Why Ransomware Attacks Are a Big Problem for Small Businesses

Ransomware has become a huge problem all over the world. Nobody is safe from this insidious scheme. The incidences of ransomware attacks continue to increase every year – and businesses, individuals, private organizations, and even government agencies have been targeted.

But why is it such a huge problem? – It’s simple: criminals know that ransomware attacks work. Small businesses are especially vulnerable because they don’t have enough resources to counteract the massive losses after an attack and recover.

Here’s everything you need to know to protect your small business.

What is Ransomware?

In case you didn’t know, ransomware is malware. By using complex encryption, it locks the victim out of their own computer. As soon as the victim attempts to gain access to their device or network, they receive a demand to pay a sum – usually in Bitcoin – as a ransom. While there are many types of ransomware, some are more dangerous than others.

To learn more about this malicious software, visit https://www.servicenow.com/products/governance-risk-and-compliance/what-is-ransomware.html.

Small Businesses Are a Soft Target

Small businesses are especially at risk of ransomware attacks because they rarely take the necessary precautions. Cybercriminals consider small businesses soft targets because they often have tight budgets and do not prioritize cyber security. According to a recent study, as much as 51% of all small businesses do not have adequate cyber security.

On the other hand, large corporations have the resources to purchase the best cyber security, making them harder targets. That’s why more than half of all ransomware victims are small businesses.

A Ransomware Attack Can Cost You Your Business

According to the FBI, 2,474 ransomware attacks were responsible for at least 29 million dollars of business losses in 2021 – and this number is only expected to grow. That’s an average of $11,721 per victim.

While larger businesses can absorb the cost of a ransomware attack, smaller companies can’t. In fact, 60% of small and mid-sized businesses that have experienced a cyber attack have had to close their doors within six months. That’s why cyber attacks are such a big problem for small businesses – they simply can’t afford the financial loss.

How to Prepare for Ransomware Attacks

As we’ve discussed, most small businesses are utterly unprepared for a ransomware attack. Small business owners usually presume that cybercriminals won’t target them because they don’t have as much capital as larger companies. Alternatively, they often fail to implement adequate cybersecurity measures because they can’t afford them. This is precisely why they are common targets.

Luckily, it’s not difficult to prepare for a cyber attack and protect your business. Cybercriminals tend to look for soft targets that are low-risk.

Create Backups

The first thing to do is create backups of all your critical data and update it daily. Creating a “system image” file to save the current state of your device or server will help ensure that none of your data is lost if you have to wipe your machine.

Wipe Your Device

If you are a victim of a cyber attack, wiping your drive is the best option. Ransomware attackers are unpredictable, and there is no way to know they will keep their word once you have paid the ransom. Of course, restoring all your essential data will mean there will be some downtime, but you’ll suffer minimum losses.

Implement Network Monitoring

Another way to secure your data is by implementing network monitoring. This will help you detect ransomware attacks in the early stage. While this is the best way to protect your business from cyber criminals, it requires constant attention and is better handled by a third party.

Keep Hardware and Software Updated

It’s also important to ensure your hardware and software is regularly updated. Usually, tech companies discover vulnerabilities and backdoors in their hardware and software and release security ‘patch’ updates to secure them.

Don’t Fall Prey to Phishing Scams

Finally, you should familiarize yourself with cyber criminals’ modus operandi. Usually, they will con victims into giving them the information they need to launch a cyber attack.

Calls and emails that ask you for privileged information – like your bank account number or security passwords – are called ‘phishing’ attacks. You should never give anyone your passcodes or any other vital personal information.