Ransomware is no longer a problem that only large enterprises need to worry about. Over the past two years, criminal groups have shifted a significant portion of their attacks toward small and mid-sized businesses — companies with 10 to 250 employees — because they represent a combination that attackers find attractive: real money to pay a ransom, and security postures that are much easier to penetrate than what a Fortune 500 company maintains.
Why Small Businesses Are Being Targeted
The economics of ransomware have changed. Early ransomware campaigns often targeted individuals or large organizations. Individuals rarely paid meaningful ransoms, and large enterprises increasingly hardened their defenses after high-profile incidents. Small businesses, by contrast, often have real revenue, limited IT resources, and security programs that were designed around a threat environment that no longer exists.
Attackers know this. They have built automated tools that scan for common vulnerabilities — unpatched systems, exposed remote desktop services, weak credentials on internet-facing applications — and they run those scans continuously. When a business is identified as a potential target, the attacker is often inside the network before any human has reviewed the initial access.
Key statistic: According to industry research, 68 percent of ransomware attacks in 2024 targeted businesses with fewer than 250 employees. The average total cost of an incident — including downtime, recovery, ransom payment, and remediation — was $1.85 million.
How a Ransomware Attack Actually Works
Understanding the mechanics of a ransomware attack matters because it clarifies where the effective defenses sit. Most businesses assume ransomware is primarily an email problem — someone clicks a link, malware runs, files get encrypted. That is one entry point, but it is far from the only one, and it is not how the most damaging attacks typically operate.
Initial Access
Attackers get in through a handful of common methods. Phishing emails carrying malicious attachments or links remain prevalent. Exposed Remote Desktop Protocol endpoints are a persistent entry point — if your business has RDP accessible from the internet with weak credentials, it is a matter of when, not if. Unpatched vulnerabilities in VPNs, firewalls, and web applications are exploited by attackers who monitor public vulnerability databases and move quickly when new disclosures are made.
Persistence and Lateral Movement
Here is the part that surprises most business owners: ransomware operators typically spend days or weeks inside a network before they deploy the ransomware payload. During that time, they are escalating privileges, identifying backup systems, mapping the network, and staging data for exfiltration. When the ransomware finally executes, it targets the systems that will cause the most disruption — and the backup infrastructure first, if it is accessible.
This is why endpoint protection alone is not sufficient. By the time ransomware is executing, the attacker has already been in your environment. The defense has to happen earlier in the chain.
Encryption and Extortion
Once the attacker is ready, they deploy the ransomware across the network simultaneously. Files are encrypted, systems become unavailable, and a ransom note appears. Increasingly, attackers also exfiltrate data before encrypting it and threaten to publish it publicly if the ransom is not paid — a tactic called double extortion that creates pressure even for businesses that have backups.
What an Effective Defense Looks Like
There is no single control that eliminates ransomware risk. Effective defense requires layering multiple controls that catch threats at different points in the attack chain.
Managed Detection and Response
Standard endpoint protection blocks known threats. Managed detection and response — specifically platforms like Huntress — actively hunts for attacker behavior that automated tools miss. This includes persistence mechanisms, credential harvesting tools, and lateral movement indicators that appear in the days or weeks before ransomware executes. MDR is the control that catches attackers during the dwell period, before they reach the point of deployment.
Patching and Vulnerability Management
A significant percentage of ransomware attacks exploit known vulnerabilities for which patches were available. Regular, systematic patching of operating systems and applications — including network devices and VPN endpoints — closes the doors that attackers are actively scanning for.
Multi-Factor Authentication
Credential theft is a primary method for lateral movement and privilege escalation. Enforcing MFA on all remote access, email, and administrative accounts significantly limits what an attacker can do with stolen credentials.
Tested Backups
A backup that has never been tested is not a backup. You need recent, tested, and ideally immutable backups that are stored separately from your primary environment. Attackers specifically target accessible backup systems. If your backups are connected to the same network they can reach, they will be encrypted along with everything else.
Email Security
DMARC, DKIM, and SPF configuration prevents attackers from spoofing your domain and impersonating your organization in phishing attacks. Email filtering that scans attachments and links in real time reduces the likelihood that a phishing email reaches your users in the first place.
What to Do If You Have Been Hit
If you suspect an active ransomware attack, the immediate priority is containment — isolating affected systems from the network to limit the spread. Do not shut systems down unless directed to by a security professional, as this can destroy forensic evidence needed for recovery. Contact your IT provider or incident response team immediately. Do not pay the ransom without first exhausting recovery options; payment does not guarantee decryption and funds criminal operations.
The practical reality is that recovery from ransomware without a functional backup is extremely difficult and expensive. Prevention and preparation are the only reliable strategies.
Taking the Next Step
If you are not confident about your current security posture, the right starting point is an honest assessment of where the gaps are. That means looking at your endpoint protection, your patch levels, your backup integrity, your remote access controls, and your email security configuration — not as a checkbox exercise, but as a genuine evaluation of your risk.
Pal Forge IT offers a free IT and security assessment for Denver businesses. We will look at your environment, identify the gaps, and give you a clear picture of your actual exposure — with no obligation attached.