Why AxCrypt Is Your Ally in the Face of Cyberattacks

You might have heard about the recent cyberattack on US companies that disrupted various industries. This attack, linked to China cyberattacks, sent shockwaves through the business world, underscoring the growing sophistication of modern hackers. From stealing sensitive data to crippling operations, the implications of such attacks are dire, especially as businesses and individuals alike increasingly rely on digital systems.

In this blog, we’ll break down what happened, how cyberattacks occur, and most importantly, how cybersecurity solutions like AxCrypt and its .axx file format can help protect your files and data from falling into the wrong hands.

Did you know that cybercrime is projected to cost the global economy a staggering $10.5 trillion annually by 2025? That’s more than some countries' entire GDP!

So, why are cyberattacks becoming so rampant?

A series of cyberattacks linked to China targeted U.S. companies and government systems. These attacks, attributed to hacking groups like FamousSparrow, were operations aimed at stealing data and intelligence. Since 2020, the Salt Typhoon campaign has been operating under multiple names, such as Ghost Emperor, Famous Sparrow, and UNC2286, with each cybersecurity firm assigning a different label to the same threat.

While FamousSparrow has previously targeted government entities and hotels across multiple countries, the Salt Typhoon campaign has been specifically linked to the United States. These incidents coincide with the U.S. semiconductor trade war, with some attacks seemingly aimed at disrupting critical sectors.

The Salt Typhoon campaign aimed at compromising the digital backbone of U.S. companies by infiltrating telecommunications networks, a critical infrastructure for communication and data transmission.

FamousSparrow focused on hotels in countries like the UK, France, and Taiwan. Their aim was to steal sensitive guest data, which could include information on diplomats, corporate executives, or high-profile travelers.

Government organizations in countries like Israel, Saudi Arabia, and Brazil were also frequent targets. Such attacks often focus on gathering intelligence to fuel state-sponsored agendas.

While the direct link between the attacks and the U.S.-China trade war is speculative, the timing suggests a strategic intent. U.S. restrictions on advanced chip sales to China and China’s countermeasures banning mineral exports have heightened tensions.

1. Advanced Cyber Attack Strategies

2. State-Sponsored Support

FamousSparrow and Salt Typhoon appear to display characteristics typically associated with state-aligned groups, including access to substantial resources and long-term planning. Their techniques indicate the use of advanced tools and insider expertise.

3. Intelligence Gathering

The attacks are not random; they are part of broader espionage campaigns. Hotels, for instance, are targeted for their potential to house valuable individuals, while telecommunication networks provide access to large volumes of data at scale.

4. Geopolitical Context

If you think only large corporations are targeted, think again. Small and medium-sized businesses (SMBs) are often seen as easier prey. Here’s what could happen if you’re hit:

1. Financial Devastation: After the Colonial Pipeline ransomware attack, the company had to pay $4.4 million just to regain access to their systems.

2. Reputation Loss: Customers lose trust quickly. When Target’s data breach exposed 40 million credit card details, it took years for them to regain customer confidence.

3. Operational Disruption: Imagine losing access to all your files overnight. That’s what happens when ransomware strikes.

Every cyberattack leaves behind lessons. From the China attack and others like it, here’s what we can take away:

For example, in 2017, the WannaCry ransomware encrypted files on thousands of computers across 150 countries, making them inaccessible. Organizations with proper backups and updated systems recovered quickly, while others faced weeks of disruption.

Governments are no longer sitting on the sidelines. They’re stepping up with regulations, sanctions, and collaborations to fight cybercrime.

So, what can your business do to avoid becoming the next headline?

1. Invest in Encryption Tool for SMBs: Tools like AxCrypt and its secure .axx file format ensure your files are encrypted, making them useless even if hackers get their hands on them.

2. Backup, Backup, Backup: Always keep secure backups of critical data. If ransomware locks you out, you’ll still have access.

3. Conduct Regular Audits: Hire experts to identify weak points in your system.

Take Marriott International as an example. After their 2018 breach that exposed 500 million guest records, the company revamped its cybersecurity protocols.

When it comes to protecting your files, encryption is non-negotiable. AxCrypt, a trusted name in file encryption, offers:

Strongest Security with AES-256 Encryption

AxCrypt uses AES-256 encryption, the gold standard in data security. Whether you're securing financial records, client information, or sensitive intellectual property, AxCrypt provides robust protection for corporate data protection in an era of advanced cyber threats.

Collaborate Without Sacrificing Security

With AxCrypt, you can securely share encrypted .axx files with trusted partners. The platform ensures sensitive information remains protected, even during critical situations like ransomware attacks.

User-Friendly Design for Rapid Implementation

AxCrypt’s intuitive interface enables businesses to adopt cybersecurity practices quickly, minimizing downtime and vulnerabilities during a cyber crisis.

Prepare for the Worst with AxCrypt

AxCrypt equips your business with the tools to defend against ransomware protection, ensuring your data remains secure in the face of advanced threats.

With AxCrypt, you’re not just reacting to threats—you’re proactively safeguarding your data in a world of evolving cybersecurity solutions.

Jericho Security. (n.d.). Cost of cybercrime to reach $10.5 trillion by 2025. Jericho Security Blog.

CoverLink. (n.d.). Target data breach: Lessons for businesses. CoverLink Cyber Liability Insurance.

TechTarget. (n.d.). Colonial Pipeline hack explained: Everything you need to know. TechTarget.

S&P Global. (n.d.). Semiconductor supply chain disruption: U.S.-China trade conflict. S&P Global Mobility.

Green, J. J. (2024, December). The worst telecommunications hack in U.S. history: Chinese cyber group Salt Typhoon intrusions likely started years ago. WTOP News.

The Guardian. (2024, December 9). Why did China hack the world’s phone networks?. The Guardian.