Polycab Ransomware Attack 2023: A Case Study in Fraud Detection and Reporting

Polycab is one of the leading brands in India that is in the business of making electrical cables and wires. In the year 2023, this company faced a ransomware attack that disturbed the activities of it. The organization was left defenseless against cybercriminals aiming to profit from its downfall. This case study provides details on how fraud is detected, reporting of it and recovery of the fraud.

The Build-Up: Polycab and Cybersecurity

Polycab is huge. We’re talking massive scale—serving industries from power to construction, and with a reputation to uphold. Naturally, this made Polycab an attractive target for hackers. In 2023, with ransomware attacks on the rise in India, Polycab became one of the latest victims. Cybercrime was on the up in the country, and according to CERT-In, there had been a 25% increase in ransomware cases that year. Polycab was one of the companies that got caught in the web.

The attackers didn’t just want a quick fix. They went after Polycab’s financial systems, critical data, and everything that could bring the company to a halt. They encrypted files, locked out employees, and demanded a hefty ransom in exchange for unlocking the data. But Polycab wasn’t about to roll over.

The First Sign: How Polycab Noticed the Attack

Polycab’s IT team saw it coming—not the whole thing, but enough to get alarm bells ringing. Everything started to slow down. Systems were acting up, files weren’t opening properly, and devices were becoming sluggish. This wasn’t your typical glitch. Something was wrong.

By the time the IT team realized they were under attack, it was too late to stop the encryption in full swing, but they acted fast. They cut off the affected systems from the network to stop the malware from spreading. Their fraud detection systems, based on real-time monitoring and AI, had already flagged suspicious activity. Polycab’s monitoring systems were always on the lookout for strange movements on the network, and when unusual file accesses and random spikes in data were spotted, they knew something was off.

The Tech Behind the Detection

How, therefore, did Polycab discover the attack so fast? Luck wasn’t the only factor. The business had many defenses in place:

AI-Powered Monitoring: Polycab’s AI-driven tools weren’t just watching over the network; they were learning. The system looked for odd patterns—like strange file access, sudden spikes in traffic, or new users logging in. As soon as anything abnormal happened, the AI flagged it for review.

Endpoint Detection: Every single device connected to the network was monitored. Whether it was an employee’s laptop or a server, each was under the watchful eye of Polycab’s endpoint detection system, which was built to spot ransomware early. As soon as any encryption attempts began, the system reacted by quarantining the device and cutting it off from the network.

Backups and Redundancy: Backups aren’t reserved for the risk-averse; they are essential during a ransomware attack. Because of the solid backup system, critical information was always safeguarded and stored across different sites. Thus, when things went wrong, they could retrieve files and get systems operational again faster.

Threat Intelligence: Polycab wasn’t flying blind. The company subscribed to threat intelligence feeds that kept them updated on the latest cyber threats. When their system detected something unfamiliar, it had the advantage of knowing what kind of ransomware was involved, and how to deal with it.

How They Handled the Attack

Despite the seriousness of the attack, Polycab remained calm. As soon as their incident response strategy went into action, the appropriate individuals were on board. This is what took place:

Containment: First, the infected systems were isolated. It was like putting a quarantine sign on a room to stop the spread. The quicker they did this, the less damage was done. This quick thinking prevented the malware from infecting the whole network.

External Help: Polycab didn’t try to go it alone. They brought in cybersecurity experts—external consultants with experience in ransomware attacks. These professionals helped analyze the situation, figure out what kind of ransomware was used, and guide the recovery process.

Forensic Investigation: They didn’t just stop at stopping the attack. Polycab dug deeper to understand how it happened, what vulnerabilities were exploited, and how far the attackers had gotten. This forensic investigation helped pinpoint where things went wrong, and ensured they could prevent the same thing from happening again.

Data Recovery: While some files were restored from backups, others were encrypted beyond repair. Fortunately, external cybersecurity consultants had the tools to decrypt a portion of the remaining data. It wasn’t a perfect recovery, but it kept the company from losing everything.

Payment? No Way: Despite the pressure, Polycab did not pay the ransom. Instead, they worked with their partners, law enforcement, and cybersecurity firms to recover as much as they could. Paying a ransom doesn’t guarantee the recovery of data, and Polycab knew it would only fund more criminal activity. The company held firm.

Reporting the Fraud: Legal and Compliance

Polycab wasn’t going to be silent about this. They informed the Indian government’s cybersecurity agency, CERT-In, about the hack. In addition to being required by law, this was a wise decision. By reporting the incident, the national cybersecurity framework was certain to include it. Additionally, it made it possible for them to collaborate with local law enforcement to find the hackers and safeguard other members of the sector.

By complying with legal guidelines and collaborating with authorities, Polycab showed how businesses should handle cyber incidents in line with India’s laws and regulations.

Outcome and Lessons Learned

Polycab was affected by the ransomware assault, however they were not destroyed. A strong fraud detection system, a well-prepared reaction team, and the lessons learnt allowed the firm to swiftly recover from the INR 30–40 million loss. The main conclusions are as follows:

Real-Time Detection is Key: The assault may have been even worse if Polycab hadn’t implemented AI tools and real-time monitoring. Early danger detection was essential.

Backups Save the Day: Regular backups are essential. They helped Polycab restore data faster and limited the damage done by the ransomware.

Don’t Panic, collaborate: Polycab demonstrated that you don’t have to face challenges alone. When it comes to dealing with these kinds of assaults, bringing in professionals, interacting with authorities, and working with outside partners may make a big impact.

Stay Strong, Don’t Pay the Ransom: Paying the ransom doesn’t guarantee anything. Polycab’s refusal to pay helped prevent further criminal activities.

Questions to Understand your ability

Q1.) Why did Polycab catch the eye of cybercriminals in 2023?

a) Their weak cybersecurity practices

b) They were a huge target due to their market dominance in the electrical sector

c) They didn’t manage customer data well

d) They launched a new product that wasn’t secure

Q2.) What tipped off Polycab’s IT team that they were dealing with a ransomware attack?

a) Their systems crashed all at once

b) Customers reported issues with their orders

c) Systems were slow, files went missing, and nothing seemed right

d) Their website was breached

Q3.) What tech was Polycab using to sniff out odd behavior in its network before things got worse?

a) Regular antivirus software

b) AI-powered, real-time monitoring that flagged suspicious activity

c) Manual surveillance by employees

d) Just cloud backups to play it safe

Q4.) What did Polycab decide to do when the hackers demanded ransom?

a) They handed over the money to end the issue

b) They tried to haggle the hackers down to a smaller amount

c) They outright refused to pay and took a stand

d) They got their customers involved in the decision-making

Q5.) After the attack, which authority did Polycab alert to handle the aftermath of the ransomware attack?

a) MeitY, the Ministry of Electronics and Information Technology

b) The Cyber Crime Division of local police

c) The CBI, Central Bureau of Investigation

d) The RBI, Indian Reserve Bank

Conclusion

The Polycab ransomware attack of 2023 Demonstrates the need for contemporary businesses to prepare for cyber risks. The presence of right fraud detection systems, rapid response strategies, and regulatory reporting Polycab emerged from the assault with more strength. This serves as a reminder to all businesses that cybercrime is here to stay and that you must be ready. Learning from these occurrences and bolstering your defenses may make all the difference, regardless of how big your company is—from startups to giants like Polycab.