What Is Ransomware?

Ransomware is malicious software that encrypts your files, databases, and sometimes entire systems, making them completely inaccessible until you pay a ransom — typically in cryptocurrency — to receive the decryption key. Modern ransomware attacks often include a second extortion layer: the attackers steal your data before encrypting it and threaten to publish it publicly if you don't pay, creating pressure even if you have backups.

The impact of a ransomware attack on a business is severe. Operations halt. Employees can't access files, email, or business applications. Customer-facing systems go offline. Revenue stops. The average ransomware recovery cost for small businesses exceeds $120,000 when you factor in downtime, lost business, recovery efforts, and reputation damage. For some businesses, particularly those without current backups or incident response plans, a ransomware attack is an extinction-level event.

Preventing ransomware requires a multi-layered approach. Endpoint Detection and Response (EDR) catches ransomware before it can execute. Email security blocks the phishing emails that deliver ransomware. Regular, tested backups — stored offline or immutably — ensure you can recover without paying. Network segmentation limits how far ransomware can spread. Security awareness training reduces the chance of an employee triggering the attack. And an incident response plan ensures your team knows exactly what to do if an attack succeeds despite your defenses.