Ransomware is a type of malicious software designed to block access to a computer system until a sum of money is paid. It encrypts files on the infected system, making them inaccessible, and then it demands ransom for the decryption key. This first post will delve into what ransomware is, how it operates, and why it’s a growing concern for businesses of all sizes.

Ransomware can affect small and medium sized businesses

In recent years the impact of ransomware attacks has been substantial, resulting in the loss of productivity and revenue. The following statistics demonstrate why businesses need to be vigilant in how ransomware attacks occur: 

• Ransomware attacks increased more than 95% in 2023. (DarkReading)
• As of 2023, over 72% of businesses worldwide were affected by ransomware attacks. (Statista)
• The number of ransomware victims in 2023 surpassed by 95% what was observed for 2021 and 2022. (DarkReading)
• The media, leisure, and entertainment industry had the highest number of vulnerabilities exploited in ransomware attacks. (Statista)
• 36% of the organizations suffered ransomware attacks because of exploited vulnerabilities. Credential compromise was the second-most common cause of successful ransomware attacks, while malicious email ranked third. (Statista)
• The average cost of each ransomware attack last year was over $5 million, which was a 13% increase from 2022. 2024 is expected to be even more costly. (Fisher Phillips)
• The CL0P ransomware group has played a major role in the spike of 2023 ransomware activity. (DarkReading)

What is ransomware?

Ransomware attacks involve unauthorized encryption of data by cybercriminals, who then demand payment in exchange for decryption keys. These attacks can affect individuals and organizations of all sizes.

Types of Ransomware

Ransomware falls in the following categories: 

• Crypto Ransomware: Encrypts valuable data and other assets like documents, images, and videos, making them inaccessible without a decryption key.
• Locker Ransomware: Locks users out of their operating systems, making it impossible to access any files or applications.
• Scareware: Fake software that acts like an antivirus or a cleaning tool, tricking users into paying money for unnecessary or harmful services.

How a Ransomware attack occurs: 

 

1. Infection: Malware is delivered through phishing emails, malicious websites, or through unpatched software vulnerabilities.
2. Encryption: Once the malware is inside the system, it encrypts all of your files, your databases, or your locks down your entire systems.
3. Ransom Demand: Victims are then presented with a ransom note demanding payment (usually in cryptocurrency/bitcoin) to retrieve a decryption key.

Impact on Businesses

The consequences of a ransomware attack can be severe, including operational downtime, financial losses, legal consequences, and reputational damage. The best way to protect your business is to never allow a ransomware attack to occur in the first place. 

How SMBs Fall Victim to Ransomware Attacks

Small and medium-sized businesses (SMBs) are increasingly targeted by ransomware due to perceived vulnerabilities in their security postures. However SMBs can often underestimate their risk of cyberattacks, including the risk of being victim to ransomware attacks. The following are some common vulnerabilities and tactics hackers use to deploy ransomware in these businesses.

Common Vulnerabilities Include:

• Outdated, and end of life software and hardware: Unpatched software and hardware are open to vulnerabilities that are easily exploited by cybercriminals.
• Lack of employee training: Employees unaware of phishing and other deceitful tactics can inadvertently introduce ransomware into the network.
• Inadequate backup and recovery plans: Lack of regular and secure backups can leave businesses without recourse in the event of an attack.

Hackers’ Tactics:

• Phishing Emails: Convincing emails that trick users into downloading an attachment or clicking a link that leads to ransomware infection.
• Exploiting Remote Desktop Protocol (RDP): Unsecured RDPs provide a very easy entry point for attackers to drop in malicious code.
• Drive-by downloads: Visiting malicious websites that automatically download ransomware onto unsuspecting users’ devices is a common tactic.

Defending against and responding to ransomware attacks

Preventing ransomware attacks requires a proactive approach to cybersecurity. There are actionable steps that SMBs can take to protect themselves. As a first step businesses should create a playbook and an action plan that outlines what to do in the event of an attack.

Here are the minimum preventive measures you should have in place:

• Regular software and hardware updates: Keep all systems and software up to date to patch vulnerabilities.
• Automated security monitoring:  An automated security service that checks all outgoing and incoming links and emails can help prevent malicious websites and email phishing attacks. 
• Employee awareness training: Educate employees on recognizing phishing attempts and safe internet practices.
• Backup and Disaster Recovery Plans: Regular, secure backups and clear disaster recovery plans ensure business continuity.

If you are a victim of a ransomware attack:

• Do not pay the ransom: Paying the ransom does not guarantee file recovery and it also encourages further attacks.
• Isolate infected systems: Prevent the spread of ransomware by isolating and removing affected devices from your network.
• Seek professional help: Cybersecurity professionals like Horn IT Solutions can assist in mitigating the attack and potentially recovering your encrypted data.
• Mitigating risks: Implementing a multi-layered security approach, including endpoint protection, firewalls, and automated intrusion detection systems, can help safeguard against ransomware.

Conclusions

Understanding ransomware is the first step in protecting your business from this digital threat. Awareness and education on the subject can significantly reduce the chances of becoming a victim.  SMBs are not immune to ransomware attacks. Recognizing the common vulnerabilities and tactics used by attackers is crucial in bolstering defenses against these cyber threats.

While the threat of ransomware is real and growing, there are effective measures SMBs can take to protect themselves and mitigate the impact of an attack. Being prepared and knowing how to respond can make all the difference.

Stay tuned for the next post in this series on why you may consider having Cybersecurity Insurance and what the best options are.

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Through real-time threat detection, robust encryption protocols, and continuous security updates, Horn IT ensures that your data remains resilient against evolving cyber threats. Invest in peace of mind as we empower you with the tools and expertise needed to repel ransomware attacks, preserving the integrity of your critical information and maintaining the trust of your stakeholders.

Horn IT solutions is here to help with your security posture to ensure that you don’t fall victim to a devastating ransomware attack. Contact us for a security assessment or for cybersecurity training for your employees. 

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