Ransomware is a growing threat for all businesses but, as the victim in over 40% of all cyberattacks, it is small enterprises that have recently become the primary target for cybercriminals. Many small businesses lack the expertise to defend themselves against the dramatic increase in ransomware attacks, and a malicious infiltration can be harder and more costly for them to handle. After experiencing a major cyberattack, almost two thirds of small companies are forced to close due to the cost of recovery, interruption to operations and the resulting damage to their reputation. As a result, small and medium-sized enterprises (SMEs) are becoming more proactive with their security measures. By reducing the company’s attack surface, ensuring all staff are trained to spot potential intrusions, and, when necessary, outsourcing cybersecurity to a managed provider, small enterprises can protect themselves from the growing threat of ransomware.
Outsource IT Operations
The telecommunications company Verizon reported that the number of intrusions involving ransomware increased by 37% for all businesses in 2025 but, of these attacks, it was a component in almost 90% of breaches in SME’s, over twice as many than in larger organizations. Small businesses are facing the same threats as large enterprises, however, with smaller budgets and fewer skilled IT staff they are more vulnerable to a successful attack and are viewed by hackers as more likely to pay in order to continue their operations. A practical solution for improving defence against ransomware is to outsource operations to a security compliance vendor that will proactively monitor for risks and manage IT security. With additional security tools and expertise, it is possible to stop ransomware attacks and neutralize hackers before encryption begins causing damage to the company’s system.
Establish Security Protocols
A small business without a dedicated IT department is more vulnerable to ransomware but by establishing a culture of security, every employee can take some responsibility for protecting the company’s systems and networks. Everyone involved in a small business from the owner to their support staff is vulnerable to email and phone scams. These phishing attempts are a common way to introduce malicious links and attachments that then allow hackers to bypass any security systems and initiate a ransomware attack. As well as formulating an incident response plan and sharing it with other employees, regular reminders and staff training sessions are a practical and effective way for small businesses to build resilience against cyberthreats, even on a small budget.
Reduce the Attack Surface
With regular training and updates, employees can help to identify vulnerabilities and reduce the firm’s attack surface. This describes the digital and physical points of entry into a company’s IT system including websites, operating systems, laptops and phones. To reduce the risk of ransomware attack, these should all be strengthened with multi-factor authentication and endpoint protection tools that secure devices from cyberattack. Disabling risky settings that allow remote interaction with computers and promptly applying updates or patches to software will help to fix vulnerabilities. In the event of a successful ransomware attack, isolated and secure back ups of the company’s data will be invaluable in restoring systems without having to respond to a hacker’s demands.
Insure Against Malicious Intrusion
Despite the rise in ransomware attacks on SMEs, only 31% of micro businesses in the UK have a formal response plan for use in the event of any type of cyberattack. As well as raising awareness of the risks that the small businesses face, more insurance companies are offering robust protection to increase cyberresilience. When a business falls prey to ransomware or other cyberattack, they can claim for lost profits and extra expenses incurred. In the immediate aftermath of an infiltration, they also gain access to the services of IT specialists and forensic investigators who will help to contain the problem, recover lost data and carry out in-depth research into the source of the attack.
Although small businesses have become increasingly vulnerable to ransomware attacks, they often lack the resources to protect themselves from cyberthreats. As well as identifying internal vulnerabilities and training to staff to recognise potential attacks, SMEs can outsource their cybersecurity to external expertise and, in the event of an incident, claim insurance against financial losses.