"Sometimes it feels like the ransomware is everywhere" - anonymous small business owner

Ransomware: What Small Business Owners Need to Know

As a small business owner or decision maker for your organization, you face many challenges —building customer trust, managing cash flow, and staying ahead of the competition. Unfortunately, in today’s digital world, there’s another threat that has become increasingly dangerous for small businesses: ransomware. While large corporations often make the headlines when they fall victim to cybercrime, small businesses are actually at higher risk. Nearly 43% of cyberattacks target small businesses, and ransomware is one of the most devastating forms of attack.

Ransomware attacks can cripple your operations, cause financial hardship, and damage your reputation. Understanding what ransomware is, how it works, and what warning signs to look out for can be key to keeping your business safe. Here’s what you need to know to protect your business from this growing threat.

What Is Ransomware?

Ransomware is a type of malicious software (malware) designed to encrypt a business's data or lock it out of its systems until a ransom is paid. Attackers often demand payment in cryptocurrency, such as Bitcoin, because it's harder to trace. Once your files are encrypted, the attackers will threaten to keep them locked—or worse, leak them publicly—unless the ransom is paid. Even if you do pay, there’s no guarantee you’ll regain access to your data, which makes prevention and awareness critical.

How Does Ransomware Spread?

Ransomware can infect your business’s systems in various ways, but here are the most common methods:

1. Phishing Emails: Cybercriminals often send out emails that look legitimate but contain malicious links or attachments. When an employee clicks on the link or downloads the attachment, ransomware is installed on the device and spreads through the network.

2. Malicious Websites: Visiting an infected or compromised website can trigger a ransomware attack. These sites might prompt users to download a file or install software updates that are actually malware.

3. Remote Desktop Protocol (RDP) Exploits: Many small businesses use remote access tools like RDP to allow employees to work remotely. However, if these tools are not properly secured, attackers can exploit them to gain access to your system and plant ransomware.

4. Unpatched Software and Systems: Running outdated software or failing to install security patches can leave your business vulnerable to cyberattacks. Hackers exploit known vulnerabilities in outdated systems to deploy ransomware.

Warning Signs of a Ransomware Attack

While ransomware attacks can happen quickly and without much warning, being aware of early signs can help you mitigate the damage. Here are some red flags to watch out for:

1. Unusual Email Requests or Attachments: If you or your employees receive an email from an unfamiliar sender with a suspicious link or attachment, this could be a phishing attempt aimed at delivering ransomware. Even emails that appear to be from trusted sources can be spoofed, so always verify before clicking.

2. Slowed System Performance: If your computer or network suddenly starts running much slower than usual, it could indicate malicious software is at work behind the scenes. Ransomware often consumes system resources as it encrypts files, causing a noticeable slowdown.

3. Inability to Access Files: One of the most obvious signs of a ransomware attack is suddenly being unable to open files, accompanied by strange file extensions or messages stating that your files have been encrypted.

4. Unusual Network Activity: Monitor your network for unexpected spikes in traffic or activity at odd times. Ransomware often tries to spread across a network, and abnormal activity can be a sign of an ongoing attack.

5. Pop-Up Ransom Notes: In the event of a successful ransomware attack, the most telling sign is the appearance of a ransom note demanding payment in exchange for restoring your files. The message will often provide instructions on how to pay, typically using cryptocurrency.

Steps to Protect Your Business from Ransomware

While ransomware attacks can be devastating, the good news is that there are several proactive steps you can take to protect your small business. Here’s what to do to reduce your risk:

1. Regularly Backup Your Data

Backing up your data is one of the most effective ways to protect yourself from ransomware. If your files are encrypted in an attack, having secure, up-to-date backups can allow you to restore your systems without paying the ransom. Make sure your backups are stored offline or in a cloud-based system that is not directly connected to your main network to prevent them from being targeted as well.

2. Keep Software Updated

Ensure all your software, operating systems, and security tools are up to date. Cybercriminals exploit known vulnerabilities in outdated software, so installing the latest security patches and updates as soon as they’re available is crucial to closing those loopholes.

3. Use Strong, Unique Passwords and Enable Multi-Factor Authentication (MFA)

Weak passwords and reused credentials make it easier for hackers to break into your systems. Ensure that you and your employees use strong, unique passwords for each account, and implement multi-factor authentication wherever possible. MFA adds an extra layer of security by requiring a second form of verification, such as a text message code or app-based authentication.

4. Educate and Train Employees

Since phishing emails are a common method of delivery, educate your employees about how to recognize phishing attempts and avoid clicking on suspicious links or downloading unexpected attachments. Regularly train them on cybersecurity best practices and conduct phishing simulations to keep them alert.

5. Install and Maintain Security Software

Having strong antivirus and anti-malware software in place can help detect and block ransomware before it has a chance to infect your systems. Be sure to configure your firewall properly and enable security features that automatically scan for malicious activity.

6. Limit User Access

Only give employees the access they need to do their jobs. This reduces the chances of ransomware spreading across your entire network if one account is compromised. Implement network segmentation to keep critical systems isolated from less secure parts of your business.

What to Do If You’re Attacked

Despite your best efforts, ransomware attacks can still happen. Here’s what to do if your business falls victim:

1. Isolate the Infection: As soon as you detect ransomware, disconnect the infected devices from your network to prevent it from spreading to other systems.

2. Contact IT or a Cybersecurity Professional: If you have in-house IT staff or a managed service provider (MSP), contact them immediately. If not, reach out to a cybersecurity expert who can help assess the situation, remove the malware, and restore your systems from backups.

3. Report the Incident: Ransomware is a criminal act, and it’s important to report the attack to local authorities and federal agencies like the FBI or the Cybersecurity and Infrastructure Security Agency (CISA). This can help with investigations and prevent future attacks on other businesses.

4. Do Not Pay the Ransom (if Possible): While it may be tempting to pay the ransom, it’s important to remember that there’s no guarantee you’ll get your data back. Paying also encourages cybercriminals to continue targeting businesses. Focus instead on recovering from backups and mitigating the damage.

Conclusion

Ransomware is a serious threat, but small business owners can take steps to protect themselves. By staying vigilant, educating employees, and implementing strong cybersecurity measures, you can significantly reduce the risk of falling victim to an attack. And if the worst does happen, having a plan in place can help you recover quickly and minimize the impact on your business with cyber liability insurance (CLI).

Stay safe, stay informed, and protect your business from the rising tide of cybercrime.