Why SMBs are hot targets for Ransomware (and how to avoid becoming a statistic)
As we come to the end of Cybersecurity Awareness Month, we’d like to shine a light on the growing threat of ransomware, particularly for small and medium-sized businesses (SMBs). These enterprises often face unique vulnerabilities that make them prime targets for cybercriminals. Understanding these risks is the first step toward effective protection and resilience against such attacks.
SMB Vulnerability to Cybercrime
Although today’s businesses of every size are busy navigating data security issues, cybercriminals know that small and medium-sized businesses (SMBs) are even more vulnerable.
There are 33.3 million small businesses in the U.S. alone, defined as having fewer than 500 employees. They comprise about 99.9% of all U.S. businesses (Small Business Administration, 2023). For cybercriminals, that’s a wide-open field of prime targets for ransomware.
Why are SMBs more vulnerable? There are several factors, including:
- Smaller IT/security staff and infrastructure
- Lack of awareness or knowledge about how to protect themselves
- A false sense of security (e.g., “criminals only target huge companies”)
- Belief they cannot afford to implement the same robust safety measures as larger firms
Some SMBs rely on consumer-grade, off-the-shelf solutions to protect their data. But SMBs deserve a better approach to protecting one of their most valuable assets—their data, and their customers’ data.
Know Your Risk
Consider these alarming statistics about the impact of cyberattacks on SMBs:
1IBM Data Breach Action Guide (2024). 2 Cobalt Top Cybersecurity Statistics for 2024. 3 IBM Cost of a Data Breach Report (2024).
Here are a few additional facts that show why it’s important for SMBs to protect their data:
- 43% of small businesses were targeted by internet criminals in 2023. Source: Embroker
- ~43% of SMBs blame their security issues on lack of training. Source: Datto’s 2023 SMB Cybersecurity Report
- 81% fell victim to some form of cyber-attack in 2023. 13% of which were ransomware. Source: Datto’s 2023 SMB Cybersecurity Report
- 48% of SMBs have experienced a cyber security incident in the past year. 25% say that have experienced more than one. Source: StationX Cyber-attacks on small businesses.
- 300,000 thousand new pieces of malware are created daily. Source: TechJury
- Globally, 30,000 websites are hacked every day. Source: TechJury
- The World Economics Forum said respondents ranked cyberattacks as the fifth largest global risk concern. Source: WEF Global Risks Report 2024
- There were 6.06 billion global malware attacks reported in 2023, an increase of 11% from the previous year. Source: Sonicwall 2024 Cyber-threat Report
The Safety Disconnect
In a recent report by Devolutions, they found that 80% of SMBs view themselves to be “well-protected” against cyber-attacks, but less that 60% are actually using tools like passwords managers, 2FA, and cybersecurity training to stay protected.
After their 2023 global ransomware survey: The Risk Perception Gap, Open Text stated:
“A majority of SMBs (90%) […] feel extremely or somewhat concerned about ransomware attacks. […] Despite concerns, there is a serious disconnect as a surprising 65% of SMBs […] either don’t believe or aren’t sure they are ransomware targets.”
Awareness Inspires Prevention
Many ransomware perpetrators try to gain access to data through human error, weak or compromised passwords, or even by attempting to get a company insider to assist them. That’s one reason that Ostra advises SMB clients to raise awareness among employees about data security. Staff who are trained, aware and committed to data privacy can provide an invaluable layer of defense against ransomware.
The Ransomware Attack that Sparked Ostra
Cybersecurity trailblazer Michael Kennedy started Ostra Cybersecurity after a ransomware attack wreaked havoc on his friend’s small business. Read the full story here.
Ostra was founded with the belief that SMBs should be able to access the robust, layered data protection tools and strategies that the world’s largest companies rely on. Ostra’s managed cybersecurity solutions offer Fortune 100-caliber, 360-degree protection that allows companies of all sizes to protect their most valuable asset—their data.
Ready to learn more about how to prevent ransomware and other cyber threats from impacting your company or your clients? Contact Ostra today.
As Your Trusted Cybersecurity Team, Ostra makes cybersecurity simple and accessible to businesses of all sizes. Ostra provides its partners and their clients with a multi-layered, comprehensive and fully managed Security as a Service.
