Hackers Using Strategies that Would Make a Supervillian Proud

It’s been said several ways, but it’s true that small businesses are the lifeblood of our community. They are the local diner serving up comfort food and the hardware store that has everything you need. Unfortunately, there's a growing, insidious threat looming over these vital enterprises, a digital assailant that's becoming increasingly sophisticated: ransomware.

Ransomware, for those unfamiliar with this digital menace, is a type of malicious software that blocks access to your computer systems or encrypts your files, demanding a ransom payment—often in cryptocurrency—to restore access. It’s something the iconic character Dr. Evil from the Austin Powers movies would unleash; with a pinky-up “Riiiiight” in tow.

Why Small Businesses Are Prime Targets

You might think hackers won’t target your small business, but that's precisely why you are one of a hacker’s prime targets. Cybercriminals view SMBs as soft targets, and low-hanging fruit, because they often have limited IT expertise than much larger organizations, a lack of capital to invest in IT security that would work to proactively mitigate these problems, and hold less truly valuable data; which seems like a deterrent until you realize that any data these people scrape from an organization can be viewed as potentially lucrative. 

Going a bit deeper, the statistics are extremely sobering. In recent years, 46 percent of all cyberbreaches impacted businesses with fewer than 1,000 employees; and, while malware is the most common cyberattack, ransomware is a devastating subset, with over 75 percent of ransomware attacks since the pandemic started targeting companies with fewer than 1,000 employees. In fact, around one-in-three companies hit by ransomware had fewer than 100 employees.

More Than Just the Ransom

When ransomware strikes, the initial thought might be about the ransom demand itself. While the average ransom for small businesses can be around $6,000, the actual cost extends far beyond that payment. The other problems are multi-faceted and often a bigger deal than the ransom.

Downtime and lost productivity, for example. Imagine your point-of-sale system freezing, your inventory inaccessible, or your customer database locked. Operations grind to a halt, leading to significant revenue loss. Some businesses can be down for weeks. Reports indicate that 50 percent of SMBs take 24 hours or longer to recover, with a slightly larger percentage stating their web portals were inaccessible for 8-to-24 hours.

Trust is the cornerstone of any local business. A ransomware attack, especially one that leads to data exposure, can shatter that trust overnight. Customers may lose confidence, fearing their own data is at risk, and take their business elsewhere. This is a real problem for people that don’t always have the breadth of new customers larger organizations can claim. 

Even if you don't pay the ransom, the cost of remediation is steep. This includes hiring cybersecurity specialists to identify and remove the ransomware, restoring systems, and strengthening your defenses. Most organizations also pay for consultations to try and put themselves in a better position, putting strain on an already complicated budget.

Also, depending on the type of data compromised, small businesses can face hefty fines for non-compliance with data protection laws and even lawsuits from affected customers. Unfortunately, a staggering 75 percent of SMBs could not continue operating if they were hit with ransomware. We've seen examples across the spectrum of different digital businesses. 

While you may not have $1 miiiiilllion (or $100 billion…) to pay hackers to leave you alone, there are some things you can do to keep these attacks at bay. They include:

• Keep regular data backups - This is cost effective and can be your ultimate safety net. Implement a robust backup strategy, ideally following the 3-2-1 rule: three copies of your data, on two different media, with one copy offsite. Also, be sure to test your backups regularly to ensure they can be restored.
• Have a regular update schedule -  Think of software updates as a mandatory task for keeping vulnerabilities down. These updates don't just add new features; they often include critical security patches that close vulnerabilities hackers love to exploit. Enable automatic updates whenever possible.
• Provide cybersecurity training - Your team is your first line of defense. Regular training on recognizing phishing emails, understanding strong password practices, and identifying suspicious activity can significantly reduce your risk. 
• Put a comprehensive response plan in place - You know what they say… Hope for the best, but plan for the worst. Having a clear, well-rehearsed plan for how to respond to a cyberattack can minimize damage and expedite recovery.

For a cybersecurity assessment or to learn more about how WatchPoint Solutions can safeguard your small business, give us a call today at (848) 202-8860.