Ransomware Attacks

Small businesses are a prime target for hackers looking to exploit vulnerabilities. One of the most destructive forms of cyber threats is ransomware attacks. These attacks lead to severe consequences for small businesses by jeopardizing their finances, customer trust, and reputation. Small businesses must prioritize cybersecurity to safeguard their data and protect their operations.

What is Ransomware?

Ransomware is a type of malicious software, also known as malware, that hackers use to take control of computers or files. It encrypts valuable data and makes it inaccessible or unreadable to you. The hackers then ask for a ransom to receive the files back. Recent statistics found of all global ransomware victims, 32% paid the ransom, but only 65% of them actually received their data back.

How Can You Get Ransomware?

Ransomware is used by hackers who want to extort money from small business owners. It’s typically seen in the form of infected emails, malicious websites, or through security vulnerabilities in software.

Types of Ransomwares

1. Crypto Ransomware: takes important files hostage by encrypting them, making them unusable and unreadable until the victim pays through cryptocurrencies making it nearly impossible to track where the money is going. It is often distributed under the ransomware-as-a-service model.
2. Locker Ransomware: locks victims out of their user files, preventing them from accessing files or applications until the ransom is paid.
3. Master Boot Record (MBR) Ransomware: targets the startup component of the computer and prevents the computer from booting up properly, leaving the victim with their operating system in an unbootable state unless the ransom is paid.
4. Mobile Ransomware: specifically targets mobile devices by infecting them through malicious apps, compromised websites, or emails and steals sensitive data or locks the device until you pay ransom for control back.
5. Doxware: also known as leakware or extortionware, not only encrypts files but also threatens to release sensitive or confidential information unless the ransom is paid

Ransomware Threats on Small Businesses

• Financial Loss: The cost of paying the ransom alone can be substantial and added with the expenses of installing better security systems can cause some businesses to shut down due to the financial burden.
• Disrupt in Operation Most businesses rely heavily on computers for their day-to-day operations so a ransomware attack can fully halt all productivity.
• Reputation Damage/Lose Customer Trust: News of a security breach and leaked customer information can spread quickly and damage the trust existing or potential customers had in the business.
• Psychological & Emotional Stress: Ransomware attacks can have a profound psychological and emotional impact on small business owners and their employees. The sense of violation and helplessness can lead to stress, anxiety, and a hostile work environment.

Understanding the different types of ransomware and their threats is essential for businesses looking to improve their cybersecurity. Businesses can protect themselves by doing regular backups, updating security software, and providing employees with awareness training. Find our full checklist of measures you can take to protect your data.