Imagine attempting to connect to your company's computer only to discover that your files have been kidnapped. Either you pay up, or your data is lost forever.

It seems like something out of a TV show, but it's a real problem with a projected cost of $20 billion by 2021. Small companies are increasingly being targeted around the country.

Cyber extortion, often known as ransomware, is an internet crime in which your data or device is held for ransom. Small businesses are targeted by cyber fraudsters because they typically have fewer security measures in place. They're simple and lucrative targets.

You can't afford an attack as a small business owner. However, before you can learn how to protect your company from ransomware, you must first grasp what it is.

Ransomeware Explanation

When someone opens a link in a phishing email or downloads an email attachment, ransomware is usually activated. It has the ability to take control of a computer or perhaps a whole network once launched. Not having a zero trust policy in place can make the risk of attack even greater. 

Ransomware can also be distributed via security flaws and corrupt a system without the user's knowledge. Ransomware and malware attacks are particularly vulnerable in older, unsupported versions of Microsoft Windows.

Even newer systems are susceptible if updates for known security flaws aren't applied. For example, in 2017, the WannaCry ransomware attack infected thousands of individuals whose sole fault was failing to install a recent Windows update.

Ransomware comes in a variety of forms. In a malware assault, there are two types of ransomware:

• Locker - This ransomware prevents users from accessing their gadgets. This is the most basic type, and a cybersecurity specialist may be able to restore access in some cases.

• Crypto - This ransomware encrypts the data of its victims. If data is encrypted, it cannot be read without a one-of-a-kind decryption key, which hackers may or may not possess.

Your computer will normally display a message from the hackers once ransomware has been installed. It may request money in order to regain access to your files or unlock your computer. If you don't pay up, it may threaten to publish sensitive information.

Hundreds or even thousands of dollars in bitcoin or another cryptocurrency may be demanded in ransom requests. They normally set a payment deadline of a few days or less. Your data will be erased or publicized if you do not pay.

Why It's Alarming

The trend of keeping data in the cloud, taking online payments, and doing most commercial transactions online isn't going away anytime soon. As a result, cybercrime, such as ransomware, is on the rise.

For hackers, the internet is like handing a bank robber the vault combination. They may quickly breach a company's cyber defenses, wreaking havoc and making money in the process. There are a lot of potential victims because there are so many businesses online.

Cybercriminals have previously targeted large organizations such as governments to get secure data, hospitals to get medical records like UDI, and colleges to view student details. They knew an attack could halt these institutions, and they could afford to pay a ransom.

Small firms, on the other hand, are now the target of 71% of ransomware attacks.

Small businesses may lack the security or training necessary to protect themselves from an assault. You're more likely to be targeted if you work in finance, healthcare, or online retail.

Any small business that conducts business online keeps data or just manages its business with computers is in danger.

Potential Costs of an Attack

Ransomware has far-reaching consequences that go far beyond the ransom.

When a business is attacked, it usually has a large amount of downtime, which results in revenue loss. You may also lose consumers and new business opportunities.

Paying a ransom is sometimes the cheapest option. However, doing so contributes to a vicious circle of cybercrime targeting small firms.

Payment of a ransom does not ensure that your data will be returned. Furthermore, losing important customer, vendor, or other data could have long-term consequences for your company.

How to Protect Your Business

Ransomware is an opportunistic danger. The good news is that it can be avoided.

Several common-sense measures can be used to defend small enterprises from ransomware. Antivirus software and other basic security measures are also worthwhile investments.

You can take some security precautions to help mitigate your business' risk. Use antivirus software to scan computers on a regular basis and set up your firewall to protect against ransomware.

Employees should be educated on best practices, such as only opening trusted attachments. Backing up and archiving your business data on a regular basis is also a good idea.

Remember to update the security fixes on your operating system and filter emails to keep spam out of the hands of employees.

Employees should be given a limited amount of administrative privileges. Using two-factor authentication helps ensure that a hacked password does not reveal your data.

Ransomware can have devastating effects on your business. By taking a few precautions and developing good habits in your employees, you can mitigate the risk.