Ransomware Without Encryption: The Invisible Threat Reshaping Cybersecurity in 2026

The ransomware playbook has fundamentally changed. In 2025, data encryption dropped to just 50% of ransomware attacks - the lowest level in six years. Yet ransom demands continue, victims still pay, and the damage often exceeds traditional encrypted attacks.

Welcome to the era of ransomware without encryption.

The Silent Shift: From Encryption to Pure Exfiltration

Traditional ransomware followed a predictable pattern: infiltrate, encrypt, demand ransom, provide decryption key. The encryption event was loud - files renamed, systems locked, ransom notes displayed prominently.

Modern attackers have discovered something more effective. They quietly steal sensitive data over weeks or months, then extort victims long after the breach. No encryption required.

According to Morphisec's CTO Michael Gorelik, this shift represents one of the most significant changes in the ransomware landscape. "When attackers only exfiltrate data, most organizations can't determine what was stolen - or whether it was stolen at all."

The numbers tell the story. Rapid7's Q2 2025 analysis found data exfiltration present in 74% of extortion campaigns. Meanwhile, Trend Micro warns that cybercriminals increasingly employ data exfiltration attacks without encrypting files at all.

Why Attackers Prefer the Silent Approach

The move away from encryption isn't random. It's strategic. Here's why threat actors are embracing exfiltration-only attacks:

Encryption is noisy. Exfiltration is silent. Traditional ransomware triggers immediate alerts - CPU spikes, file system changes, suspicious process behavior. Data theft using legitimate tools generates minimal noise.

EDR tools struggle with data movement. Modern endpoint detection excels at catching malware execution. It's far weaker at identifying data exfiltration that mimics normal business operations.

Backups don't help. Organizations have gotten better at maintaining offline backups. Restoring encrypted systems is now routine for many IT teams. But backups can't restore leaked data. Once stolen, sensitive information remains a permanent liability.

Victims still pay. Despite not losing access to their systems, organizations face regulatory penalties, reputational damage, and customer lawsuits if stolen data leaks. Coveware data shows 19% of exfiltration-only victims still pay - and attackers only need occasional success for the model to work.

Forensics become nearly impossible. Without an encryption event, there's no clear point of compromise. Logs age out. Cloud storage events blend with normal usage. Victims often cannot prove or disprove what attackers claim to possess.

How Modern Exfiltration Attacks Work

These attacks leverage tools already present in enterprise environments. By abusing legitimate software, attackers avoid triggering security alerts.

Azure Copy Exfiltration

One of the most concerning patterns emerging in late 2025 involves Azure Copy - Microsoft's own data transfer utility. Because many organizations use Azure for backup and storage, data movement to Azure endpoints rarely triggers alerts. Attackers exploit this blind spot to exfiltrate massive datasets that blend with normal cloud operations.

RClone, Mega, and Cloud Sync Tools

Attackers frequently leverage RClone for cloud-to-cloud transfers, MegaNz for direct uploads, Bitbucket repositories for code theft, and custom cloud sync scripts. These tools mimic legitimate backup traffic, making detection extremely difficult without deep network visibility.

Living Off the Land

Modern ransomware relies less on malware and more on abusing tools already installed. Common utilities weaponized for data theft include:

• Advanced IP Scanner for network reconnaissance
• PowerShell for scripting and automation
• RoboCopy for bulk file transfers
• Node.js portable modules for custom exfiltration
• WinSCP and FileZilla for data staging

Because these tools are normal in IT workflows, they blend in perfectly.

Delayed Extortion

Perhaps most insidious: attackers now wait months before contacting victims. This delay ensures forensic logs have aged out, making investigation nearly impossible. Victims receive extortion demands via encrypted email, messaging apps, or even physical mail - long after any evidence of the breach has disappeared.

The Triple Extortion Evolution

The threat continues evolving. Many groups now combine multiple pressure tactics in what security researchers call triple extortion:

1. Data theft - Stealing sensitive information for leverage
2. Encryption - Locking systems when profitable (optional)
3. Public pressure - Harassment campaigns targeting victims' customers, employees, or partners

Some groups contact customers directly, demanding individual payments. Others launch DDoS attacks against victims who refuse to negotiate. The psychological pressure compounds when attackers release stolen data in stages, demonstrating ongoing access.

Groups like NightSpire have been observed evolving from pure exfiltration to double extortion, confirming that while data theft alone creates pressure, combining techniques maximizes leverage.

Why Detection Fails

Traditional security tools weren't designed for this threat model. Here's why exfiltration-only attacks evade detection:

No malware signatures. When attackers use legitimate tools, there's no malicious code to detect.

No behavioral anomalies. Data transfer to cloud services is normal business activity. Without context about what data should or shouldn't move, security tools can't distinguish theft from backup.

No encryption events. File system monitors watch for mass file modifications. Pure exfiltration leaves files unchanged.

No CPU spikes. Encryption is computationally intensive. Data copying is not.

Blended with normal traffic. Using Azure, AWS, or Google Cloud for exfiltration means traffic goes to legitimate, trusted endpoints.

As Gorelik notes: "You cannot detect what blends in with normal behavior."

The Regulatory Nightmare

Compliance frameworks don't distinguish between encrypted and stolen data. HIPAA, GDPR, PCI-DSS, and SEC cyber rules all require breach notification when sensitive data is accessed - regardless of whether encryption occurred.

This creates impossible situations. Organizations may be legally required to report breaches they cannot verify. Attackers exploit this uncertainty, sometimes launching fake exfiltration campaigns knowing victims can't disprove their claims.

IBM's 2025 research found the average cost of an extortion incident reached $5.08 million when disclosed by an attacker. Reputation damage, legal exposure, and regulatory fines compound direct costs.

Defense Strategies for 2026

Protecting against invisible threats requires fundamental changes in security posture.

Shift from detection to prevention. If attackers blend in with normal behavior, detection will always lag. Focus on preventing initial compromise through identity hardening, MFA everywhere, and zero-trust architecture.

Increase outbound visibility. Most organizations monitor inbound traffic carefully while ignoring outbound flows. Implement deep packet inspection for data leaving your environment, especially to cloud services.

Monitor identity, not just endpoints. Exfiltration attacks often start with a single compromised account. Continuous identity verification and anomaly detection catch attackers pivoting through legitimate credentials.

Protect non-agent assets. NAS appliances, backup servers, gateways, and network storage rarely run security agents. These unmonitored systems are prime exfiltration points.

Validate claims before negotiating. Attackers increasingly bluff about what they possess. Incident response teams should confirm evidence before entering ransom negotiations.

Test backup and recovery independently. Ransomware resilience isn't just about restoring encrypted systems. Practice responding to pure data theft scenarios where restoration doesn't solve the problem.

Implement data classification. You can't protect what you don't understand. Classify sensitive data, monitor its movement, and alert on unusual access patterns.

The 2026 Outlook

Security experts predict several concerning trends for the coming year.

AI-driven exfiltration is accelerating dramatically. Commvault research found AI-powered ransomware achieved full data exfiltration 100 times faster than human attackers in controlled testing. Agentic AI can reason, plan, and adapt attacks in real time.

Supply chain attacks will multiply the impact of single compromises. Rather than targeting one victim, attackers increasingly breach shared service providers to access hundreds of downstream organizations simultaneously.

Deepfake-enabled extortion adds new pressure tactics. Attackers may threaten to release fabricated compromising content alongside real stolen data, making threats harder to dismiss.

Psychological ransomware targeting trust itself - rather than just technology - represents the next frontier.

Conclusion

Encryption was never the core of ransomware. Extortion was. Modern attackers have simply realized they don't need to lock your systems to hold your business hostage.

The organizations that survive this evolution will be those that stop relying on detecting obvious attacks and instead build resilience against threats designed to be invisible. That means preventing initial compromise, monitoring data movement, validating identity continuously, and preparing for scenarios where knowing what was stolen proves impossible.

Ransomware hasn't disappeared. It's evolved into something harder to see, harder to stop, and harder to recover from. The question isn't whether your organization will face this threat - it's whether you'll recognize it when it happens.