Ransomware has evolved from a relatively straightforward cyberattack into one of the most disruptive threats facing businesses today. What once involved criminals encrypting files and demanding payment has become a sophisticated operation that can shut down businesses, expose sensitive information, and disrupt entire networks of customers and suppliers.

Perhaps even more concerning is that businesses no longer need to be directly attacked to experience the consequences. As organizations increasingly rely on third-party vendors and vendors becoming the major target for cybercriminals, ransomware incidents are growing in numbers and the impact is exponential.

Ransomware Is Not Slowing Down

According to Verizon’s 2026 Data Breach Investigations Report (DBIR), ransomware was involved in 48% of breaches analyzed, which has increased year over year and Check Point Research identified 2,122 victims listed on ransomware groups’ data leak sites during the first quarter of 2026, more than double the 977 recorded during the first quarter of 2024. The rise in these types of statistics illustrate the sustained scale of ransomware activity.

Ransomware has also evolved into a business model for cybercriminals. Through Ransomware-as-a-Service (RaaS), criminal organizations provide ransomware tools and infrastructure to affiliates who carry out attacks. This model lowers the technical barriers to entry, allowing individuals with limited cybersecurity expertise to launch increasingly sophisticated attacks. As a result, more cybercriminals can participate in ransomware operations, often relying on social engineering, stolen credentials, and poor cybersecurity practices to gain access to business systems. This makes everyday security weaknesses, such as employees falling for phishing emails, weak passwords, and unpatched software, even more attractive targets.

For small and medium-sized businesses (SMBs), the concern is particularly significant. Limited IT resources, aging systems, and competing operational priorities create opportunities for attackers. Cybercriminals do not necessarily target businesses because they are large or well-known. Often, they look for organizations where gaining access will be easiest.

The Growing Threat from Third-Party Vendors

One of the most important developments in cybersecurity is the growing role of third-party vendors in security incidents. How many outside organizations does a typical business depend on?  IT service providers, cloud hosting companies, payroll processors, accounting platforms, customer management systems, and document storage providers are just a few that many businesses leverage.  All these common solution providers store personal information (PI) and confidential information and is why they are the ideal target for a Ransomware attack.  A successful attack on a single vendor gives cybercriminal access to multiple businesses’ data.

When a vendor experiences a ransomware attack, the consequences can extend far beyond that vendor’s operations. Customer data may be stolen, essential services may become unavailable, and businesses relying on those services may face operational disruptions.

In some cases, attackers exploit a vendor’s privileged access or compromised software to reach additional organizations. A single compromised provider can potentially expose multiple customers.

This creates an important distinction: A business can have strong internal cybersecurity practices and still experience serious consequences from a vendor’s ransomware incident.

Vendor management is therefore no longer a procurement or contractual responsibility. It must be part of an organization’s ongoing cybersecurity and risk management strategy.

How Do Ransomware Attacks Commonly Happen?

Despite the sophistication of modern ransomware operations, many attacks begin with familiar security weaknesses.

Sophos’ State of Ransomware 2025 report identified several common technical root causes among organizations experiencing ransomware attacks:

1. Exploited software vulnerabilities (32%)

Attackers identify weaknesses in operating systems, firewalls, remote access tools, and other software. When security updates are not applied promptly, these vulnerabilities can provide an entry point into business networks.

2. Compromised credentials (23%)

Stolen usernames and passwords allow criminals to access legitimate accounts. Credentials may be obtained through phishing, previous data breaches, password reuse, or other methods. Once inside, attackers may appear to be authorized users.

3. Malicious emails (19%) and phishing (18%)

Employees may receive convincing emails containing malicious attachments, links, or requests to enter login credentials. Increasingly sophisticated social engineering makes these messages harder to distinguish from legitimate communications.

Once attackers gain access, they may spend time exploring the network, stealing credentials, escalating privileges, and locating valuable information. They may also attempt to disable security tools or compromise backups.

The final stage often involves encrypting business files and demanding payment for their restoration.

Encryption is no longer the only objective. Many ransomware groups steal sensitive information, threatening to publish it unless the organization pays. This practice, commonly called double extortion, creates additional pressure even when reliable backups are available.

What Can Businesses Do to Reduce Their Risk?

Although ransomware cannot be eliminated, businesses can take meaningful steps to reduce their exposure without making significant investments in new technology.

Keep systems updated. Regularly patch operating systems, firewalls, applications, and remote access tools. Prioritize vulnerabilities that are actively being exploited.

Require multifactor authentication (MFA). MFA adds an important security layer to email, cloud applications, remote access, and administrative accounts, making stolen passwords less useful to attackers.

Provide recurring employee training. Employees should understand how to recognize phishing, suspicious attachments, fraudulent login requests, and social engineering. Training should be ongoing rather than a once-a-year exercise.

Maintain and test backups. Keep protected backups that attackers cannot easily modify or delete. Test restoration procedures to ensure critical systems can be recovered.

Evaluate third-party vendors. Understand which vendors access sensitive data or critical systems. Ask about their security practices, incident response capabilities, and notification procedures. Reassess higher-risk vendors periodically rather than relying solely on an initial review.

Develop an incident response plan. Establish clear responsibilities and procedures for responding to a ransomware incident, including when a third-party provider is affected. Knowing who to contact and what actions to take can significantly reduce confusion during an emergency.

Cybersecurity Must Extend Beyond Your Business

Ransomware continues to evolve, and the growing dependence on third-party providers means businesses must think beyond their own networks when evaluating cybersecurity risks.

The encouraging news is that many effective safeguards are achievable for SMBs. Regular updates, employee awareness, strong authentication, reliable backups, vendor oversight, and incident response planning all contribute to reducing exposure.

Businesses do not need to eliminate every possible risk to make meaningful progress. They need to understand where their vulnerabilities exist, including those introduced through third-party relationships, and take consistent steps to address them.

Ransomware preparedness is no longer just about protecting your systems. It is about understanding and managing the risks across your entire business ecosystem.