What’s your Data Worth? The Alarming Threat of Ransomware on Small Business Ransomware attacks on businesses large and small increased exponentially in 2020 and shows no signs of abating in 2021. What you need to do now to protect your business. By JENNIFER ROOK The day starts like any other. Business is looking up after a rough year living through a pandemic. With life starting to resemble some form of normalcy, you’re feeling optimistic about the future. Heck, maybe you’ll dig out those expansion plans you had in mind pre-COVID. You log into your company’s network, and suddenly, something doesn’t appear to be right. After a few reboots, you realize that something is very wrong and panic sets in. You can’t access your files – or any files for that matter. A message pops up saying that your system’s data has been encrypted. Encrypted? To get it, the text says that you must purchase a bitcoin using the provided link or else your data will be made public in a matter of hours or disappear. Questions race across your mind. How much is a bitcoin? What if your competitors see your financials? What about your customers’ data or employee information? How did this happen? RANSOMWARE ATTACKS ARE ON THE RISE According to a recent article in Forbes, the popularity of ransomware attacks has grown substantially over the past year due to the lure of potential financial gains. Today, there are now roughly 124 separate families of ransomware, with hackers becoming very skilled at hiding malicious code.
The Ransomware problem has now increased to more than $11.5 billion in payments and damages to businesses with the number of attacks up between 200%- 300% over last year.
Ransomware can be explained as malicious software or malware code that infects a businesses’ operating system rendering it useless, or the businesses’ data is “captured” and encrypted. The perpetrators then demand money from the victim for release of their data or to allow the system to work properly again, in essence holding the system for ransom. Ransomware affects everyone, from an individual to a government municipality to a large multi-billion-dollar corporation. The Chicago Tribune recently reported on a damaging ransomware attack made against the Illinois Attorney General’s office. In May, CNA Financial Corp., among the largest insurance companies in the U.S., paid $40 million in late March to regain control of its network after a ransomware attack. And most recently, the interna12
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tional hacker group DarkSide paralyzed the Colonial Pipeline Co., shutting down a 5,500-mile pipeline that carries 45% of fuel used on the East Coast. Colonial paid DarkSide $4.4 million in Bitcoin for a key to unlock its files.
TOP TARGET FOR RANSOMWARE ATTACKS: HOSPITALS, MUNICIPALITIES, AND SMALL BUSINESSES While attacks on well-known companies generate headlines, according to multiple IT research firms, it is often small and mediumsized businesses that suffer the most ransomware attacks. Prior to the pandemic, the Ponemon Institute reported that 63% of small businesses, surveyed in Fall 2019 reported they had experienced some sort of a cyber breach. Globally, ransomware on small businesses of all types increased more than 400% over 2019 with hackers’ desire for obtaining cryptocurrency, such as bitcoin, being the key motivator. Because business owners have been preoccupied with keeping their businesses open over the past year, the attention on things like ransomware has become a lesser priority, hence increasing their exposure.
