Ransomware Explained: What It Is and How to Protect Your Business

February 12, 2026

The way we work has changed. Cloud platforms. Remote teams. Shared documents. Always-on access.

It’s made businesses faster and more flexible, but it’s also created opportunities for cybercriminals. And one of the biggest threats organisations face today is ransomware.

You’ve likely seen it in the news: companies locked out of their own systems, operations halted overnight, sensitive data leaked online. But ransomware isn’t just a headline problem for global enterprises. It affects growing businesses every week.

So what actually is ransomware? How does it work? Why has it become so aggressive? And most importantly, how do you protect your business from it?

We’ll discuss:

  • What is ransomware
  • How does ransomware work?
  • How has ransomware evolved?
  • Lessons learned from real-world ransomware attacks 
  • How to protect your business from ransomeware attacks
  • What is ransomware

Let’s break it down. 

What Is Ransomware?

Ransomware is a type of malicious software that blocks access to your systems or data and demands payment to restore it.

In most cases, it works by encrypting your files. That means your documents, databases, and systems are scrambled into unreadable code. When you try to open them, you can’t. Instead, you see a message from the attacker demanding a ransom, often in something like cryptocurrency, in exchange for a decryption key.

But it doesn’t stop there.

Modern ransomware attacks often involve data theft first, encryption second. Criminals quietly break in, copy sensitive data, and then lock your systems. That way, even if you restore from backups, they can still threaten to publish confidential information unless you pay.

For businesses, this creates two layers of pressure:

  • Operational disruption
  • Reputational and legal risk

And here’s the uncomfortable truth: paying the ransom doesn’t guarantee your data will be restored or deleted from the attacker’s possession.

Ransomware isn’t just about locked files. It’s about leverage. Attackers create disruption and urgency, then use it to force a decision.

That’s why understanding how it works is critical.

How Does Ransomware Work?

Ransomware attacks don’t usually start with dramatic system failures. They start quietly.

In many cases, the entry point is surprisingly simple:

  • A phishing email that looks legitimate
  • A fake invoice attachment
  • A compromised password
  • An unpatched vulnerability in software
  • Remote access left exposed to the internet

All it takes is one click, one weak password, or one outdated system.

Once inside, attackers typically don’t trigger the encryption straight away. First, they explore.

They map your network. They identify critical systems. They look for backups. They escalate privileges to gain admin-level access.

This stage can last days, sometimes weeks, without being detected.

Only when they understand your environment do they deploy the ransomware payload.

At that point, files are encrypted rapidly across servers, endpoints, and sometimes cloud storage. Employees arrive at work to find systems inaccessible and a ransom note on the screen.

In more advanced attacks, data is exfiltrated before encryption even begins. That’s how “double extortion” works: pay to unlock your systems, and pay again to prevent data from being published.

The speed of modern ransomware is what makes it so damaging. By the time you know it’s happening, the disruption has already begun.

Which is why prevention and early detection matter far more than reaction.

How Has Ransomware Evolved?

Ransomware used to be opportunistic.

Early attacks were basic. A single computer is infected. Files encrypted. A relatively small payment was demanded. In some cases, attackers didn’t even have reliable decryption tools.

That’s not what we’re dealing with today.

Modern ransomware is organised, professional, and strategic.

Many attacks are now carried out by structured criminal groups operating like businesses. They have help desks. Negotiators. Revenue targets. Even “Ransomware-as-a-Service” models, where developers lease their malware to affiliates in exchange for a cut of the profits.

The tactics have evolved, too.

  • From single-layer to double extortion: Attackers now steal data before encrypting it. Even if you restore from backup, they can threaten to leak sensitive information publicly.

  • From random targeting to strategic targeting: Instead of casting a wide net, criminals now research businesses in advance, identifying revenue size, industry, insurance coverage, and potential payout.

  • From disruption to maximum pressure: Attackers aim to hit what hurts most: operational systems, finance platforms, supply chain software. The goal is to create urgency and force fast decisions.

The shift to remote and hybrid working accelerated this evolution. More cloud platforms. More remote access points. More identity-based vulnerabilities. The attack surface expanded, and criminals adapted quickly.

Today, ransomware is no longer just a malware problem. It’s a business disruption strategy.

Which brings us to the most important question: what can we learn from organisations that have already been through it?

Lessons Learned From Real-World Ransomware Attacks

Looking at actual ransomware incidents teaches us where businesses go wrong and what they can do better. Here are some real examples and the big takeaways from each.

1. Critical Infrastructure Can Be Paralysed: Colonial Pipeline (2021)

In May 2021, the DarkSide ransomware group hit Colonial Pipeline, a major U.S. fuel pipeline operator. The attack forced the company to shut down operations, triggering fuel shortages and panic buying along the U.S. East Coast. Colonial ultimately paid a $4.4 million ransom to regain control of systems.

  • Lesson: Ransomware can escalate from a cybersecurity breach into a national supply chain crisis. Preparedness and segmented access controls are essential: especially for operational technology and critical infrastructure.

2. Supply Chains Get Dragged Down: Kaseya VSA (2021)

In July 2021, the REvil gang exploited vulnerabilities in Kaseya’s VSA remote management software, infecting MSPs and over 1,000 downstream businesses. The attackers demanded tens of millions in ransom for a universal decryptor.

  • Lesson: Third-party tools and service providers can become attack catalysts. Protecting your tech ecosystem means extending security policies and monitoring beyond your own network: into partners and software you depend on.

3. City Governments Can Be Held Hostage: Baltimore (2019)

The City of Baltimore was hit by the RobinHood ransomware, taking down municipal systems, including court records and public services, for weeks. Recovery cost the city $18 million, far more than the ransom demand.

  • Lesson: Ransom payments are rarely the largest cost. Downtime, manual workarounds, and recovery overheads typically dwarf the ransom itself. Resilience planning matters.

4. Personal Data Can Be Exposed: Kido International (2025)

In 2025, Kido International, an early-years education provider, suffered a ransomware attack exposing sensitive data of about 8,000 children and staff. Criminals leaked personal information online and demanded payment, prompting guidance from the UK’s National Cyber Security Centre.

  • Lesson: Ransomware isn’t just about encrypted files: data theft and privacy risk are now common. Protecting sensitive information with robust access control and encryption at rest limits the long-term impact of breaches.

State Services Disrupted: Nevada (2025)

A ransomware attack on Nevada’s state systems was ongoing for months before detection, affecting driver licensing and background check services. The incident cost around $1.5 million to recover, and no ransom was paid.

  • Lesson: Rapid detection and response can significantly reduce damage. Sophisticated monitoring and centralised cybersecurity operations mean attacks are found before they go deep.

What These Cases Teach Us

Across very different industries, from energy and local government to education and state services, common themes emerge:

  • Preparation beats reaction: Plans and response rehearsals dramatically reduce impact.

  • Backups aren’t enough alone: If attackers compromise backup systems, recovery becomes much harder.

  • Third parties are part of your risk surface: MSPs, partners, and SaaS tools all need security oversight.

  • Data protection matters: Beyond service availability, data privacy and compliance risk is a core business issue.

Understanding these real ransomware cases isn’t about fear: it’s about realising how sophisticated the threat has become and what proactive steps actually make a difference.

How to Protect Your Business from Ransomware

If ransomware has evolved, your defences need to evolve too.

Protection isn’t about one tool. It’s about layers. The businesses that recover fastest, or avoid attacks entirely, tend to have a few core controls in place.

Here’s what actually makes a difference.

1. Lock Down Access

Most ransomware attacks begin with compromised credentials or exposed remote access.

Start with:

  • Multi-Factor Authentication (especially for admin accounts)
  • Removing shared logins
  • Strong password policies
  • Restricting RDP and remote access exposure
  • Regularly reviewing privileged access

If attackers can’t move freely through your systems, they can’t escalate the damage.

Identity is your first line of defence.

2. Patch Relentlessly

Unpatched vulnerabilities are one of the easiest entry points.

Make sure:

  • Operating systems are up to date
  • Third-party software is patched regularly
  • Firewalls and network devices are updated
  • End-of-life systems are phased out

Attackers actively scan for known vulnerabilities. Patch management closes obvious doors.

3. Protect and Test Your Backups

Backups are essential, but only if they work when you need them.

Best practice includes:

  • Offline or immutable backups
  • Separation from primary network credentials
  • Regular restoration testing
  • Clear recovery time objectives

If you can restore quickly and confidently, ransom demands lose power.

4. Strengthen Endpoint and Email Security

Most attacks still start with phishing. Layer your protection:

  • Advanced email filtering
  • Endpoint detection and response (EDR)
  • Anti-malware with behavioural monitoring
  • Blocking suspicious file types

Technology reduces risk, but it doesn’t eliminate it entirely.

5. Train Your People

Security awareness isn’t a one-off workshop. Ongoing training helps staff:

  • Spot phishing attempts
  • Question unexpected attachments
  • Report suspicious activity quickly
  • Understand social engineering tactics

A vigilant employee can stop an attack before it starts.

6. Have a Clear Incident Response Plan

When ransomware hits, time matters. Your plan should define:

  • Who leads the response
  • How systems are isolated
  • Who communicates with customers and stakeholders
  • When legal and cyber insurers are notified
  • Decision-making around ransom payments

If decisions are made under pressure without a framework, mistakes happen. Preparation reduces panic.

The Bigger Picture

Ransomware protection isn’t just about prevention. It’s about resilience.

Can your business continue operating if systems go offline? Can you detect abnormal behaviour early? Can you restore without negotiation?

The strongest organisations don’t rely on a single security tool. They build layered, proactive security strategies aligned to business risk.

Because ransomware isn’t slowing down, but it can be managed.

Final Thoughts

Ransomware isn’t a distant, abstract threat anymore. It’s a regular part of the risk landscape for modern businesses.

And it doesn’t just target global enterprises. In many cases, growing organisations are more attractive: large enough to pay, but not always mature enough to defend themselves properly.

The important thing to remember is this: ransomware isn’t inevitable.

Most successful attacks rely on common gaps: weak access controls, unpatched systems, poor visibility, untested backups, or a lack of preparation. Close those gaps, and you dramatically reduce your exposure.

Start by understanding where your vulnerabilities are. Review your access controls. Test your backups. Strengthen monitoring. Train your people. Build a response plan you’re confident in.

Ransomware feeds on disruption and urgency. Resilient businesses remove both.

And in a world where digital operations are central to growth, resilience is about protecting your ability to operate, serve customers, and move forward without interruption.

Write to us,
we will get back to you soon

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Ransomware Explained: What It Is and How to Protect Your Business

February 12, 2026

Learn how ransomware attacks happen, what recent real-world cases teach us, and how to protect your business with stronger security and response planning.

The way we work has changed. Cloud platforms. Remote teams. Shared documents. Always-on access.

It’s made businesses faster and more flexible, but it’s also created opportunities for cybercriminals. And one of the biggest threats organisations face today is ransomware.

You’ve likely seen it in the news: companies locked out of their own systems, operations halted overnight, sensitive data leaked online. But ransomware isn’t just a headline problem for global enterprises. It affects growing businesses every week.

So what actually is ransomware? How does it work? Why has it become so aggressive? And most importantly, how do you protect your business from it?

We’ll discuss:

  • What is ransomware
  • How does ransomware work?
  • How has ransomware evolved?
  • Lessons learned from real-world ransomware attacks 
  • How to protect your business from ransomeware attacks
  • What is ransomware

Let’s break it down. 

What Is Ransomware?

Ransomware is a type of malicious software that blocks access to your systems or data and demands payment to restore it.

In most cases, it works by encrypting your files. That means your documents, databases, and systems are scrambled into unreadable code. When you try to open them, you can’t. Instead, you see a message from the attacker demanding a ransom, often in something like cryptocurrency, in exchange for a decryption key.

But it doesn’t stop there.

Modern ransomware attacks often involve data theft first, encryption second. Criminals quietly break in, copy sensitive data, and then lock your systems. That way, even if you restore from backups, they can still threaten to publish confidential information unless you pay.

For businesses, this creates two layers of pressure:

  • Operational disruption
  • Reputational and legal risk

And here’s the uncomfortable truth: paying the ransom doesn’t guarantee your data will be restored or deleted from the attacker’s possession.

Ransomware isn’t just about locked files. It’s about leverage. Attackers create disruption and urgency, then use it to force a decision.

That’s why understanding how it works is critical.

How Does Ransomware Work?

Ransomware attacks don’t usually start with dramatic system failures. They start quietly.

In many cases, the entry point is surprisingly simple:

  • A phishing email that looks legitimate
  • A fake invoice attachment
  • A compromised password
  • An unpatched vulnerability in software
  • Remote access left exposed to the internet

All it takes is one click, one weak password, or one outdated system.

Once inside, attackers typically don’t trigger the encryption straight away. First, they explore.

They map your network. They identify critical systems. They look for backups. They escalate privileges to gain admin-level access.

This stage can last days, sometimes weeks, without being detected.

Only when they understand your environment do they deploy the ransomware payload.

At that point, files are encrypted rapidly across servers, endpoints, and sometimes cloud storage. Employees arrive at work to find systems inaccessible and a ransom note on the screen.

In more advanced attacks, data is exfiltrated before encryption even begins. That’s how “double extortion” works: pay to unlock your systems, and pay again to prevent data from being published.

The speed of modern ransomware is what makes it so damaging. By the time you know it’s happening, the disruption has already begun.

Which is why prevention and early detection matter far more than reaction.

How Has Ransomware Evolved?

Ransomware used to be opportunistic.

Early attacks were basic. A single computer is infected. Files encrypted. A relatively small payment was demanded. In some cases, attackers didn’t even have reliable decryption tools.

That’s not what we’re dealing with today.

Modern ransomware is organised, professional, and strategic.

Many attacks are now carried out by structured criminal groups operating like businesses. They have help desks. Negotiators. Revenue targets. Even “Ransomware-as-a-Service” models, where developers lease their malware to affiliates in exchange for a cut of the profits.

The tactics have evolved, too.

  • From single-layer to double extortion: Attackers now steal data before encrypting it. Even if you restore from backup, they can threaten to leak sensitive information publicly.

  • From random targeting to strategic targeting: Instead of casting a wide net, criminals now research businesses in advance, identifying revenue size, industry, insurance coverage, and potential payout.

  • From disruption to maximum pressure: Attackers aim to hit what hurts most: operational systems, finance platforms, supply chain software. The goal is to create urgency and force fast decisions.

The shift to remote and hybrid working accelerated this evolution. More cloud platforms. More remote access points. More identity-based vulnerabilities. The attack surface expanded, and criminals adapted quickly.

Today, ransomware is no longer just a malware problem. It’s a business disruption strategy.

Which brings us to the most important question: what can we learn from organisations that have already been through it?

Lessons Learned From Real-World Ransomware Attacks

Looking at actual ransomware incidents teaches us where businesses go wrong and what they can do better. Here are some real examples and the big takeaways from each.

1. Critical Infrastructure Can Be Paralysed: Colonial Pipeline (2021)

In May 2021, the DarkSide ransomware group hit Colonial Pipeline, a major U.S. fuel pipeline operator. The attack forced the company to shut down operations, triggering fuel shortages and panic buying along the U.S. East Coast. Colonial ultimately paid a $4.4 million ransom to regain control of systems.

  • Lesson: Ransomware can escalate from a cybersecurity breach into a national supply chain crisis. Preparedness and segmented access controls are essential: especially for operational technology and critical infrastructure.

2. Supply Chains Get Dragged Down: Kaseya VSA (2021)

In July 2021, the REvil gang exploited vulnerabilities in Kaseya’s VSA remote management software, infecting MSPs and over 1,000 downstream businesses. The attackers demanded tens of millions in ransom for a universal decryptor.

  • Lesson: Third-party tools and service providers can become attack catalysts. Protecting your tech ecosystem means extending security policies and monitoring beyond your own network: into partners and software you depend on.

3. City Governments Can Be Held Hostage: Baltimore (2019)

The City of Baltimore was hit by the RobinHood ransomware, taking down municipal systems, including court records and public services, for weeks. Recovery cost the city $18 million, far more than the ransom demand.

  • Lesson: Ransom payments are rarely the largest cost. Downtime, manual workarounds, and recovery overheads typically dwarf the ransom itself. Resilience planning matters.

4. Personal Data Can Be Exposed: Kido International (2025)

In 2025, Kido International, an early-years education provider, suffered a ransomware attack exposing sensitive data of about 8,000 children and staff. Criminals leaked personal information online and demanded payment, prompting guidance from the UK’s National Cyber Security Centre.

  • Lesson: Ransomware isn’t just about encrypted files: data theft and privacy risk are now common. Protecting sensitive information with robust access control and encryption at rest limits the long-term impact of breaches.

State Services Disrupted: Nevada (2025)

A ransomware attack on Nevada’s state systems was ongoing for months before detection, affecting driver licensing and background check services. The incident cost around $1.5 million to recover, and no ransom was paid.

  • Lesson: Rapid detection and response can significantly reduce damage. Sophisticated monitoring and centralised cybersecurity operations mean attacks are found before they go deep.

What These Cases Teach Us

Across very different industries, from energy and local government to education and state services, common themes emerge:

  • Preparation beats reaction: Plans and response rehearsals dramatically reduce impact.

  • Backups aren’t enough alone: If attackers compromise backup systems, recovery becomes much harder.

  • Third parties are part of your risk surface: MSPs, partners, and SaaS tools all need security oversight.

  • Data protection matters: Beyond service availability, data privacy and compliance risk is a core business issue.

Understanding these real ransomware cases isn’t about fear: it’s about realising how sophisticated the threat has become and what proactive steps actually make a difference.

How to Protect Your Business from Ransomware

If ransomware has evolved, your defences need to evolve too.

Protection isn’t about one tool. It’s about layers. The businesses that recover fastest, or avoid attacks entirely, tend to have a few core controls in place.

Here’s what actually makes a difference.

1. Lock Down Access

Most ransomware attacks begin with compromised credentials or exposed remote access.

Start with:

  • Multi-Factor Authentication (especially for admin accounts)
  • Removing shared logins
  • Strong password policies
  • Restricting RDP and remote access exposure
  • Regularly reviewing privileged access

If attackers can’t move freely through your systems, they can’t escalate the damage.

Identity is your first line of defence.

2. Patch Relentlessly

Unpatched vulnerabilities are one of the easiest entry points.

Make sure:

  • Operating systems are up to date
  • Third-party software is patched regularly
  • Firewalls and network devices are updated
  • End-of-life systems are phased out

Attackers actively scan for known vulnerabilities. Patch management closes obvious doors.

3. Protect and Test Your Backups

Backups are essential, but only if they work when you need them.

Best practice includes:

  • Offline or immutable backups
  • Separation from primary network credentials
  • Regular restoration testing
  • Clear recovery time objectives

If you can restore quickly and confidently, ransom demands lose power.

4. Strengthen Endpoint and Email Security

Most attacks still start with phishing. Layer your protection:

  • Advanced email filtering
  • Endpoint detection and response (EDR)
  • Anti-malware with behavioural monitoring
  • Blocking suspicious file types

Technology reduces risk, but it doesn’t eliminate it entirely.

5. Train Your People

Security awareness isn’t a one-off workshop. Ongoing training helps staff:

  • Spot phishing attempts
  • Question unexpected attachments
  • Report suspicious activity quickly
  • Understand social engineering tactics

A vigilant employee can stop an attack before it starts.

6. Have a Clear Incident Response Plan

When ransomware hits, time matters. Your plan should define:

  • Who leads the response
  • How systems are isolated
  • Who communicates with customers and stakeholders
  • When legal and cyber insurers are notified
  • Decision-making around ransom payments

If decisions are made under pressure without a framework, mistakes happen. Preparation reduces panic.

The Bigger Picture

Ransomware protection isn’t just about prevention. It’s about resilience.

Can your business continue operating if systems go offline? Can you detect abnormal behaviour early? Can you restore without negotiation?

The strongest organisations don’t rely on a single security tool. They build layered, proactive security strategies aligned to business risk.

Because ransomware isn’t slowing down, but it can be managed.

Final Thoughts

Ransomware isn’t a distant, abstract threat anymore. It’s a regular part of the risk landscape for modern businesses.

And it doesn’t just target global enterprises. In many cases, growing organisations are more attractive: large enough to pay, but not always mature enough to defend themselves properly.

The important thing to remember is this: ransomware isn’t inevitable.

Most successful attacks rely on common gaps: weak access controls, unpatched systems, poor visibility, untested backups, or a lack of preparation. Close those gaps, and you dramatically reduce your exposure.

Start by understanding where your vulnerabilities are. Review your access controls. Test your backups. Strengthen monitoring. Train your people. Build a response plan you’re confident in.

Ransomware feeds on disruption and urgency. Resilient businesses remove both.

And in a world where digital operations are central to growth, resilience is about protecting your ability to operate, serve customers, and move forward without interruption.

About Lyon Tech
We help businesses reduce ransomware risk through layered security: from access control and endpoint protection to backup strategy, monitoring, and incident response planning.
Explore more

Sign up for monthly updates

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thin white curved line forming loops and waves on a black background.