What is ransomware
Ransomware is a type of malicious software (malware) that encrypts your data or blocks access to computer systems. Attackers then demand a ransom to restore access. For small and medium-sized businesses (SMBs), it is one of the biggest cybersecurity threats because a single incident can halt operations and cause significant financial loss.
In this article, you will learn what ransomware is and how to protect your small or medium-sized business from it.
How does ransomware work?
- It spreads via phishing emails, infected attachments, or malicious links.
- Attackers may exploit weak passwords or unpatched software.
- After infection, files are encrypted and a ransom note appears demanding payment.
- Attackers may use “double extortion” – in addition to encryption, they threaten to leak sensitive data.
Why are SMBs frequent targets?
- SMBs often have limited IT resources and lack dedicated cybersecurity staff.
- They may have weak or incomplete backup practices.
- Employees may not be adequately trained to spot phishing and social engineering.
- Smaller businesses often believe they are not attractive targets — the opposite is true.
How can SMBs protect against ransomware?
- Back up data regularly — use the 3-2-1 rule (3 copies, 2 different media, 1 offline/offsite).
- Keep software and systems up to date — security patches reduce the attack surface.
- Use multi-factor authentication (MFA) for system and account access.
- Train employees — teach them to recognize phishing emails and suspicious links.
- Limit user privileges — follow the principle of least privilege.
- Use reputable antivirus/anti-malware with up-to-date threat definitions.
- Have an incident response plan — knowing what to do is critical.
What to do during an attack (first 24 hours)
- Isolate affected devices from the network.
- Do not engage with attackers and do not pay the ransom — there is no guarantee you will get your data back.
- Contact IT/security professionals and inform company leadership.
- Verify backups and prepare for system restoration.
- Report the incident to appropriate authorities (e.g., in the U.S., FBI and CISA).
Recovery and long-term strategy
- Restore systems from clean, verified backups.
- Conduct a security assessment to identify the initial access vector.
- Update processes and security controls to prevent recurrence.
- Regularly test business continuity and disaster recovery plans.
- Consider cyber insurance as a supplemental safeguard.
FAQ: Most common ransomware questions we hear from small and mid-sized businesses (SMBs)
- How much does a ransomware attack cost? Average total costs often reach hundreds of thousands of dollars—this includes the ransom demand, downtime, lost revenue and reputation, incident response, and recovery.
- Can cyber insurance help me? Yes, but it’s not a substitute for prevention. Insurers typically require baseline security controls (e.g., MFA, patching, backups) to qualify for coverage and to pay claims.
- How common are ransomware attacks on SMBs? Very common—attackers frequently target SMBs because they often have fewer resources and weaker defenses than large enterprises.
- Should we pay the ransom? Generally no. There’s no guarantee you’ll get your data back, and paying encourages further attacks and may carry legal or regulatory risks.
- What’s the best protection? A layered approach: regular, tested offline/cloud backups; employee security awareness training; timely patching and updates; multi-factor authentication (MFA); endpoint protection and email security; and an incident response plan.
Summary
Ransomware is a real and growing threat for small and midsize businesses (SMBs). While you can’t eliminate risk completely, strong prevention, reliable backups, and a clear incident response plan can significantly reduce the impact of an attack. For SMBs, it’s critical to understand that proactive security is always cheaper than dealing with the aftermath.