Ransomware is malicious software that encrypts company data and only releases it in return for a ransom.
Cybercriminals are attacking businesses of all sizes with ransomware, but SMBs are a prime target. The Global Ransomware Report 2019 reveals numerous trends that particularly affect SMEs:
- Ransomware attacks are ubiquitous. The number of ransomware attacks against SMEs is increasing. 85 percent of MSPs report attacks against SMEs in the last two years, up from 79 percent in 2018. In the first half of 2019 alone, 56 percent of MSPs surveyed reported attacks against SME customers.
- The threat of ransomware is not always taken seriously. 89 percent of MSPs report that SMBs should be “very concerned” about the threat of ransomware. However, only 28 percent of MSPs say SMEs are actually “very concerned.”
- The costs are considerable. 64 percent of MSPs confirm a loss of business productivity among their SMB customers after a successful ransomware attack, and 45 percent report business-threatening downtime for their customers. The costs for downtime of the IT systems amount to an average of 121,500 euros, which corresponds to an increase of more than 200 percent compared to the figures from the previous year (2018: 40,500 euros). The report also shows that the costs of downtime are over 23 times higher than the cyber criminals' ransom demands, which average around EUR 5,070. However, there is no guarantee that the data will be released again if the ransom is paid.

One of the simplest and most effective measures against ransomware is underutilized. MSPs report that 2-factor authentication (2FA) is used in only 60 percent of email clients and 61 percent of password managers, although the majority of MSPs (67 percent) say phishing emails are the primary cause for successful ransomware attacks against SMEs.
Business Continuity & Disaster Recovery (BCDR) solutions remain the most efficient way to limit the impact of a ransomware attack, according to the report. 92 percent of MSPs surveyed say customers with BCDR solutions in place are much less likely to experience long downtime following a ransomware attack.
Additionally, four out of five MSPs report that customers with BCDR solutions have fully recovered from an attack in 24 hours or less. For customers without BCDR tools, this was achieved in less than one in five cases. MSPs should use their position as IT consultants to educate SMBs on how to protect themselves from a ransomware attack. This includes employee training measures and the tools to be used.
“The global ransomware report from Datto confirms our assessment: Like our colleagues around the world, we as managed service providers assume that the cyber threat from ransomware will by no means decrease, but will tend to continue to increase,” says Michael Nist, Managing Director from Topackt IT Solutions GmbH, an IT service provider from Speyer in Rhineland-Palatinate.
Michael Nist continues:
“High-profile cases of companies and institutions attacked in recent months show how unscrupulous cyber criminals operate and how they are continually developing their ransomware weapons. Emotet is an example of this. Small and medium-sized companies are particularly affected by this development, as a successful ransomware attack can mean their economic end due to the follow-up costs caused by the downtime. Point solutions do not provide protection, so as an MSP we work closely with our customers to strengthen cyber security with a layered approach and the right mix of technologies. Ensuring business continuity is the focus.”
MSPs themselves are also a prime target for ransomware attacks:
Four out of five MSPs say they are increasingly being targeted by cybercriminals, according to the Ransomware Report. However, only half of MSPs can access external help to support them in the event of a large-scale attack on them or their customers. However, sixty percent of MSPs have cyber insurance to cover the costs associated with a ransomware attack.
“MSPs should take the lead with their SMB customers in preparing for and responding to ransomware attacks,” said Ryan Weeks, chief information security officer at Datto. “Before they can do that, they must protect themselves and examine their own cyber security. MSPs should apply two-factor authentication (2FA) to every technology they use on their premises and with their customers. At a time when cyber attacks have become commonplace, 2FA is one of the most effective controls to reduce the likelihood of a successful attack.”
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