What type of malware is characterized by encrypting files and demanding ransom for decryption?

Ransomware is a type of malware specifically designed to encrypt files on a victim's system, making them inaccessible. The attackers then demand a ransom payment from the victim in exchange for the decryption key needed to restore access to those files. This form of cyberattack has become increasingly prevalent, targeting individuals, companies, and institutions alike.

In contrast to other types of malware, such as spyware, which is focused on stealthily gathering information without the user's knowledge, or worms, which propagate across networks without requiring user intervention, ransomware's primary goal is financial gain through extortion. Adware, on the other hand, primarily focuses on displaying unwanted advertisements, often leading to a diminished user experience rather than outright file encryption. Thus, the defining characteristic of ransomware is its ability to lock users out of their own data and leverage that situation for financial profit.