Most Ransomware-as-a-Service Attacks Are Against Small Businesses—Here's How to Stay Safe

Ransomware has always been the cybercriminal’s blunt instrument, but in 2025 it has morphed into something even more alarming: a polished subscription business. On hidden Tor and I2P marketplaces, "vendors" offer fully managed extortion campaigns complete with user manuals, dashboards, and 24-hour "support."

For a few hundred dollars or a percentage of whatever the victim pays, anyone who can copy-and-paste a PowerShell string can now unleash enterprise-grade malware. That ease of entry has driven an unprecedented surge in attacks against organizations of every size, including small businesses.

This article unpacks how the ransomware-as-a-service (RaaS) economy works, why small businesses sit squarely in the crosshairs, and, most importantly, what affordable steps can keep an extortion note from landing in your inbox.

Understanding RaaS and Why It’s Booming in 2025

A Business Model, Not Just Malware

Think of a RaaS operator as a shadow-SaaS vendor. Core developers build the encryption engine, host leak sites, run negotiation chatrooms, and maintain slick affiliate portals showing live infection statistics.

Subscribers (sometimes seasoned crooks, sometimes weekend hobbyists) rent that infrastructure through low-cost monthly licenses or revenue-share deals that promise affiliates up to 90% of every ransom paid.

Payment portals automatically divvy up cryptocurrency among coders, traffickers, and initial-access brokers, turning cyber-extortion into an industrial supply chain rather than a lone-wolf crime.

Numbers Tell a Frightening Story

Reports have logged 4,198 organizations posted to data-leak sites in just the first six months of the year: a 49% jump over 2024. Diversity is exploding, too. Threat intelligence services counted 101 distinct ransomware variants circulating during 2024, an increase of 31 variants from the previous year, and have warned that affiliates now hop between "brands" to dodge sanctions and attribution. Of particular note is the increase in prevalence of remote-execution ransomware (the kind that never installs locally but encrypts files over network shares) that increased 141% between 2022 and 2024.

Money follows volume. The average ransom demand is over $400,000, while total recovery costs (legal counsel, incident response, downtime, and reputational damage) can now hover around $5.5 million per incident.

The prime target? Small businesses: 78% of ransomware attacks this year have been against small businesses.

Ever-Sharper Tactics

Generative-AI tools can churn out phishing emails that faithfully clone supplier invoices or the CEO’s writing style, short-circuiting human gut checks. CISA has found that RaaS groups can exploit and weaponize cybersecurity flaws within hours of public disclosure, faster than most firms can schedule a patch window.

Triple extortion attacks have become extremely common. In these types of incidents, gangs not only encrypt and steal data but also threaten DDoS attacks or direct harassment of customers to maximize leverage.

Build your email list, personalize campaigns, and boost sales—try Campaigner now

Why Small Businesses Are Prime Targets

Lower Defenses, Faster Payouts

Mega breaches against major brands, airlines, or hospitals dominate headlines, yet ransomware’s center of gravity is shifted decisively toward the mid-market. The median headcount of companies victimized by ransomware is just 228 employees.

Attack economics can explain cybercriminals’ focus. Smaller firms often expose unpatched VPN appliances, reuse admin passwords, and operate flat networks where one phished credential equals instant domain-wide encryption. They also tend to pay faster, as every hour of downtime threatens payroll and supplier deliveries.

Consequences That Close Doors

Small businesses incur about $127 to $427 per minute of downtime, according to a Gartner study. Things are even worse when you take into account the total costs of recovery, which can be anywhere between $120,000 and $1.24 million. These margins are often the reason why small businesses are more willing to pay out, as they simply can’t afford to absorb the costs in the same way as a larger organization.

Real-world stories put things in perspective. Knights of Old, a 158-year-old British logistics company, fell victim to a ransomware attack in late 2023. Despite maintaining cyber insurance and running staff awareness training, the firm rejected a $2.7 to 5.3 million demand, which resulted in 10,000 sensitive files being dumped online, and ultimately caused the business to enter bankruptcy. Company co-owner, Paul Abbott, told reporters he had "lost everything," while 700 employees lost their jobs.

Affordable, Practical Defenses for the RaaS Era

It’s clear that small businesses can’t afford to be complacent over the threat of RaaS: there’s no such thing as being "beneath their notice" when it comes to cybercriminals. You need to treat your business as if it’s already a target, and take proactive steps to reinforce both your defenses and your business resilience.

But what exactly can small businesses do in the face of the multi-billion-dollar RaaS industry? You can’t necessarily afford the prices of hyper-advanced, AI-driven, adaptive cybersecurity suites. But there are practical steps you can take that will make your business a tougher nut to crack, and make it easier to recover when (not if) an attack occurs.

Build Human Firewalls

Despite all the high-tech capabilities available to cybercriminals, it’s still employees clicking the wrong links that open most doors. Thankfully, the right training can drastically mitigate this vulnerability: monthly, scenario-based phishing drills, like rotating vishing (voice phishing) calls, SMS lures, and supplier-spoof tests, can slash click-through rates on suspicious links.

Treat security awareness as continuous conditioning, not an annual compliance checkbox.

Put Barriers in Front of Passwords

Credential theft appears in most RaaS affiliate playbooks. Phishing-resistant multi-factor authentication (such as FIDO keys or hardware tokens) blocks 99.9% of credential-stuffing attempts.

Introducing passkey-based authentication can be fairly simple and cost effective. Modern smartphones already include this kind of support for free.

Deploy Backups That Can’t Be Bullied

Immutable, off-line backups remain ransomware’s kryptonite, as they prevent it from encrypting or deleting them. Firms following the 3-2-1-1-0 rule (three copies, two media types, one off-site, one immutable, and zero untested restores) can resume critical operations within 48 hours on average, versus nine days for organizations that rely solely on cloud sync.

You can automate test restores so you know your backups will work on the worst day.

Patch as a Daily Habit, Not a Monthly Project

Ransomware’s ability to exploit vulnerabilities within 48 hours means "Patch Tuesday" must be "Patch Right Now and Regularly." You can use cloud-delivered vulnerability- and patch-management tools that scan and auto-apply fixes daily for a few hundred dollars per year, well within micro-business budgets when you consider the potential costs of falling victim to an attack.

Sign up for our free weekly AllBusiness.com newsletter here

Implement Micro-Segmentation to Limit Blast Radius

Flat networks let ransomware roam freely and access the sensitive parts of your systems. Logical segmentation, like separating finance servers from point-of-sale stations and guest Wi-Fi, adds speed bumps that stop malware from moving laterally. This can be enhanced with zero-trust networking to drastically reduce cyber attackers’ abilities to move within your network, as they will require authentication to move between the segments.

Have a Game-Day Playbook

A rehearsed ransomware response plan turns chaos into choreography. Even a two-page checklist covering isolation steps, alternative communications (since email may be down), legal counsel contacts, cyber-insurance hotlines, and an executive decision matrix on ransom negotiations saves crucial hours. Where in-house expertise is scarce, virtual CISO (chief information security officer) services now start around $2,000 a month, far less than post-breach consulting fees.

Use Continuous Detection, Not Signature-Based AV

Traditional antivirus is useless against the dozens of new ransomware variants appearing all the time. Endpoint detection and response (EDR) tools look for suspicious behavior, like mass file changes and unsigned driver loads, and can auto-quarantine a host. Managed detection and response (MDR) layers 24/7 human analysts on top, giving a five-person accounting firm the same eyes-on-glass coverage as a Fortune 500 SOC.

Insurance as a Seatbelt, Not a Crutch

Ransomware-specific insurance riders for $1 million of coverage can start around $1,200 to 2,000 annually, but underwriters may demand proof of multifactor authentication, backups, and an incident-response plan. Meeting those prerequisites fortifies security even if you never file a claim, and an active policy provides forensic and negotiation resources during a crisis.

Disciplined Resilience Is Key to Combat Cybercrime

RaaS has turned extortion into an on-demand commodity, flooding 2025 with pay-to-play affiliates who view small organizations as low-effort, high-yield prey. Yet the same market forces that industrialized crime also democratize defense: cloud-delivered EDR, automated patching, virtual CISOs, and affordable insurance put enterprise-grade security within reach of the leanest team.

Combine those tools with relentless employee training, immutable backups, and a rehearsed response plan, and you transform from a target of opportunity to a hardened prospect that’s resilient in the face of any attacks that occur.

In the subscription era of cybercrime, disciplined resilience is the only subscription you can’t afford to cancel.