What should MSPs do first after a ransomware breach?

You’ve just discovered a ransomware incident. Move fast: contain the threat, preserve evidence, notify affected parties, and start recovery using tested procedures.

How can you tell if ransomware is running?

Look for sudden file encryption, odd file extensions, or ransom notes—these are the clearest signs. Unusual outbound traffic, spikes in CPU or disk usage, and file timestamps that change without user action are other strong indicators. Monitoring tools and endpoint detection can alert you to these behaviors quickly. Early detection narrows the window attackers have to spread. Document every sign for incident records and future analysis.

Should you pay the ransom?

No—paying usually doesn’t guarantee recovery and fuels future attacks. Attackers may still withhold decryption keys or sell stolen data even after payment. Recovery costs far exceed typical ransom demands; in 2023 average recovery cost was reported in the millions. Instead, focus on containment, backups, negotiation through law enforcement if needed, and legal/compliance steps. Use a controlled recovery plan combined with forensic investigation.

What’s the first action MSPs should take on detection?

Immediately preserve evidence and capture a clear screenshot of any ransom message. This proof helps with investigations and insurance claims and supports law enforcement reporting. Next, lock down affected endpoints to prevent lateral movement—disable network access and disconnect external storage. Log all activity and note the time of discovery and initial indicators. Evidence preservation should not interrupt containment but must happen early.

How do you activate an incident response plan?

Activate your predefined incident response playbook and assemble the response team right away. Assign roles: who communicates with clients, who manages containment, who handles forensics, and who liaises with legal or regulators. Use a severity matrix to classify the event and prioritize tasks. If you lack an internal plan, escalate to a senior security partner or Palisade for coordinated support. Clear roles and checklists reduce confusion under pressure.

How should affected systems be isolated?

Disconnect compromised devices from the network and remove external drives immediately. Disable VPNs and block suspicious IP addresses or domains at the firewall. Preserve a snapshot of affected systems for forensic analysis before wiping or restoring. Segmentation and strict access controls prevent the malware from jumping to other clients or services. Keep a controlled list of quarantined machines and the actions taken on each.

When and how do you notify clients?

Notify clients promptly and transparently once you have initial facts and a containment plan. Explain what you know, what you’re doing, and the expected next steps—clients value clarity over silence. Provide regular status updates and a point of contact for questions. Include legal, compliance, and data-privacy considerations in your communication, as some jurisdictions require timely breach notification. Keep messages factual and avoid speculation.

What role does forensic investigation play?

Forensics identifies the root cause, scope of compromise, and attacker methods—so start it early. A forensic team preserves volatile data, traces the initial access point, and helps decide whether systems can be safely restored. Their findings guide remediation, patching, and legal responses. Save forensic artifacts and chain-of-custody records for regulators and insurers. Forensic results also inform improvements to your security posture.

How do you recover systems safely?

Recover from verified clean backups and rebuild systems from trusted images whenever possible. Don’t reconnect restored systems until they’ve been scanned and validated by security tools. Change credentials and rotate keys used by affected systems before going back online. Apply patches, tighten configurations, and monitor restored systems closely for signs of reinfection. Document the recovery process for lessons learned and compliance audits.

What about legal, compliance, and insurance?

Engage legal counsel and your cyber insurer early to handle regulatory notifications and coverage questions. Different industries and regions have specific timelines for mandatory breach reporting—missing them can mean penalties. Preserve evidence and keep detailed logs to support claims and regulatory responses. Coordinate with law enforcement for potential criminal investigation. Insurance can help cover recovery costs but requires prompt and accurate documentation.

How do you prevent repeat attacks?

Apply lessons from the incident: patch vulnerabilities, enforce MFA, and improve monitoring across endpoints and networks. Harden backups by keeping them immutable or air-gapped and test restores regularly. Train staff on phishing and secure remote access practices. Implement strict least-privilege access controls and network segmentation to reduce blast radius. Regular tabletop exercises and updated playbooks keep your team ready for future incidents.

Where can MSPs get help during an attack?

Turn to trusted security partners and Palisade for incident response support and tools if you need outside expertise. Rapid coordination with specialists speeds containment and recovery, especially when in-house resources are limited. Palisade offers resources to help MSPs assess, contain, and remediate ransomware incidents. Maintain a list of vetted partners before an incident occurs to avoid delays. Quick access to experts reduces downtime and risk.

How should you document the incident after closure?

Create a post-incident report that summarizes the timeline, root cause, containment steps, recovery actions, and lessons learned. Include evidence, forensic findings, communications, and remediation tasks that were completed. Use the report to update your incident response plan and share improvements with clients. Track metrics like downtime, data loss, and costs to evaluate the impact. Regular reviews make your defenses stronger over time.

Quick Takeaways

• Contain first: isolate affected devices and networks immediately.
• Preserve evidence: screenshots and system snapshots aid forensics and claims.
• Don’t pay as a first option—focus on recovery from backups and legal routes.
• Communicate transparently with clients and regulators as required.
• Leverage partners like Palisade for incident response and remediation support.
• Improve defenses after the incident: patching, MFA, backups, and training.

Frequently Asked Questions

1. How quickly should I isolate devices?

Isolate them immediately upon detection to stop lateral movement; every minute matters. Disconnect network interfaces and remove external media while preserving volatile evidence where possible. Notify your response team and record the actions taken and their timestamps. Rapid isolation limits the scope and simplifies recovery efforts. Follow your playbook to maintain order during this step.

2. Can forensic work and containment happen at the same time?

Yes—containment and forensic collection should run in parallel with clear coordination. Forensics needs preserved artifacts, so plan containment steps to avoid destroying evidence. Assign teams with defined roles to avoid conflicts and ensure the investigation can proceed. Proper coordination accelerates root-cause identification without compromising containment. Use documented checklists to guide concurrent actions.

3. Will insurance cover ransomware recovery?

Many cyber insurance policies offer coverage, but terms and requirements vary widely. Prompt reporting, thorough documentation, and compliance with policy conditions are essential to make a successful claim. Insurers may require forensic reports and evidence of mitigation efforts. Consult your broker and counsel immediately after discovery to understand coverage limits and obligations. Insurance often offsets but does not eliminate all recovery costs.

4. How do I test if a backup is safe to restore?

Verify backups by restoring to an isolated environment and scanning for residual malware. Test multiple restore points and validate data integrity before reconnecting restored systems to production. Keep backups immutable or off-network to reduce the chance of compromise. Maintain a documented backup testing schedule and record results. Regular testing ensures recovery reliability when a breach occurs.

5. What should be included in client communications?

Provide clear facts: what happened, which systems are affected, what you’ve done, and the next steps. Include expected timelines, contact points, and any immediate actions clients should take (like password resets). Be transparent about regulatory reporting obligations and how you’re handling data privacy. Offer regular updates even if there’s no new information to reassure stakeholders. Keep messages concise and factual to avoid confusion.

For hands-on support and response tools, visit Palisade’s resources for MSPs: Palisade incident response and recovery resources.