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What is
ransomware?

Ransomware is the digital equivalent of someone changing the locks on your business and demanding a ransom for the keys. It scrambles your files so you can't use them, then asks for payment to unlock them. Here's how it gets in, what it really does, and how to make your business a hard target.

Applies to: Every business Read: ~5 min Level: Non-technical
Quick answer

Ransomware is malicious software that locks (encrypts) your files and demands payment to release them — often stealing a copy first to pressure you into paying. It usually gets in through a phishing email, a stolen login, or an unpatched system. Your strongest protection is layered: backups you've actually tested, MFA, prompt patching, and staff awareness.

HOW IT GETS IN

The usual front doors.

Ransomware rarely kicks the door down — it slips in through everyday gaps:

One important twist: modern ransomware gangs often steal a copy of your data first before locking anything — a tactic known as "double extortion". Even if you can restore from backup, they threaten to leak your data unless you pay. That's why prevention matters as much as recovery.

WHAT IT ACTUALLY DOES

From one click to a stopped business.

Once it's inside, ransomware moves quickly and quietly:

The result is that work grinds to a halt — no files, no systems, no trading. And paying is risky: it funds crime, it doesn't guarantee you'll get your data back, and the "decryption" tools attackers hand over are often slow or incomplete.

WHY BACKUPS ARE EVERYTHING

Your ticket out without paying.

A tested, protected backup is what lets you recover without paying a cent — you simply restore your files and get back to work. The key words are tested and protected. Ideally your backup is kept offline or "immutable" so ransomware can't reach in and scramble it too. But a backup only counts if it actually works when you need it. Untested backups have a nasty habit of failing at the worst possible moment — the day you finally need them. Restoring from backup should be something you've practised, not something you're trying for the first time in a crisis.

HOW TO PROTECT YOUR BUSINESS

Layers that make you a hard target.

No single control stops everything. Stacked together, they make you far harder to hit:

  1. Tested backups you can actually restore fromKeep protected, offline or immutable backups — and regularly practise restoring so you know they work.
  2. MFA on every accountMulti-factor authentication stops a stolen password becoming a stolen business.
  3. Keep software patched and up to dateApply updates promptly to close the known weaknesses attackers rely on.
  4. Limit administrator accessThe fewer accounts with the "keys to everything", the less damage an intruder can do.
  5. Train staff to spot the phishing that starts most attacksYour people are the first line of defence — a well-trained team catches the emails that get past the filters.
  6. 24/7 monitoring to catch an intruder earlyRound-the-clock monitoring spots an attacker moving through your network before they can pull the trigger.

These measures line up closely with Australia's Essential Eight — the government-backed baseline of practical controls that stops the vast majority of attacks. It's a sensible framework to measure your business against.

Should you pay the ransom? Almost never. Paying funds crime, offers no guarantee you'll get your data back, and marks you as a payer for next time. Wherever possible, report it and recover from backups instead — and get expert help before making any decision. If you're hit: disconnect affected devices from the network, don't rush to pay, call your IT or security team straight away, and report it to ReportCyber at cyber.gov.au.
BE A HARD TARGET

If ransomware hit tomorrow, could you recover?

The best time to check your defences is before you need them. Our free IT Health Check reviews the fundamentals that decide whether a ransomware attack is a bad day or a business-ending one — your backups, patching, MFA and monitoring — and shows you exactly where to shore things up.

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