Cyberattacks Don’t Spare Small Businesses

It’s often assumed that smaller companies are less likely targets for cybercriminals than large organizations. But the reality is quite different. According to Veeam’s 2023 Data Protection Trends Report, a staggering 85% of ransomware attacks are aimed at small and medium-sized businesses (SMBs). That’s not entirely surprising, considering that smaller businesses often have limited IT resources.

Unfortunately, many small and medium-sized businesses are unprepared for such attacks. They either lack an incident response plan or haven’t tested it sufficiently. A large portion of victims end up paying the ransom, yet even then, data recovery is not guaranteed—about 25% of cases result in permanent data loss despite the ransom being paid.

The Impact of a Cyberattack
For small and medium businesses, ransomware attacks can be devastating. The biggest threat is the inability to recover from the attack.
What kind of impact can it have?

• Operational downtime: Many businesses are unable to continue normal operations during the attack.
• Reputational damage: Customer trust is lost, especially if sensitive data is leaked.
• Legal liability: Fines and lawsuits may follow.

What Is Ransomware and How Does It Work?
Ransomware is malicious software that locks a company’s files and systems, making them inaccessible. The files are encrypted, and a ransom is demanded to unlock them. Often, there’s also a threat to release sensitive company data publicly. The scope of an attack can vary—from a single workstation to an entire server infrastructure.
It’s important to understand that paying the ransom does not guarantee data recovery. According to Veeam’s report, 25% of those who paid were still unable to fully recover their data.

How Does Ransomware Enter a Business?
Cybercriminals use various tactics, the most common being:

• Phishing: Deceptive emails or messages designed to trick users into revealing passwords or access credentials.
• Malicious email attachments: Seemingly harmless documents that contain malware.
• Infected websites: Malware that downloads automatically when visiting a compromised website.
• Lack of software updates: Exploiting vulnerabilities in outdated or unpatched systems.

Why Small Businesses Are Vulnerable
Small and medium-sized businesses are often more vulnerable due to several factors:

• Limited IT capabilities: Many lack a dedicated IT team or in-depth knowledge of cybersecurity.
• Budget constraints: With limited resources, cybersecurity spending often takes a backseat.
• Inadequate security measures: No use of multi-factor authentication (MFA), Zero Trust principles, or solid data recovery strategies.
• Weak backup practices: Failure to follow the 3-2-1 rule—three copies of data, on two different formats, with one copy stored offline.

How to Protect Your Business
Protecting your business doesn’t have to be expensive or complex—but it does need to be thoughtful. Strong protection rests on three pillars: prevention, backup, and response.

1. Raise Employee Awareness
Train employees to recognize cyber threats. The most common weak link is a person who unintentionally clicks the wrong link or shares sensitive information. Regular cybersecurity training helps reduce risks.

2. Implement Technical Measures

• Use multi-factor authentication (MFA)
• Encrypt data, including backups
• Restrict access based on user roles
• Apply security updates immediately
• Use endpoint protection software

3. Backup and Recovery
A good backup plan is critical in a ransomware attack. Make sure that:

• Your backups are updated regularly
• They are scanned for malware
• They are tested for successful recovery
• At least one backup is offline and immutable

4. Be Ready to Respond
Develop a ransomware response plan. It should include steps from incident detection to full system recovery. Practice the plan at least once a year—simulations help prepare your team for real scenarios.

What If You Don’t Have a Large IT Department?
A small IT team may not be able to manage all security threats alone. A good solution is to collaborate with other companies, IT experts, and security service providers. Share experiences, hold joint discussions, or use support provided by national cybersecurity organizations.

Primend can also help businesses assess their cybersecurity maturity and provide support for both prevention and incident response.

Regulatory Requirements and Reputational Risks
The EU General Data Protection Regulation (GDPR) requires businesses to ensure data security. A data breach caused by a cyberattack can result in fines, loss of customers, and reputational damage. Additionally, incidents often need to be officially reported, and affected parties must be notified.

Summary
Cyberattacks aren’t just a big business problem—smaller companies are often even more vulnerable. A ransomware attack can bring operations to a halt, cause major data loss, and even force a business to shut down.
The key words are preparedness, backup, and collaboration. Take simple yet effective steps like employee training, technical safeguards, secure and tested backups, and a well-practiced crisis plan.
 

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