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What Is Ransomware, and Why Your SMB Is at Risk

Ransomware has become one of the most disruptive cybersecurity threats facing organizations today. While attacks on large enterprises often dominate headlines, smaller businesses are increasingly affected, and often with fewer resources to recover.

At Cyberix, we believe that knowing the basics is a powerful first step. This article breaks down what ransomware is, how it works, and what your business can do to prevent it.

What Is Ransomware?

Ransomware is a type of malicious software designed to lock users out of their data or systems until a ransom is paid, typically in cryptocurrency. Once activated, it encrypts files, leaving the victim unable to access critical information without a decryption key.

More recently, attackers have added a second layer of pressure. Before encrypting anything, they may quietly steal sensitive files, threatening to leak them if the ransom isn’t paid. This “double extortion” approach increases the urgency and stakes for businesses trying to recover.

For small to mid-sized businesses, the decision often comes down to restoring from backups or paying the ransom. Unfortunately, neither option is simple if you’re not prepared.

How Ransomware Spreads

A ransomware attack usually starts with something deceptively small. Most begin through phishing emails where a malicious link or attachment is used to gain access. In other cases, attackers exploit unpatched software, weak passwords, or exposed remote access tools like
RDP.

Once inside, the malware is deployed quietly, sometimes for days, while it encrypts files across your network. Eventually, the attack becomes visible through a ransom note that appears on-screen, along with instructions and a payment demand.

In more advanced cases, attackers include previews of stolen data or set a countdown timer to create added pressure.

Why Smaller Businesses Are Often Targeted

It’s a common myth that ransomware attackers only focus on large corporations. In fact, smaller businesses are often more vulnerable and more likely to pay, because they may not have strong IT defenses or a clear recovery plan.

Many small companies:

  • Delay important software updates
  • Lack regular employee security training
  • Have outdated or incomplete backup systems
  • Rely on a single IT person to manage everything

These gaps make ransomware attacks easier to execute, and harder to recover from.

What’s at Risk?

Ransomware can affect almost any file or system your business relies on. Common targets include:

  • Financial records
  • Customer databases
  • Internal emails and documents
  • Business contracts
  • Regulatory or compliance-related data

If your business works with sensitive or regulated information, the risks go beyond downtime. A ransomware event could trigger compliance investigations, legal action, or loss of client trust.

How to Reduce Your Risk

Preventing ransomware doesn’t require a massive security overhaul,it starts with the right habits and systems.

Training is key. Employees should know how to spot phishing emails, avoid suspicious downloads, and report unusual activity. Human error is still the most common entry point for ransomware.

Access control matters. Not every employee needs access to every system. Limiting permissions based on roles (least privilege) helps prevent malware from spreading if one account is compromised.

Keep systems up to date. Many ransomware attacks exploit old, well-known vulnerabilities. Regularly patching operating systems and software is one of the simplest and most effective defenses.

Protect your endpoints. Use modern antivirus and endpoint detection software to spot threats early. Combine that with firewalls and DNS filtering to block suspicious activity before it reaches users.

Backups are essential. Having recent, encrypted, and offline backups allows you to recover without paying a ransom. Just as important, test those backups regularly to make sure they actually work.

Have a plan. An incident response plan ensures you know what to do and who to call if something goes wrong. The faster you isolate and contain an infection, the better your outcome will be.

What If It Happens?

If your business is hit by ransomware, staying calm and acting quickly can make all the difference.

Avoid paying the ransom unless absolutely necessary, it’s not a guaranteed solution and can make you a repeat target. Instead, disconnect infected systems, contact your cybersecurity provider, and begin containment and recovery.

If sensitive data was affected, you may also need to notify customers, partners, or regulators,
depending on the nature of the breach.

How Cyberix Can Help

Cyberix works with businesses of all sizes to strengthen their defenses and respond effectively
to ransomware and other cyber threats. Our team can help you:

  • Build a layered security strategy
  • Implement Zero Trust and access control best practices
  • Design reliable backup and disaster recovery plans
  • Train employees to recognize and prevent attacks
  • Respond quickly through our managed detection and response (MDR) services

Whether you’re preparing for threats or dealing with one right now, we’re here to help. Contact us today.