Small Businesses Suffer Most From Big Ransomware Attacks

Mitigating measures to ransomware attacks, such as cyber insurance, can limit cascading effects.

Many small business owners think ransomware attacks only impact large businesses, but these hacks, even if targeting Fortune 500 companies, regularly result in cascading disruptions that are felt the most by small businesses.

Over the July Fourth weekend, the software company Kaseya fell victim to such a ransomware attack. Ransomware is a malicious program that encrypts a user’s data so that they cannot access it, effectively holding a person’s information and documents for ‘ransom.’ The ransomer who uploaded this program then gives the user two options: pay and have their data returned, or refuse and see it lost forever.

Big Impact on Small Business

These ransomware attacks can greatly hinder small businesses, potentially to the point of closing shop for good. Ransomers can target large organizations that supply digital services to other companies, putting their information in jeopardy or shutting down whatever valuable service the supplying organization yields.

After receiving information about an incoming threat to their products, Kaseya shut down the software in question. But this spread to affect more than just Kaseya’s 50 direct customers. Those 50 companies are distributors who spread Kaseya’s services across the country to small businesses.

Of the thousands of businesses that use Kaseya’s designs, 800 to 1,500 were harmed by this massive shutdown. Vital store functions like opening cash registers were undoable and stores suffered financially as a result. Though losing store hours is preferable to forfeiting financial documents, the situation brings to light the greater risks involved in being a small business owner.

Though Kaseya was able to react quickly, many small businesses still suffered. There is also no guarantee the next time such an attack occurs, it will come with a warning. Reducing risk completely is impossible, but there are measures you can take and services you can employ to protect yourself and your companies.

Preventative Measures to Consider

Implement software to continually scan for security breaches and alert you of incoming threats.  Make sure to continuously install “patches” whenever they become available. 
Utilize cloud storage to ensure you have duplicates of essential files. This makes it more difficult to hold valuable information hostage.
Protect key information with Multi Factor Authentication (MFA). Bad actors are looking for the path of least resistance. MFA adds a layer of protection that might deter a hacker from proceeding. 

Ransomware Attacks Recovery

Even with these preventative measures, recovering from a ransomware attack is a notoriously difficult process for small businesses. Often, businesses that suffer a claim are not sure what their first step should be, let alone how to put together a framework for a full recovery. Having the proper insurance in place not only helps a small business make a full financial recovery, but the coverage also comes with a claim support team that provides the vendors required to resolve the matter quickly.

Remember, the insurance company’s interests are aligned with yours. The faster they get you back up and running, the less they will have to pay.  

At Fortside, we help clients purchase cyber insurance that fits their needs so that when you experience an attack, you can get back on your feet swiftly and smoothly.

 

If you have questions about cyber insurance or would like more insight on what coverage would be best for your specific needs, get in touch.