Small Business Ransomware: What You Need to Know and How to Stay Safe

Not too long ago, cybercriminals used to target big organizations like governments, hospitals, and universities—entities that couldn't afford downtime and were likely to pay a ransom. Today, however, 82% of ransomware attacks are aimed at small businesses. Why? Because many small businesses lack the security measures and training needed to defend against these attacks. Sectors such as finance, healthcare, online retail, legal services, construction, and real estate are especially vulnerable.

But really, any small business that operates online, stores data, or uses computers is at risk.

Imagine this: you go to log into your business's computer, only to find that your files have been locked down. The demand is clear—pay up or say goodbye to your data. Small businesses are prime targets because they often have weaker security, making them easier and more profitable for cybercriminals to exploit.

Did you know?

· Over 80% of people who pay a ransom will be attacked again.

· In 69% of cases, the ransomware payload is delivered via email.

· The U.S. is the most attacked country, fielding 25% of all ransomware attacks.

· Global ransomware damages were estimated to exceed $30 billion by 2023.

Source: tech.co

What is Ransomware?

Ransomware is a type of malicious software (malware) that cybercriminals use to take control of your files, devices, or even entire systems, and hold them hostage. The attackers demand a payment, or ransom, in exchange for returning access to your data.

Initially, ransomware simply encrypted a victim's files, making them inaccessible until a ransom was paid. If a business had recent backups of its data, it could restore the files without paying the ransom. However, cybercriminals have since evolved their tactics. Ransomware attackers now frequently threaten to leak sensitive information or destroy backups, making it significantly more challenging for businesses to recover without meeting their demands. In essence, ransomware attacks may specifically target your backup data, leaving you with no option for recovery.

Ransomware typically infiltrates systems through phishing emails, where clicking on a malicious link or downloading an attachment triggers the attack. Once inside, it can quickly spread, locking down computers and even entire networks. Some versions can exploit security vulnerabilities without any user interaction, putting even updated systems at risk if they aren't properly secured.

How Does Ransomware Work?

Here's a breakdown of how it typically unfolds:

Stage 1: Malware Distribution and Infection. Before Cybercriminals get the malware onto your system often through phishing. Attackers trick you or your employee into clicking a link or downloading an attachment in an email that looks legitimate but is actually dangerous. Other common methods include exploiting weak passwords or taking advantage of outdated software with known vulnerabilities. Once inside, the malware can start spreading through your system.

Stage 2: Command and Control. After the malware has infiltrated your system, it connects to a command-and-control (C&C) server run by the attackers. This server sends encryption keys to your system, installs additional malware, and facilitates the next steps of the attack.

Stage 3: Discovery and Lateral Movement. In this phase, the attackers explore your network to understand its structure and identify valuable data. They move laterally through the system, spreading the infection and escalating their access privileges to maximize the damage.

Stage 4: Malicious Theft and File Encryption. Next, the attackers steal sensitive data, sending it back to their C&C server. They then encrypt your files, making them inaccessible without the decryption key held by the attackers.

Stage 5: Extortion. This is where the ransom demand comes in. The attackers inform you that your data has been encrypted and threaten to keep it locked—or leak stolen information—unless you pay up.

Stage 6: Resolution. You must respond to the attack and make a decision: restoring from backups, negotiating with the attackers, paying the ransom, or completely rebuilding your systems to recover from the damage.

Types of Ransomware

Ransomware comes in various forms, but most attacks fall into two primary categories:

1. Locker Ransomware: This type of ransomware locks you out of your entire device. You can't access anything until you pay the ransom. In some cases, cybersecurity experts can help regain access without paying.

2. Crypto Ransomware: This form encrypts your data, making it inaccessible unless you have a specific decryption key, which the attackers control. Even if you pay the ransom, there's no guarantee the attackers will give you the key.

Other types of ransomware with specific methods of attack:

3. Scareware: This tactic tricks victims into thinking their device is infected with ransomware. The attackers then pressure you into buying software that claims to remove the fake ransomware but instead steals your data or installs more malware.

4. Extortionware (also known as Leakware, Doxware, or Exfiltrationware): In this attack, cybercriminals steal your sensitive data and threaten to publish it or sell it on the dark web if you don't pay the ransom.

5. Wiper Malware: This type of malware pretends to be ransomware but is actually designed to destroy your data, even if you agree to pay the ransom.

6. Double Extortion Ransomware: Here, attackers encrypt your data and steal a copy of it. They then demand two ransoms—one to decrypt your files and another to prevent them from leaking your stolen data.

7. Triple Extortion Ransomware: This takes double extortion a step further. In addition to encrypting and stealing your data, attackers might launch a Distributed Denial-of-Service (DDoS) attack or extort your business partners, customers, or suppliers, pressuring them to pay ransoms or urge you to pay.

8. Ransomware-as-a-Service (RaaS): This is more of a business model than a specific type of ransomware. Here, developers create ransomware and lease it to other cybercriminals who carry out the attacks. The developers then take a cut of the profits from successful attacks.

Once ransomware is activated on your computer, you'll usually see a message from the attackers. This message may demand payment—often in cryptocurrency like Bitcoin—to restore your access or prevent them from publishing your data. They usually set a short deadline for payment, often just a few days, threatening to destroy or release your data if you don't comply.

What Are the Effects of Ransomware on Businesses?

The impact of a ransomware attack goes far beyond just the ransom payment. For small businesses, in particular, the consequences can be devastating, as they often operate with limited resources.

Ransomware puts businesses in a difficult position. If you choose to pay the ransom, you not only lose money but also risk becoming a target for future attacks. On the other hand, if you don't pay, your data could be leaked, leading to significant financial and reputational damage.

The effects of a ransomware attack can include:

· Data Exposure or Loss: Sensitive information might be lost or exposed to the public.

· System Downtime: Your business operations will slow or stop while you deal with the attack.

· Lost Productivity: Employees may be unable to work while systems are down.

· Revenue Loss: With your business offline, you can lose sales and income.

· Legal and Regulatory Fines: If customer or employee data is compromised, you could face legal penalties.

· Additionally, ransomware can damage your business in other ways:

· Reputation Damage: Customers and partners may lose trust in your ability to protect their data.

· Lowered Employee Morale: Staff may feel anxious or demoralized after an attack.

· Loss of Customer Trust and Loyalty: Customers may take their business elsewhere if they feel their information isn't safe with you.

· Increased Risk of Future Attacks: Once targeted, your business might be seen as an easy mark for future attacks.

What to Do in Case of a Ransomware Attack

If your business is hit by ransomware, quick and decisive action is critical. Here's what you should do:

1. Do Not Pay the Ransom: Paying doesn't guarantee you'll get your data back, and it encourages more criminal activity.

2. Disconnect Infected Systems: Immediately isolate the affected computers from your network to stop the ransomware from spreading further.

3. Inform Your Employees: Let your staff know about the attack and instruct them not to interact with any suspicious devices or emails.

4. Assess the Situation: Determine the scope of the attack, identifying which systems and data have been compromised.

5. Contact Law Enforcement: Report the attack to the appropriate authorities, such as the FBI's Internet Crime Complaint Center (IC3) in the U.S.

6. Seek Professional Help: Bring in cybersecurity experts to help assess the breach, remove the ransomware, and secure your systems.

7. Restore from Backups: If you have clean, recent backups, use them to restore your systems and data. Ensure these backups are free from infection before restoring.

Steps Small Business Owners Can Take to Protect Themselves from Ransomware Attacks

Protecting your small business from ransomware doesn't have to be complicated. Here are some practical steps you can take to safeguard your business:

Step 1: Choose a Trustworthy Antivirus Software. Start by investing in reliable antivirus software designed for businesses. This software should protect all your devices from viruses, spyware, ransomware, and phishing scams. Look for a solution that not only prevents attacks but also offers tools to clean and restore your devices if they get infected.

Step 2: Keep Everything Up-to-Date. Cybercriminals are constantly looking for vulnerabilities in software. The best defense is to keep all your systems and applications up-to-date. Turn on automatic updates wherever possible to ensure you're always running the latest, most secure versions of your software.

Step 3: Back Up Your Data. Regularly back up your data to protect against ransomware attacks. At the end of each day, copy essential business files to a password-protected external drive, such as a USB stick or external hard drive. Make sure this backup device is not connected to your business's computer network, as attackers can encrypt or delete backups stored on networked drives.

Step 4: Use Tools to Enhance Your Security Consider adding extra layers of protection with tools like a Virtual Private Network (VPN), password manager, scam and email protection, and digital identity monitoring. These tools help secure your data, protect your online activity, and reduce the risk of falling victim to scams.

Step 5: Educate Yourself and Your Employees Cybersecurity is a shared responsibility. Both you and your employees play crucial roles in protecting your business:

Discuss Cybersecurity: Talk to your team about online safety in simple terms. Compare it to protecting physical assets like money or personal privacy.

Safe Web Browsing: Encourage employees to stick to reputable websites and avoid clicking on suspicious ads or pop-ups. Ensure they only use HTTPS websites when entering sensitive information.

Email Use: Train your team to verify email senders, especially if the message requests sensitive information or money. Remind them not to open attachments or click on links from unknown sources.

Social Media: Advise employees to be cautious about sharing personal or company information on social media, as oversharing can make your business a target.

If you are looking for a hassle-free way to protect your business from cyber threats, get Bitdefender Ultimate Small Business Security.

This all-in-one security package is specifically designed for small businesses, offering complete protection for your devices, digital activities, and sensitive data—all at an affordable price.

With Bitdefender, you get top-notch security that's easy to manage, even if you don't have technical expertise. It covers all the essentials so you can focus on running your business with peace of mind, knowing you're safeguarded from every angle.

Bitdefender Ultimate Small Business Security comes in four flexible plans to fit your team size—whether you have 3, 5, 10, or 25 employees. It supports multiple platforms, including Windows, Windows Server, Mac, Android, and iOS, ensuring comprehensive protection across your entire business.

Find out more, here.

FAQs

What is the Difference Between Ransomware and Extortionware?

Ransomware and extortionware both involve cybercriminals demanding money, but they operate differently. Ransomware encrypts your data or locks you out of your systems, demanding a ransom for the decryption key or access. Extortionware, on the other hand, steals sensitive data and threatens to release it publicly or sell it unless you pay up. While ransomware holds your data hostage, extortionware uses the fear of exposure as leverage.

Should I Pay the Ransom?

Paying the ransom is generally not recommended. According to the FBI's Cyber Division, paying the ransom does not guarantee that you will regain access to your data or prevent future attacks. In fact, the FBI advises against paying ransoms because it encourages and funds further criminal activity. The FBI also notes that many organizations that pay the ransom do not fully recover their data and may still face additional attacks. Instead, it's better to focus on preventive measures and work with cybersecurity professionals to address the breach and minimize damage.

Will Cyber Insurance Cover the Ransom?

Some cyber insurance plans do cover ransom payments, but this is not always the case. With ransomware on the rise, access to coverage is expected to diminish as cyber insurance continues to change in response to ever-increasing claims. Carefully review your policy and speak with your insurance provider to understand what is and isn't covered in the event of a ransomware attack. Keep in mind that even if a ransom payment is covered, the overall impact of an attack, including downtime and reputation damage, may not be fully reimbursed.

However, for some organizations, insurance and payment policies ended up not mattering at all. One in three organizations still could not recover their data even after paying, according to Veeam's Ransomware Trends Report.