Inside a Real Cyber Attack: Step-By-Step Breakdown

📋 TL;DR: The Bottom Line

Cyber attacks are slow, planned, and almost always start with a phishing email. Companies lose millions because basic defenses are missing—not because hackers are brilliant.

In the attack we’ll dissect: One employee clicked a link at 9:52 AM. Six months later, the company paid $500,000 in ransom and lost $3 million total. The attack succeeded through 7 phases over 180 days, exploiting basic security gaps that exist in most organizations. The solution? Email security, MFA, network segmentation, and backups—fundamentals that prevent 99% of attacks.

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Introduction: Walking Through the Digital Crime Scene

Sarah clicked a link at 9:52 AM. By 2:00 AM six months later, the company was dead.

The average cyber attack takes 204 days to detect—and by then, the damage is done. Most people imagine hackers as shadowy figures typing code in dark rooms, but the reality is far more methodical and terrifying. This guide takes you inside a real cyber attack, step-by-step, showing exactly how criminals breach systems, steal data, and disappear without a trace.

In 2024, the global cost of cybercrime reached $9.5 trillion, with attacks increasing by 15% year-over-year. Understanding how these attacks unfold is your first line of defense. This isn’t theoretical—we’re walking through an actual attack chain that happens thousands of times daily.

The attack we’ll dissect: A ransomware attack on a mid-sized company that started with a single phishing email and ended with complete network encryption and a $500,000 ransom demand. This scenario represents 73% of all ransomware attacks in 2024. Learn more about how ransomware works and comprehensive cybersecurity strategies.

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⚠️ The 10-Second Executive Summary

The Attack Timeline:

• Day 1: Phishing email delivered → Employee clicks malicious link
• Day 2-5: Malware establishes foothold → Lateral movement begins
• Day 6-30: Attackers map network → Steal credentials → Access critical systems
• Day 31-180: Data exfiltration → Ransomware deployment → $500K demand

🎯 Critical Defense Points:

• → Email security filters (block 99% of phishing)
• → Endpoint detection and response (EDR) systems
• → Network segmentation (contain breaches)
• → Regular backups (recover without paying ransom)

The harsh truth: Most attacks succeed because of basic security gaps, not sophisticated hacking.

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🎯 Visual Attack Flow: The Complete Chain

Phishing Email (Day 1)
    ↓
Malware Installed (Day 2)
    ↓
Credentials Stolen (Day 8)
    ↓
Lateral Movement (Day 12-30)
    ↓
Privilege Escalation (Day 40)
    ↓
Data Stolen (Day 65-120)
    ↓
Ransomware Deployed (Day 150)
    ↓
Business Collapse ($3M Loss)

This visual shows the attack chain from a single click to total business disruption. Each phase builds on the previous one, making early detection critical.

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⏱️ Fast Start: 15-Minute Version

If you only do ONE thing today:

1. Enable email security filters on your organization’s email system
2. Enable multi-factor authentication (MFA) on all critical accounts

Why this works: 91% of cyber attacks start with phishing emails. Blocking malicious emails and requiring MFA stops 99% of automated credential theft attempts. This single change prevents the majority of attacks before they begin.

Ready to understand the full attack chain? Continue reading below.

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📥 Download the Attack Chain Checklist (Free)

Get a 1-page printable version of this breakdown — perfect for:

• Security team training
• Executive briefings
• Incident response planning
• Board presentations

Download Free Attack Chain Checklist → (Link to your resource page or download)

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Table of Contents

1. The Target: Why This Company Was Chosen
2. Phase 1: Initial Compromise (Day 1)
3. Phase 2: Establishing Persistence (Day 2-5)
4. Phase 3: Reconnaissance & Lateral Movement (Day 6-30)
5. Phase 4: Privilege Escalation & Credential Theft (Day 31-60)
6. Phase 5: Data Exfiltration (Day 61-120)
7. Phase 6: Ransomware Deployment (Day 121-180)
8. Phase 7: The Aftermath & Detection
9. Defense Strategies: How to Prevent Each Phase
10. FAQ: Real Cyber Attack Questions
11. Conclusion: Lessons from the Digital Battlefield

1. The Target: Why This Company Was Chosen

The Victim Profile

Company: Mid-sized manufacturing firm (250 employees, $50M revenue)
Industry: Industrial equipment manufacturing
Security Posture: Basic antivirus, no dedicated IT security team, minimal employee training

Why Attackers Selected This Target

Attackers don’t choose targets randomly. They follow a ROI (Return on Investment) model:

1. Vulnerability Assessment: The company’s website revealed outdated software versions through automated scanning
2. Employee Research: LinkedIn showed 40% of employees had been with the company 10+ years (less likely to question suspicious emails)
3. Financial Capacity: Public records showed healthy revenue—enough to pay a substantial ransom
4. Low Security Profile: No mention of security certifications or advanced defenses in public materials
5. Supply Chain Value: Manufacturing companies often have valuable intellectual property and customer data

The Economics: Attackers invest 2-3 weeks in reconnaissance for targets that can pay $100K-$1M in ransom. This company fit the profile perfectly.

2. Phase 1: Initial Compromise (Day 1)

The Phishing Email

Time: 9:47 AM, Tuesday
Target: Sarah, Accounts Payable Manager
Subject: “URGENT: Invoice Payment Required - Action Needed Today”

From: accounting@supplier-partner.com
To: sarah@targetcompany.com
Subject: URGENT: Invoice Payment Required - Action Needed Today

Hi Sarah,

We need to process an urgent payment for invoice #INV-2024-7842. 
Please review and approve at your earliest convenience.

[View Invoice] ← Malicious link

Best regards,
Michael Chen
Accounting Department

Why This Worked:

• Urgency: “URGENT” and “Action Needed Today” created time pressure
• Authority: Appeared to come from a known supplier
• Context: Sarah’s role involves invoice processing daily
• Social Engineering: No obvious red flags—professional tone, correct name

The Click

9:52 AM: Sarah clicks the link, expecting an invoice portal.

What Actually Happened:

1. Link redirected through 3 domains (obfuscation)
2. Final destination: Compromised WordPress site hosting exploit kit
3. Browser vulnerability (CVE-2024-XXXX) automatically exploited
4. Malicious payload downloaded and executed silently

The Payload: A lightweight “dropper” malware (15KB) that:

• Established outbound connection to attacker’s command & control (C2) server
• Downloaded full malware suite (Emotet variant)
• Disabled Windows Defender temporarily
• Created scheduled task for persistence

Detection Status: ❌ Not detected. Basic antivirus didn’t recognize the zero-day exploit.

🛡️ Stop This Phase: Defensive Actions

To prevent initial compromise:

• ✅ Enable anti-phish email gateway (blocks 99.9% of malicious emails)
• ✅ Train accounting team monthly (phishing simulation exercises)
• ✅ Enable link-rewriting + sandboxing (all links scanned before delivery)
• ✅ Implement SPF/DKIM/DMARC (email authentication protocols)
• ✅ Deploy browser isolation (suspicious sites open in isolated containers)

Cost: Email security filtering costs $2-5 per user/month. Prevents 91% of all cyber attacks.

3. Phase 2: Establishing Persistence (Day 2-5)

Day 2: Malware Installation

10:15 AM: Full malware suite installed on Sarah’s workstation.

Components Deployed:

1. Backdoor: Remote access trojan (RAT) for command execution
2. Credential Harvester: Keylogger and memory scraper for passwords
3. Network Scanner: Tool to map internal network
4. Lateral Movement Tool: Mimikatz (steals Windows credentials from memory)

Persistence Mechanisms:

• Scheduled task: Runs every 15 minutes
• Registry modification: Starts on boot
• Service creation: Appears as “Windows Update Service”
• Fileless technique: Lives in memory, minimal disk footprint

Day 3-5: Initial Reconnaissance

What Attackers Discovered:

• Network topology: 3 subnets (corporate, production, guest)
• Active Directory domain: “TARGETCORP.local”
• Domain controllers: 2 servers identified
• File shares: 12 network drives mapped
• User accounts: 247 active accounts enumerated
• Privileged accounts: 8 admin accounts identified

Tools Used:

• nmap: Network scanning
• BloodHound: Active Directory mapping
• PowerShell: Native Windows tool (doesn’t trigger alerts)
• Cobalt Strike: Commercial attack framework

Detection Status: ⚠️ Partial. Network monitoring showed unusual outbound connections, but no alert was generated.

🛡️ Stop This Phase: Defensive Actions

To prevent persistence:

• ✅ Deploy EDR (Endpoint Detection and Response) (real-time threat hunting)
• ✅ Implement application whitelisting (only approved software runs)
• ✅ Remove admin rights from users (principle of least privilege)
• ✅ Enable patch management (systems updated within 48 hours)
• ✅ Monitor process creation (detect unusual executables)

Cost: EDR solutions start at $5-10 per endpoint/month. Detects 95% of malware that bypasses antivirus.

4. Phase 3: Reconnaissance & Lateral Movement (Day 6-30)

Week 2: Moving Through the Network

Day 8: Attackers used Sarah’s credentials to access file shares.

Discovery: Found password spreadsheet in “IT Documentation” folder:

File: passwords.xlsx
Location: \\fileserver\IT\Documentation\
Contents: 47 passwords in plain text

Day 12: Used stolen credentials to access IT administrator account.

Day 15: Gained access to domain controller backup files.

Day 20: Extracted Active Directory database (ntds.dit) containing all user password hashes.

The Attack Chain Visualization

Initial Compromise (Sarah's PC)
    ↓
Credential Theft (Keylogger)
    ↓
Lateral Movement (Stolen Passwords)
    ↓
Privilege Escalation (Admin Account)
    ↓
Domain Controller Access
    ↓
Full Network Control
    ↓
Data Exfiltration
    ↓
Ransomware Deployment

Detection Status: ❌ Not detected. No security monitoring tools in place.

🛡️ Stop This Phase: Defensive Actions

To prevent lateral movement:

• ✅ Segment your network (isolate critical systems with firewalls)
• ✅ Implement network access control (NAC) (devices must be authorized)
• ✅ Use VLANs (separate network zones by function)
• ✅ Monitor east-west traffic (internal network communication)
• ✅ Deploy password manager (unique passwords for every account)
• ✅ Enable MFA everywhere (multi-factor authentication on all systems)

Cost: Network segmentation is mostly configuration work. MFA is free for most platforms. Prevents 80% of credential-based attacks.

5. Phase 4: Privilege Escalation & Credential Theft (Day 31-60)

Gaining Domain Admin Access

Day 35: Attackers cracked password hashes using GPU clusters.

Method:

• Extracted password hashes from ntds.dit
• Used Hashcat with dictionary attack
• 23% of passwords cracked in 4 hours (common passwords like “Password123!”)
• Used cracked passwords to access higher-privilege accounts

Day 40: Achieved Domain Administrator privileges.

What This Unlocked:

• Full control over all systems
• Ability to create/delete user accounts
• Access to all file shares
• Ability to disable security tools
• Control over backup systems

Disabling Defenses

Day 45: Attackers systematically disabled security:

1. Antivirus: Disabled via Group Policy
2. Windows Firewall: Rules modified to allow attacker traffic
3. Backup Systems: Scheduled backups disabled
4. Logging: Event logs cleared
5. Security Alerts: Email notifications disabled

Detection Status: ❌ Not detected. No security team monitoring.

🛡️ Stop This Phase: Defensive Actions

To prevent privilege escalation:

• ✅ Implement principle of least privilege (users get minimum access needed)
• ✅ Use just-in-time access (admin rights granted temporarily)
• ✅ Conduct regular access reviews (quarterly audits of permissions)
• ✅ Separate admin accounts (daily-use accounts ≠ admin accounts)
• ✅ Enable privileged access management (PAM) (admin access requires approval)
• ✅ Enforce strong password policies (complexity, length, rotation)

Cost: Access management tools start at $10-20 per user/month. Prevents 70% of privilege escalation attacks.

6. Phase 5: Data Exfiltration (Day 61-120)

The Theft Begins

Day 65: Attackers began exfiltrating data in small, encrypted chunks.

Data Stolen:

• Customer database: 12,000 records (names, addresses, payment info)
• Financial records: 5 years of accounting data
• Intellectual property: Product designs, manufacturing processes
• Employee data: Social Security numbers, salary information
• Email archives: 3 years of corporate communications

Exfiltration Method:

• Data compressed and encrypted
• Uploaded to cloud storage (Google Drive, Dropbox) using legitimate accounts
• Transferred during business hours (blends with normal traffic)
• Rate-limited to avoid detection (2-5 GB per day)
• Total exfiltrated: 847 GB over 60 days

Why They Stole Data First

Double Extortion Strategy:

1. Encrypt systems → Demand ransom for decryption
2. Threaten data leak → Demand additional ransom to prevent publication

This increases pressure and payment likelihood by 40%.

Detection Status: ⚠️ Suspicious network activity noticed, but attributed to “backup processes.”

🛡️ Stop This Phase: Defensive Actions

To prevent data exfiltration:

• ✅ Deploy DLP (Data Loss Prevention) (monitor outbound data transfers)
• ✅ Encrypt sensitive data at rest (protect data even if stolen)
• ✅ Implement data classification (tag data by sensitivity level)
• ✅ Block unauthorized cloud storage (prevent data uploads to Dropbox, etc.)
• ✅ Deploy SIEM (centralized log analysis and alerting)
• ✅ Monitor network traffic (identify unusual data transfers)
• ✅ Use anomaly detection (AI-powered detection of unusual behavior)

Cost: DLP solutions start at $5-15 per user/month. SIEM starts at $1,000/month. Detects 90% of data exfiltration attempts.

7. Phase 6: Ransomware Deployment (Day 121-180)

The Final Strike

Day 150: Attackers deployed ransomware across the entire network.

Deployment Method:

1. Preparation: Disabled remaining security tools
2. Distribution: Used Group Policy to push ransomware to all 247 workstations
3. Execution: Triggered simultaneously at 2:00 AM (minimal users online)
4. Encryption: Encrypted all files with AES-256 encryption
5. Ransom Note: Displayed on every screen

The Ransom Note

YOUR FILES HAVE BEEN ENCRYPTED

All your important files have been encrypted with military-grade encryption.
To recover your files, you must pay 5.2 Bitcoin (approximately $500,000 USD).

Payment must be made within 7 days, or your files will be permanently deleted.
We have also copied your data. If you don't pay, we will publish it on the dark web.

To pay: [Bitcoin Wallet Address]
Contact: [Tor-based email address]

DO NOT attempt to restore from backups. We have already encrypted your backups.

The Impact

Immediate Effects:

• All 247 workstations encrypted
• 12 file servers encrypted
• Production systems offline
• Email system down
• Customer portal inaccessible
• Estimated downtime: 2-3 weeks

Financial Impact:

• Ransom demand: $500,000
• Business interruption: $2.1 million (lost revenue)
• Recovery costs: $350,000 (IT services, new hardware)
• Regulatory fines: $125,000 (data breach notification)
• Total: $3.075 million

🛡️ Stop This Phase: Defensive Actions

To prevent ransomware deployment:

• ✅ Implement 3-2-1 backup rule (3 copies, 2 media types, 1 offsite)
• ✅ Use immutable backups (backups that can’t be deleted or encrypted)
• ✅ Create air-gapped backups (backups not connected to network)
• ✅ Test backups monthly (regular restoration tests)
• ✅ Deploy application control (prevent unauthorized software execution)
• ✅ Enable behavioral analysis (detect encryption behavior patterns)
• ✅ Segment critical systems (isolate backups from production network)

Cost: Backup solutions start at $50-200/month. Immutable backups add 20-30% cost. Prevents 99% of ransomware impact if backups are protected.

8. Phase 7: The Aftermath & Detection

Discovery

Day 180 (6 months after initial breach): Company discovered the attack when employees arrived to find all systems encrypted.

Why Detection Took So Long:

• No security monitoring tools
• No log analysis
• No network traffic monitoring
• No endpoint detection and response (EDR)
• No security awareness training
• No incident response plan

The Response

Day 1 of Response:

• Contacted law enforcement (FBI Cyber Division)
• Engaged incident response firm
• Assessed damage scope
• Determined backup systems were also encrypted

Day 3: Decision made: Pay the ransom (backups were compromised)

Day 5: Bitcoin payment sent ($500,000)

Day 7: Decryption keys received, systems slowly restored

Day 30: Full recovery completed, but data had been stolen and published on dark web anyway.

The Lessons

What Went Wrong:

1. No email security filtering
2. No endpoint detection
3. No network segmentation
4. Weak password policies
5. No security monitoring
6. No employee training
7. No incident response plan
8. Backups not isolated from network

9. Defense Strategies: How to Prevent Each Phase

Prevent Phase 1: Initial Compromise

Email Security:

• Advanced Threat Protection: AI-powered email filtering (blocks 99.9% of phishing)
• URL Rewriting: All links scanned before delivery
• Attachment Sandboxing: Suspicious files analyzed in isolated environment
• SPF/DKIM/DMARC: Email authentication protocols

User Training:

• Phishing simulation exercises (monthly)
• Security awareness training (quarterly)
• Reporting mechanism for suspicious emails

Prevent Phase 2: Persistence

Endpoint Protection:

• EDR (Endpoint Detection and Response): Real-time monitoring and threat hunting
• Application Whitelisting: Only approved software can run
• Privilege Management: Users don’t have admin rights
• Patch Management: Systems updated within 48 hours of patch release

Prevent Phase 3: Lateral Movement

Network Segmentation:

• Isolate critical systems (domain controllers, file servers)
• Implement network access control (NAC)
• Use VLANs to separate network zones
• Monitor east-west traffic (internal network communication)

Credential Protection:

• Password Manager: Unique, complex passwords for every account
• MFA Everywhere: Multi-factor authentication on all systems
• Privileged Access Management: Admin accounts require additional approval
• Regular Password Audits: Identify and change weak passwords

Prevent Phase 4: Privilege Escalation

Access Controls:

• Principle of Least Privilege: Users only get minimum access needed
• Just-In-Time Access: Admin rights granted temporarily when needed
• Regular Access Reviews: Quarterly audits of user permissions
• Separate Admin Accounts: Daily-use accounts ≠ admin accounts

Prevent Phase 5: Data Exfiltration

Data Loss Prevention (DLP):

• Monitor data transfers (outbound email, cloud uploads)
• Encrypt sensitive data at rest
• Implement data classification (public, internal, confidential)
• Block unauthorized cloud storage access

Network Monitoring:

• SIEM (Security Information and Event Management): Centralized log analysis
• Network Traffic Analysis: Identify unusual data transfers
• Data Flow Mapping: Understand where sensitive data lives
• Anomaly Detection: AI-powered detection of unusual behavior

Prevent Phase 6: Ransomware Deployment

Backup Strategy:

• 3-2-1 Rule: 3 copies, 2 different media, 1 offsite
• Immutable Backups: Backups that can’t be deleted or encrypted
• Air-Gapped Backups: Backups not connected to network
• Regular Testing: Monthly backup restoration tests

Ransomware Protection:

• Application Control: Prevent unauthorized software execution
• Behavioral Analysis: Detect encryption behavior patterns
• Network Segmentation: Isolate critical systems
• Incident Response Plan: Pre-defined response procedures

10. FAQ: Real Cyber Attack Questions

Q: How long do attackers typically stay in a network before deploying ransomware? A: Average dwell time is 60-180 days. Attackers take time to:

• Map the network thoroughly
• Steal all valuable data
• Disable security controls
• Ensure maximum impact

Q: Why don’t companies detect these attacks sooner? A: Most organizations lack:

• Security monitoring tools (SIEM, EDR)
• Trained security analysts
• Network visibility
• Log retention and analysis
• Threat intelligence feeds

Q: Should companies pay ransomware demands? A: Law enforcement recommends not paying, but many companies do because:

• Business continuity is critical
• Backups may be compromised
• Data may be permanently lost
• However, paying doesn’t guarantee:
  • Decryption keys will work
  • Data won’t be published anyway
  • Attackers won’t return

Q: How can small businesses defend against these attacks? A: Focus on fundamentals:

1. Email security (filtering, training)
2. MFA on all accounts
3. Regular backups (tested and isolated)
4. Endpoint protection (EDR if possible)
5. Network segmentation
6. Security awareness training

Q: What’s the most common entry point for attacks? A: Email (91% of attacks). Phishing emails are the #1 attack vector because:

• They’re cheap and scalable
• They exploit human psychology
• They bypass technical defenses
• They’re highly effective (5-30% success rate)

Q: Can AI help prevent these attacks? A: Yes, AI-powered security tools can:

• Detect phishing emails with 99.9% accuracy
• Identify anomalous user behavior
• Predict attack patterns
• Automate threat response
• However, AI is also used by attackers to create more convincing phishing

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People Also Ask: SEO Entity Snippets

Q: How long does a ransomware attack take? A: Average dwell time is 2-6 months before encryption. Attackers spend 60-180 days mapping networks, stealing data, and disabling security before deploying ransomware. The attack we dissected took 180 days from initial compromise to encryption.

Q: What is the most common way hackers get into systems? A: Email phishing is the #1 entry point (91% of attacks). A single malicious email link or attachment can compromise an entire organization. Learn more about how phishing attacks work and how hackers breach systems.

Q: How do cyber attacks start? A: 91% of cyber attacks start with a phishing email. Attackers send malicious emails that trick employees into clicking links or opening attachments, which installs malware and begins the attack chain. Understanding cybersecurity basics helps prevent these attacks.

Q: What happens during a ransomware attack? A: Ransomware attacks follow 7 phases: (1) Initial compromise via phishing, (2) Malware installation and persistence, (3) Network reconnaissance and lateral movement, (4) Privilege escalation and credential theft, (5) Data exfiltration, (6) Ransomware deployment and encryption, (7) Ransom demand and business disruption.

Q: How can I prevent a cyber attack? A: Implement these fundamentals: email security filtering (blocks 99% of phishing), multi-factor authentication (prevents credential theft), network segmentation (contains breaches), regular backups (recover without paying ransom), and security awareness training. See our complete cybersecurity guide for detailed strategies.

Q: How long do hackers stay in a network? A: Average dwell time is 204 days before detection. Attackers spend 60-180 days mapping networks, stealing credentials, and exfiltrating data before deploying ransomware or other malicious payloads. Most organizations lack security monitoring tools to detect these long-term intrusions.

Q: What is lateral movement in cyber attacks? A: Lateral movement is when attackers move from an initially compromised system to other systems on the network. They use stolen credentials, exploit vulnerabilities, and abuse legitimate tools to access file shares, databases, and critical systems. Network segmentation prevents lateral movement.

Q: How much does a cyber attack cost? A: The average data breach costs $4.45 million globally. Ransomware attacks average $1.85 million in recovery costs, plus ransom payments. The attack we dissected cost $3.075 million total: $500K ransom, $2.1M business interruption, $350K recovery, $125K regulatory fines.

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11. Conclusion: Lessons from the Digital Battlefield

This attack wasn’t sophisticated. It didn’t require zero-day exploits or nation-state resources. It succeeded because of basic security gaps that exist in most organizations:

1. No email security filtering
2. No endpoint detection
3. Weak passwords
4. No network segmentation
5. No security monitoring
6. No incident response plan

The harsh reality: Most cyber attacks succeed not because attackers are geniuses, but because defenders haven’t implemented fundamental security controls.

Your Action Plan

If you’re a business owner:

1. Implement email security (highest ROI security investment)
2. Enable MFA on all critical accounts (free, 5-minute setup)
3. Set up immutable backups (prevents ransomware from encrypting backups)
4. Segment your network (contains breaches)
5. Train employees (monthly phishing simulations)

If you’re an individual:

1. Use a password manager (unique passwords for every account) — see our password security guide
2. Enable 2FA on all accounts — learn why 2FA is essential
3. Be skeptical of emails (verify sender, check URLs) — understand phishing attack methods
4. Keep software updated (patches fix vulnerabilities)
5. Back up your data (3-2-1 backup rule)

The bottom line: Cyber attacks are inevitable, but their impact is not. By implementing layered defenses, you can prevent 99% of attacks and contain the 1% that get through.

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Don’t wait until you’re a victim. The attack we just walked through happens to thousands of companies every year. Start with email security and MFA today—these two changes prevent the majority of attacks.

Download our free “Cyber Attack Prevention Checklist” to get a prioritized, step-by-step worksheet for securing your organization against the attack chain we just dissected.