How To Protect Your Business From Ransomware

As businesses have evolved to rely on technology for everything from payment services to booking appointments, malware attacks are becoming a uniquely destructive threat to the business sphere.

Ransomware – a type of malware that holds data and operating systems hostage in exchange for a fee – is a growing issue for small businesses. Attackers take advantage of weak security, business owners’ access to cash and sensitive data and the sense of urgency that can come with losing use of critical business operations.

Key statistics about ransomware and small businesses

• Over half (55.8 percent) of ransomware attacks in 2024 were on businesses with fewer than 50 employees.
• Of small businesses who experienced a cyberattack, 42 percent reported revenue loss, according to the Internet Threat Research Center 2023 Trends in Identity Report.
• Nearly one in three (32 percent) reported loss of customer trust.
• Nearly one in three businesses (32 percent) reported increased employee turnover.
• Cyberattacks are steadily increasing, with a 45 percent increase in attacks for Q1 2025 alone, according to cybersecurity firm BlackFog.
• The top five most at-risk industries for ransomware are construction, technology, finance, business services and healthcare, according to Nordlocker.

“Unfortunately, ransomware is on the rise for small businesses because they’re such attractive targets,” says Dr. Darren Williams, founder and CEO of cybersecurity firm BlackFog.

“They’ll go after the easiest targets they can, they can, and small businesses are pretty easy targets,” Williams said. “Generally, they’re not going to have cybersecurity protection at all.

With ransomware on the rise, it’s critical to understand cybersecurity threats to your business and how to protect your data from attacks.

What is ransomware?

Ransomware is a kind of malware that infects a device and locks the files and data in it, either by encrypting the data or blocking access. The user is given a ransom message embedded in the malware, demanding payment. Some ransomware messages will pose as government messages or alerts from legitimate software companies such as Microsoft in order to convince their victims to pay up.

Attackers will often threaten to permanently delete or encrypt the files if the ransom isn’t paid in time, or leak sensitive data online. They can also block critical business infrastructure such as customer access portals, payment suites or filing systems, crippling operations.

Where does ransomware come from?

Ransomware can infect your network through a variety of means, including email, text and network infiltration. Common ways ransomware attacks happen include:

• Clicking on phishing links. Attackers will often email employees with legitimate-seeming links, encouraging them to click on them in order to download malware onto their device.
• Vulnerable Web servers. Attackers can exploit weak network security if you don’t have a good firewall or a security system in place.
• WiFi hacking. Users accessing public or unsecured WiFi run the risk of allowing attackers access to their device, where they can inject malware.

The business impact of ransomware

Even a small ransomware attack can be devastating to your business. While a cyberattack might not seem like a big deal, especially if you can resolve it by paying a fee, ransomware can do damage to your business in multiple ways.

• Loss of critical data and infrastructure. Ransomware can quickly clear out your saved payment information, documentation, payroll files, invoices and other data crucial to your business.
• Loss of revenue. Downtime and lost files due to ransomware attacks can result in a massive loss of productivity, potential sales and billable hours.
• Leaked sensitive information. Ransomware attackers will often harvest sensitive data such as customer and employee addresses, credit card numbers and identifying information to sell on the dark web.
• Loss of customer trust. Customers who have had their data leaked will lose faith that your business can keep their data safe and possibly take their business elsewhere.
• Legal fines and penalties. Data breaches due to ransomware can result in heavy fines due to regulations about the storage and security of sensitive data.

Signs of a ransomware attack

A ransomware attack doesn’t begin when you get a ransom message on your screen. Before the malware reveals itself and demands money, it works in the background of your devices to encrypt and lock away your data without you noticing.

While the malware will often be undetectable in the early stages, there are a few red flags to watch out for:

• Slow performance. Ransomware often bogs a device or network’s performance as it encrypts files.
• Spikes in network activity. Attackers or malware attempting to access your devices can cause an increase in network traffic, which can be seen through a monitoring service.
• Unusual logins or access. Logins from strange locations, old users or at odd times can be a sign of unauthorized access.
• Random authentication notices. If you use a two-factor authentication service and receive authentication notices when you aren’t trying to log it, it could be a sign of an attacker or malware trying to gain access.
• Disabled security software. Some ransomware can remove or turn off certain security features, such as two-factor authentication.
• Excessive downloads or file retrieval. This can be a sign that attackers are extracting data in order to sell it or use it for blackmail.

What to do if your business is attacked by ransomware

Losing access to your files as they’re locked behind a ransom message can be a business owner’s worst nightmare. If you’re attacked, take these steps immediately.

1. Power off all your devices

One of the fastest ways to stop encryption is to physically cut off the power, as malware can’t work if the device isn’t on. While it won’t always save your files, it can buy you some time until you can bring a cybersecurity or recovery expert in.

Cybersecurity expert Danny Jenkins, CEO and Co-Founder of ThreatLocker, recommends physically cutting off the power to infected devices instead of trying to simply take them off the WiFi, as ransomware can still work even when not connected to the internet.

2. Contact your cybersecurity provider

Call your security provider before powering on any of your devices or accessing the network. They can advise you on what to do next and help initiate the process of removing the malware, unencrypting the files and recovering the data.

3. Don’t pay the ransom

Paying the ransom only temporarily gets rid of the problem. The malware can still exist on your device and your network, and paying the ransom signals to the attackers that you’re willing to give them cash.

Moreover, paying the ransom can often be illegal and result in criminal fines and penalties. It also continues to fuel the world-wide problem of ransomware.

“If the whole world didn’t pay ransoms, they’d be our business and that’s that’s the reality of it,” Jenkins said. “These ransoms go to really bad people, and they’re not just cyber criminals. They’re also criminal gangs that can get involved in human trafficking.”

How to protect your business from ransomware

With a high chance that your business will be targeted by ransomware in the future – if it hasn’t already – getting protection in place is critical for protecting your and your customers’ data.

The good news is that you don’t need to have an in-house IT team or the most expensive protection plan in order to keep your business safe from malware. Even a standard

“You’re either being infected or will be infected,” Williams said. “It’s a matter of just providing some basic level of protection so they move on to the next guy.”

1. Work with a cybersecurity provider

If your business can’t afford an in-house IT solution, cybersecurity providers can provide subscription-style services that provide protection for your devices, including embedded firewalls, MFA services, network and attack monitoring and on-call technicians that you can contact if you’re attacked or have questions.

2. Update your equipment

Equipment running on older operating systems are uniquely vulnerable, since they’re often left out of critical security updates from the software provider, or not compatible with newer security solutions, which make them uniquely juicy targets for ransomware.

“If you’re running Windows XP and Windows 7 machines, then those machines cannot be patched,” Jenkins said. “They’re very vulnerable.”

If getting rid of older devices isn’t an option, there are certain steps your cybersecurity provider can take to limit risk, such as isolating the device from the rest of the network or keeping critical data stored elsewhere.

3. Back up your data

Data backups are a crucial piece of insurance against ransomware attacks, as well as non-malware issues such as server outages or data corruption.

Backing up your data should happen on a regular basis so that it stays up-to-date. Backup data should also be kept separate from the original data, such as on a separate server, device or on the cloud. This ensures that if anything destroys or encrypts the original data, the backup is kept safe and unaffected.

4. Use multifactor authentication

Multifactor authentication adds another layer of security against attackers. When users log into the network or to an application, they’ll need access to both their login credentials and their email, phone or other authentication device in order to gain access. This can stop attacks in their tracks and help alert you to unauthorized login attempts.

5. Make cybersecurity a top priority

While paying extra money each month to maintain your cybersecurity services may seem unnecessary, preventing a ransomware attack can save your business thousands of dollars in lost revenue, fines and downtime. As businesses continue to be prime targets for ransomware gangs, keeping security top-of-mind can pay off in the long run.

“Prevention is better than the cure,” Jenkins said. “Get your security better before you actually do get attacked.”

The bottom line

Ransomware is a growing threat to businesses as criminal gangs use malware to take advantage of weak cybersecurity to steal and lock data behind malicious paywalls. Businesses need to focus on protecting their networks and devices by working with cybersecurity firms and updating their equipment, or stand the risk of losing revenue, breaking the law and damaging customer trust and data.