersecurity defenses, as adversaries continue to innovate and exploit even the most familiar vulnerabilities” he said. He advocated for frequent penetration testing and maintaining up-to-date backups with tested recovery procedures—steps that could mean the difference between a swift recovery and a prolonged crisis.

For governments in the region, the challenge extends beyond individual businesses to national security. Critical infrastructure, including energy grids and transportation systems, is increasingly at risk. In response, countries like Vietnam and Thailand have begun rolling out stricter cybersecurity regulations, though enforcement remains inconsistent. Collaborative efforts, such as regional task forces to combat cybercrime, could offer a path forward, but political and logistical hurdles often slow progress.

A Regional and Global Challenge

The ransomware crisis in Southeast Asia is not an isolated phenomenon but part of a global surge in cybercrime. As businesses worldwide become more interconnected through cloud services and remote work, the attack surface for cybercriminals expands. Southeast Asia, with its rapidly growing digital economy and varying levels of cybersecurity maturity, presents an attractive target. Nations like Singapore, despite recording fewer attacks, are not immune, as their role as a financial hub makes them high-value targets for sophisticated breaches.

International cooperation is essential to address this borderless threat. Organizations like Interpol and regional bodies such as ASEAN have initiated programs to enhance cybersecurity collaboration, but the pace of these efforts often lags behind the adaptability of cybercriminals. For now, much of the burden falls on individual companies to fortify their defenses—a daunting task for under-resourced SMEs.

Looking Ahead: A Race Against Time

As ransomware attacks continue to plague Southeast Asia, the region faces a race against time to bolster its digital defenses. The 135,274 incidents reported by Kaspersky in 2024 are likely just the tip of the iceberg, with many breaches going unreported due to reputational concerns or lack of detection. Without concerted action from businesses, governments, and international partners, the economic and societal costs of these attacks will only grow.

For now, the message from experts is clear: prevention is better than cure. As cybercriminals refine their tactics, companies must prioritize cybersecurity as a core business function, not an afterthought. Whether this wake-up call will spur lasting change remains to be seen, but one thing is certain—the digital battleground in Southeast Asia is only heating up.