Startups and SMEs are prime targets for ransomware attacks
Nov 14, 2024
It has become increasingly common to read news about ransomware attacks on large companies, such as Lojas Renner, but startups and small to medium-sized enterprises (SMEs) are not immune to this type of crime. On the contrary, the U.S. Department of Homeland Security states that at least half of all ransomware attacks target SMEs. Brazil leads the ranking of cyberattacks in Latin America with 3.2 billion attacks in just the first quarter of 2021, most of which were ransomware attacks.
What is Ransomware? A ransomware attack occurs when a criminal installs malware (malicious software) on a device, which can be a computer, smartphone, server, or cloud service of the company, without authorization. Through this malware, an attacker can access and encrypt all the data of a user or organization, as well as block access to this information. To unlock the data, criminals demand a ransom, usually payable in cryptocurrency. This is the fastest-growing cybercrime in the world. By 2031, it is expected that a user or company will fall victim to this type of attack every two seconds.
How does someone get Ransomware? There is no single answer to this question. There are various entry points, but one of the most common methods is through phishing emails that induce the user to download an infected file. These scams are successful because they appear legitimate, leading the victim to believe they are clicking on a link or downloading a file at the request of a reputable source, such as a CEO, vendor, or institution, like their bank.
What are the consequences of a Ransomware attack? The average cost of a ransomware attack in 2020 was $4.4 million. In addition to the ransom, the total cost of this type of attack includes losses associated with the disappearance of the hijacked data, costs related to investigation and recovery of the data, along with a significant crisis in image and reputation, which can substantially impact profits and market share.
Why are Startups and SMEs targeted by these attacks? Unlike large enterprises, most SMEs do not have systems for detecting and preventing cyberattacks. Unfortunately, many entrepreneurs fall into the trap of believing that being small means they won't be targeted by hackers. 25% of American SMEs reported having no plan in place to avoid ransomware attacks, a number that is likely even higher in Brazil.
The consequences of such attacks for startups and SMEs go beyond lost profits and tarnished reputation. The cost of having systems down can be up to 50 times more expensive than the ransom itself. Approximately 60% of small to medium-sized enterprises go bankrupt within six months following a ransomware attack.
How to prevent and mitigate Ransomware attacks:
Utilize network segmentation to keep critical applications and data isolated from others, making it harder for ransomware to spread.
Maintain a regular backup routine for your company's data to mitigate the impact in case you fall victim to an attack.
Download the Unxpose Cybersecurity Awareness Guide to educate employees on how to recognize phishing emails and malicious links.
Avoid downloading software from unknown sources; always prefer official app stores or recognized websites as secure download sources.
Keep your operating system and applications, whether on employee computers or servers, up to date.
Monitor data leaks with Unxpose to know if any of your company’s corporate credentials have been compromised. Criminals can use them to pose as employees and send emails with malicious files, used in ransomware attacks.
Monitor for DNS vulnerabilities with Unxpose. DNS flaws are commonly facilitators of phishing attacks and can allow intruders to send emails impersonating someone from your company, which can be exploited to facilitate ransomware attacks.
Check if the websites you visit use the TLS (Transport Layer Security) protocol. Sites utilizing this protocol display a padlock in the address bar and start with https://.
Never pay the ransom, as there is no guarantee that the data will be returned.