In 1989, during the World Health Organization’s AIDS conference, the world witnessed the debut of the first ransomware virus. This type of malicious software is designed to lock users out of their own files until they comply with certain demands.
This inaugural ransomware, known today as the PC Cyborg virus or the AIDS Trojan, was distributed to a mailing list of 20,000 doctors, AIDS researchers, and educational institutions. These unsuspecting recipients were sent a floppy disk that claimed to contain a survey tool for assessing AIDS patients and educational resources. However, instead of surveys and resources, the disk delivered malware that encrypted the computer's files, with a demand for a $189 payment to the so-called PC Cyborg Corporation in exchange for their restoration.
The PC Cyborg Corporation was, in reality, the creation of a single individual—Joseph Popp, now recognized as the father of ransomware. Popp, an evolutionary biologist with a grievance, reportedly unleashed the AIDS Trojan as an act of revenge after being denied a position at the World Health Organization.
The doctors and researchers who fell victim to the virus were largely unfamiliar with computers, and the AIDS Trojan’s scare tactics—flashing screens, alarming colors, and ominous messages like “Catastrophic System Error”—induced panic. Many either complied with the demands or, in their fear, deleted critical files, losing years of valuable research data.
Although the virus was relatively unsophisticated and had limited impact, it was one of the first to use Trojan horse techniques combined with ransomware. Its effectiveness was undermined by the clumsy demands, which required victims to send a physical check to a P.O. Box in Panama.
The program's language was confusing, and its encryption methods were rudimentary, but the AIDS Trojan employed some cunning strategies, such as a delayed activation and psychological manipulation, to exploit a population with limited computer knowledge. By 1990, tools were released to decrypt the infected files and neutralize the virus, rendering it a short-lived threat. However, the tactics introduced by the AIDS Trojan laid the groundwork for future ransomware.
Today, ransomware has evolved into a highly sophisticated and lucrative form of cybercrime, with annual attacks generating over $1 billion in revenue. The average ransomware demand exceeds $1 million, making it one of the most expensive forms of cyber fraud. Through robust cybersecurity measures and proper fraud prevention training, businesses can protect themselves against these pervasive threats.
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