What is Ransomware?

What Is Ransomware and How Can You Defend Against It?

Ransomware is a word no business wants to hear. It’s a type of malicious software designed to block access to your data until a ransom is paid. If you’re wondering how big of a deal this is, you’re not alone. Ransomware attacks have increased by 93% in the last two years according to a report from Cybersecurity Ventures .

Here’s the breakdown: A hacker gains access to your systems, locks you out, and demands payment—often in cryptocurrency—in exchange for a key to unlock your data. Businesses of all sizes, from small startups to global enterprises, are targets. And the ransom demand can range anywhere from a few hundred to millions of dollars, not to mention the cost of downtime and lost productivity.

How Ransomware Works

Ransomware typically enters your system through phishing emails, compromised websites, or by exploiting vulnerabilities in outdated software. Once the malware is inside, it encrypts your files, making them inaccessible. You’ll receive a ransom note demanding payment in exchange for a decryption key.

Paying the ransom doesn’t guarantee your data will be restored. According to Sophos’ State of Ransomware 2022, only 8% of businesses that paid the ransom got all their data back . This means prevention and backup strategies are key.

Why Are SMBs Especially Vulnerable?

You might think ransomware only hits large corporations, but small and medium-sized businesses (SMBs) are prime targets. Why? Because SMBs often have less robust cybersecurity defenses, making them easier to infiltrate. According to Verizon’s 2023 Data Breach Investigations Report, 61% of ransomware victims are small businesses .

How Can Your Business Defend Against Ransomware?

There are several key strategies your business can use to reduce the risk of a ransomware attack:

1. Regular Backups: Ensure you regularly back up critical data and store it offsite. This way, if ransomware locks your files, you can restore them without paying the ransom.
2. Security Awareness Training: Educate your employees about phishing attacks and the importance of avoiding suspicious emails and links. Since email is the most common delivery method for ransomware, training your team is a simple yet effective defense.
3. Advanced Security Solutions: Use advanced security solutions like Managed Detection and Response (MDR) and Continuous Vulnerability Monitoring to detect ransomware before it wreaks havoc.
4. Multi-Factor Authentication (MFA): Enable MFA wherever possible to add an extra layer of security. Even if attackers steal your password, they’ll still need a second form of verification to access your systems.
5. Patching and Updates: Keep your software and systems up to date. Cybercriminals often exploit outdated software vulnerabilities to gain access to your network.

The Cost of Ransomware

Ransomware isn’t just about the ransom payment—it’s about the total cost to your business. The average ransomware attack costs businesses $1.85 million, including downtime, recovery, and lost opportunities . Imagine losing access to your critical files for days or even weeks—it’s a nightmare no business wants to face.