The Dangers of Ransomware to Your Business

Ransomware victims can vary from large global companies to small businesses. Every business should take measures to learn what ransomware attacks are and how they can best be avoided.

Verizon reported 832 incidents of data breaches for small businesses in 2022. Of these attacks, 130 confirmed data loss, with nearly 80% of the attacks a result of ransomware. 

Usherwood assists clients with recognizing vulnerabilities, securing their environment, and protecting themselves from breaches that could result in significant financial losses.

Here's why it's vital to practice proactive cybersecurity strategies and use the right tools to mitigate potential threats like ransomware. 

What is A Ransomware Attack?  

Ransomware is malicious software that encrypts your computer system and blocks access to valuable information or files. Your data and files will only be released to your company once a certain amount of money is paid to the ransomware hacker.  

Getting hit by a ransomware attack can happen to any person or business. Once your system suffers a ransomware infection, it can result in a significant financial loss and extended downtime until the system is back up and running. 

How Does Ransomware Work? 

A ransomware attack encrypts your data, and the hacker holds a private key that decrypts it. This type of malicious activity is difficult to outmaneuver because if handled improperly, these attacks can delete critical data.

When you get hit with ransomware, a message will be displayed on your screen informing you about the ransomware attack and demanding payment. 

To Pay or Not to Pay?

It's highly discouraged to pay ransoms to hackers because it can encourage the perpetrators to target more victims. However, some will cave and pay ransoms rather than waiting it out or trying to unencrypt it themselves.  

Many people don't feel they have the option to wait for their system to recover. For instance, if an educational institution were to get a ransomware attack, this would affect thousands of people, if not more.

In this case, the institution would want the episode resolved as quickly as possible, incentivizing them to make the payment.  

Another reason many people pay off the ransom is that there's far more to lose when the network is down than to pay off a sum of money quickly. To learn more about what do do in the event of a ransomware attack, read our blog about it here. 

Damaged Caused by Successful Attacks

When a computer system is under a ransomware attack, it can lead to:

• Loss of sales opportunities
• A damaged reputation
• Lost customer or investor confidence
• Loss of confidential information for our business and your clients  

Data exfiltration is another significant concern. This is when hackers can access a victim's confidential information, files, logins, and emails. This data can be taken and leaked to the public. This typically leads to blackmail, another reason companies pay the ransom. 

Are Actual Businesses Falling Victim to This? 

Ransomware attacks are a growing threat to many industries. In the past few years, you may have heard of the ransomware attack on Colonial Pipeline, whose network was taken hostage until Colonial paid $4.4 million to avoid leaking confidential information.

Another recent instance was St. Margaret’s Health in Spring Valley Hospital in Illinois, which permanently closed its doors partly due to a ransomware attack. The attack prevented the hospital from submitting claims to insurers for months, resulting in financial trouble and eventual failure. 

Kaseya, a software development company, was also targeted in 2022. This led to about 1,500 other businesses getting compromised around the world. Kaseya was a significant opportunity for the hackers, because not only did they breach Kaseya's network, but they also got into the networks of the software developer's clients.

Early Ransomware Detection Techniques

Your first line of defense against these attacks is early detection. Threat mitigation is always easier than ransomware recovery after you fall victim, so a proactive approach is best.

• Keep your system, browser, and software updated. 
• Use a robust security solution such as Zero Trust architecture
• Back up your data. 
• Be careful of what you download or click. 

Many antivirus solutions can recognize patterns associated with common ransomware variants, but malware detectability can get tricky with outdated anti ransomware software. Some brand-new kinds of attacks, labeled zero day attacks, require special tools such as machine learning to detect them.

To read more about different tools and strategies businesses use to detect and combat malware, read our blog: EDR vs Enterprise Antivirus: What’s the Difference?

Although these tips can help prevent a ransomware attack, sometimes there's no foolproof way to stop it. For this reason, it's crucial to have an incident response plan in place if it does.  

Is Your Business at Risk for Cyber Threats? 

Ransomware attacks are not the only threat to be aware of. As a Managed IT company, we meet with businesses often to determine if they're taking the proper steps to mitigate cyber threats.

What should your company do to ensure an efficient cybersecurity culture? Here is a checklist to help determine if your cybersecurity is where it should be: 5 Signs You Have Good Cybersecurity Culture.