Kaspersky Report: Ransomware Landscape Shifts to Post-Quantum Encryption, Data Leak Extortion, and EDR Evasion

Ransomware Evolves in 2026: Attackers Adopt Post-Quantum Crypto and Encryptionless Extortion

HIGH
May 12, 2026
May 25, 2026
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RansomwareThreat IntelligenceThreat Actor

Related Entities(initial)

Threat Actors

Initial Access Brokers (IABs)ShinyHunters

Organizations

Kaspersky

Products & Tech

Remote Desktop Protocol (RDP)VPN

Full Report(when first published)

Executive Summary

On International Anti-Ransomware Day, Kaspersky released its annual report on the ransomware threat landscape, highlighting profound tactical evolutions in 2026. While the overall percentage of organizations impacted by ransomware saw a slight decline in 2025, the nature of the threat has become more sophisticated and dangerous. The report identifies three key trends: the adoption of post-quantum cryptography by advanced groups to ensure long-term data decryption impossibility; a significant shift towards 'encryptionless extortion' where data theft and public leakage is the sole threat; and the methodical, widespread use of tools and techniques like 'EDR killers' and Bring Your Own Vulnerable Driver (BYOVD) to disable security measures before payload deployment.

Threat Overview

The 2026 ransomware ecosystem is characterized by adaptation and specialization. Threat actors are not just encrypting data; they are building multi-faceted extortion schemes.

  1. Post-Quantum Cryptography (PQC): For the first time, ransomware families have been observed in the wild using quantum-resistant encryption algorithms. This is a forward-looking strategy. Attackers are encrypting data today knowing that even if victims back it up, the data will remain securely encrypted against future quantum computers, making the extortion demand perpetually relevant.

  2. Encryptionless Extortion: Groups like ShinyHunters are pioneering a model that bypasses the encryption step altogether. They gain access, exfiltrate sensitive data, and then threaten to leak it publicly. This approach is faster, stealthier (as it avoids noisy encryption processes that might trigger alerts), and removes the need for the attackers to maintain complex and potentially buggy encryption software.

  3. Systematic Evasion: The neutralization of endpoint security is no longer an opportunistic step but a core, planned phase of the attack. Ransomware operators are heavily utilizing 'EDR killers' (tools designed to terminate security agent processes) and BYOVD techniques. The BYOVD method involves using a legitimate, signed (but vulnerable) driver to execute malicious code with kernel-level privileges, effectively blinding EDR and antivirus solutions.

  4. Initial Access: The reliance on Initial Access Brokers (IABs) remains strong. IABs continue to sell access to corporate networks, with compromised Remote Desktop Protocol (RDP), VPNs, and especially RDWeb being the most common entry points.

Technical Analysis

Post-Quantum Cryptography

  • Implementation: Involves using algorithms like CRYSTALS-Kyber (for key exchange) and CRYSTALS-Dilithium (for digital signatures), which are standardized by NIST.
  • Impact: Makes encrypted data theoretically immune to decryption by future quantum computers, increasing the long-term leverage of the extortion.

BYOVD (Bring Your Own Vulnerable Driver)

  • Process:
    1. Attacker gains initial access and elevates privileges to administrator.
    2. Attacker drops a known-vulnerable but legitimately signed driver (e.g., from a hardware vendor) onto the system.
    3. The attacker loads this driver into the kernel.
    4. They exploit the vulnerability in the driver to run their own malicious code with kernel-level permissions.
    5. This kernel-level code is then used to terminate security processes (e.g., MsMpEng.exe, SentinelAgent.exe) in a way that the EDR cannot protect itself.

MITRE ATT&CK Techniques

Impact Assessment

These evolving tactics have significant implications for organizations:

  • Future-Proofed Extortion: Data encrypted with PQC may be permanently lost if the key is not paid for, as future technological advances won't be able to break it.
  • Increased Reputational Damage: The shift to encryptionless extortion makes every ransomware attack a data breach by default. The primary impact shifts from operational downtime to severe reputational damage, regulatory fines (GDPR, HIPAA), and loss of customer trust.
  • Evasion of Modern Defenses: The systematic targeting of EDR solutions means that organizations relying solely on endpoint protection are increasingly blind to the most critical stages of a ransomware attack.

IOCs — Directly from Articles

No specific Indicators of Compromise were provided in the source articles.

Cyber Observables — Hunting Hints

Security teams may want to hunt for the following patterns related to these new trends:

  • Driver Loading: Monitor for the loading of unusual or known-vulnerable drivers. Track driver load events (e.g., Windows Event ID 7045) and correlate them with process termination events for security agents.
  • Data Staging: For encryptionless extortion, hunt for large-scale data aggregation. Look for the creation of large archive files (.zip, .rar, .7z) on servers or workstations, followed by large outbound data transfers to cloud storage or unfamiliar IP addresses.
  • Security Service Tampering: Create alerts for the termination or modification of critical security services and processes. Any attempt to stop an EDR agent should be a high-priority alert.

Detection & Response

  • Detection:

    • Tamper Protection: Ensure that all endpoint security solutions have tamper protection enabled and monitored. This is a critical feature to defend against 'EDR killers'.
    • Driver Control: Use application control policies to restrict the loading of all but a pre-approved list of drivers. This is a core principle of D3FEND Driver Load Integrity Checking (D3-DLIC).
    • Data Loss Prevention (DLP): Deploy and tune DLP solutions to detect and block the unauthorized exfiltration of large volumes of sensitive data.
  • Response:

    • If EDR tampering is detected, assume the host is fully compromised and move to isolate it from the network immediately.
    • In an encryptionless extortion scenario, the response plan must pivot from data recovery to crisis communication, legal counsel engagement, and regulatory notification.

Mitigation

  • Backup and Recovery: While less effective against encryptionless extortion, immutable, offline backups remain the single most important defense against data encryption attacks.
  • Harden Access Vectors: Aggressively patch VPNs and other edge devices. Enforce strong, phishing-resistant MFA on all external access points, especially RDP and RDWeb. This aligns with D3FEND Multi-factor Authentication (D3-MFA).
  • Kernel Protection: Enable virtualization-based security (VBS) and Hypervisor-Protected Code Integrity (HVCI) on Windows systems to protect the kernel from malicious code injection via vulnerable drivers.
  • Network Segmentation: Segment networks to prevent attackers from moving laterally after gaining initial access. This can contain the blast radius of an attack and hinder data exfiltration from sensitive data stores.

Timeline of Events

1
May 12, 2026
Kaspersky releases its annual ransomware report on International Anti-Ransomware Day.
2
May 12, 2026
This article was published

Article Updates

May 25, 2026

Severity increased

Ransomware groups are pivoting to 'pure extortion' (data theft without encryption) due to a sharp decline in victim payment rates, now at 28%.

New reports confirm a strategic shift among ransomware groups towards 'pure extortion,' focusing solely on data theft and public leaks. This pivot is driven by a significant drop in ransom payment rates, from 76% in 2019 to just 28% today, as organizations improve backup and recovery capabilities. This evolution makes detection harder, as the focus shifts from noisy encryption to stealthier data exfiltration, and the damage from stolen data is permanent, unlike recoverable encrypted systems. Incident response now emphasizes damage control and managing public fallout.

Timeline of Events

1
May 12, 2026

Kaspersky releases its annual ransomware report on International Anti-Ransomware Day.

Article Author

Jason Gomes

Jason Gomes

• Cybersecurity Practitioner

Cybersecurity professional with over 10 years of specialized experience in security operations, threat intelligence, incident response, and security automation. Expertise spans SOAR/XSOAR orchestration, threat intelligence platforms, SIEM/UEBA analytics, and building cyber fusion centers. Background includes technical enablement, solution architecture for enterprise and government clients, and implementing security automation workflows across IR, TIP, and SOC use cases.

Threat Intelligence & AnalysisSecurity Orchestration (SOAR/XSOAR)Incident Response & Digital ForensicsSecurity Operations Center (SOC)SIEM & Security AnalyticsCyber Fusion & Threat SharingSecurity Automation & IntegrationManaged Detection & Response (MDR)

Tags

BYOVDEDR EvasionEncryptionless ExtortionKasperskyPQCPost-Quantum CryptographyRansomwareShinyHunters

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