Ransomware
Malware that encrypts a victim's files or systems and demands payment for the decryption key — one of the most disruptive and costly threats facing SMBs today.
What Is Ransomware?
Ransomware is a type of malicious software that encrypts files on an infected system, rendering them inaccessible. The attacker then demands a ransom — typically in cryptocurrency — in exchange for the decryption key. Some modern ransomware also exfiltrates data before encrypting it, threatening to publish stolen information unless paid ("double extortion").
How Ransomware Spreads
- Phishing emails: Malicious attachments or links that install ransomware when clicked
- Remote Desktop Protocol (RDP): Brute-forced or stolen credentials used to access internet-exposed RDP
- Software vulnerabilities: Unpatched systems exploited through known vulnerabilities
- Compromised supply chain: Malware delivered through a trusted vendor or software update
The Real Cost
Direct ransom payments are only part of the damage. SMBs typically face:
- Days to weeks of operational downtime
- Cost of incident response and recovery
- Reputational damage and customer churn
- Regulatory penalties if personal data was breached
- Potential legal liability
Many SMBs that pay the ransom never fully recover their data. Around 40% of organisations that pay are hit again within a year.
Prevention Measures
- Maintain offline backups: The 3-2-1 rule — three copies, two media types, one offsite — ensures recovery without paying
- Patch promptly: Most ransomware exploits known, patched vulnerabilities
- Restrict RDP: Disable it if unused, or put it behind a VPN with MFA
- Deploy endpoint protection: Modern EDR tools detect ransomware behaviour before encryption completes
- Segment your network: Limit blast radius so ransomware can't spread across all systems
- Train your team: Phishing is the #1 delivery method — awareness reduces risk
If You're Attacked
Disconnect affected systems immediately. Do not pay the ransom without consulting a specialist — payment funds future attacks and doesn't guarantee data recovery. Contact your incident response provider or law enforcement.