By Nathaniel C. Gravel, CISA, CISM, CRISC
Gray, Gray & Gray, LLP
Ransomware has transformed from a relatively simple nuisance into one of the most persistent and damaging cybersecurity threats facing organizations today. Businesses of all sizes – from small local operations to multinational corporations – have fallen victim to increasingly sophisticated attacks. The threat landscape has changed dramatically, with cybercriminals adopting more targeted approaches and demanding higher ransoms than ever before.
Recent data from cybersecurity researchers indicates that ransomware attacks increased by 37% in 2024 compared to 2023. More alarmingly, the average ransom payment reached $567,000 in 2024, representing a 58% increase year-over-year. These statistics reflect not just the growing frequency of attacks but also their increasing severity and financial impact.
Small Businesses Are No Longer Flying Under the Radar
A dangerous misconception persists among small and medium-sized businesses that they’re too insignificant to attract cybercriminals’ attention. This couldn’t be further from the truth. In fact, attackers deliberately target smaller organizations precisely because they often lack robust security infrastructure and dedicated IT security teams.
According to recent research, 68% of ransomware attacks in the past year targeted businesses with fewer than 500 employees. The financial impact can be devastating, with 43% of affected small businesses reporting downtime costs exceeding the actual ransom demands. More concerning still, approximately 60% of small businesses that experience a ransomware attack close within six months due to the combined impact of recovery costs, reputational damage, and lost business.
The Rise of Ransomware-as-a-Service
One of the most significant developments in the ransomware ecosystem has been the emergence and refinement of Ransomware-as-a-Service (RaaS) models. These subscription-based services allow even technically unsophisticated criminals to deploy sophisticated ransomware attacks, dramatically lowering the barrier to entry for would-be attackers.
The RaaS market has matured considerably, with some platforms offering 24/7 technical support, customizable ransomware strains, and even money-back guarantees. In 2024, security researchers identified over 35 active RaaS operations, with some generating estimated revenues exceeding $50 million annually. This commercialization of ransomware has fueled a significant increase in attack volume and variety, making defense increasingly challenging.
Double and Triple Extortion Tactics
Ransomware operators have evolved beyond simply encrypting data. Today’s attacks frequently employ multiple extortion vectors to maximize pressure on victims. Double extortion involves threatening to leak stolen sensitive data if the ransom isn’t paid, while triple extortion adds distributed denial-of-service (DDoS) attacks or direct pressure on customers and partners.
Research from 2024 indicates that 78% of ransomware attacks now involve data exfiltration in addition to encryption, up from 70% in 2023. This evolution forces businesses to consider not just the operational impact of encrypted systems but also the regulatory and reputational fallout from data breaches. Regulations like GDPR, HIPAA or the Graham-Leach-Bliley Act face additional legal complications and potential fines, creating layered consequences beyond the ransom itself.
The Supply Chain: Expanding the Attack Surface
Supply chain attacks represent one of the most concerning trends in the ransomware landscape. By compromising a single vendor or service provider, attackers can gain access to dozens or even hundreds of downstream organizations. The 2024 surge in these attacks demonstrates how cybercriminals are becoming increasingly strategic in maximizing their impact.
Building Organizational Resilience
Despite this troubling landscape, businesses can take practical steps to build resilience against ransomware threats. Comprehensive backup strategies remain fundamental, but they must be paired with regular testing of restoration procedures and offline storage options to prevent backups themselves from being compromised.
Security awareness training has proven particularly effective, with organizations that conduct regular phishing simulations and security education reporting 73% fewer successful ransomware infections. Meanwhile, implementing zero-trust security models – where no user or system is inherently trusted, and verification is required from everyone – has shown promise in limiting lateral movement within networks when perimeter defenses are breached.
Moving Forward
Ransomware will continue to present a significant threat to businesses of all sizes for the foreseeable future. The financial incentives for attackers remain strong, and the technical barriers continue to decrease. However, by approaching the problem with a risk management mindset – focusing resources on the most critical assets and most likely attack vectors – organizations can significantly reduce their vulnerability.
The most successful defensive strategies combine technological controls with human awareness and organizational policies. By fostering a security-conscious culture, maintaining vigilant monitoring systems and developing comprehensive incident response plans, businesses can position themselves to weather this evolving threat landscape and recover more effectively when incidents do occur.
Nathaniel Gravel is a cybersecurity expert and consultant with Gray, Gray & Gray, LLP, a consulting, accounting and business advisory firm based in Canton, MA. He can be reached at ngravel@gggllp.com.