Ransomware Threatens Business Survival, Warns ESET

Cyberattacks pose risks beyond financial losses

ESET has issued a warning that ransomware attacks can do more than cause temporary disruptions or financial setbacks. According to the Slovak cybersecurity company, such incidents can lead to the complete collapse of a business. Successful defense depends not only on technical measures but also on whether a company’s overall strategy anticipates threats and prepares for recovery. The statement highlights the growing importance of resilience in the face of cybercrime.

Rising Costs and High-Profile Cases

IBM’s latest report estimates that recovery from a single ransomware attack costs nearly $5 million on average. Supply chain vulnerabilities often amplify the damage, as seen in the 2021 Kaseya incident, which spread globally through compromised IT management software. More recently, Jaguar Land Rover suffered a severe attack in August 2025, forcing a six-week shutdown and causing losses of £1.9 billion. These examples underscore the scale of disruption ransomware can inflict across industries.

ESET noted that ransomware now affects every sector, but small and medium-sized businesses (SMBs) face the greatest risk. Verizon’s Data Breach Investigations Report found that ransomware accounted for 88% of data breaches among SMBs, compared to 39% at large enterprises. One-third of all damages from cyber incidents are linked to ransomware or similar extortion methods. The figures illustrate how smaller firms, often lacking advanced defenses, are disproportionately impacted.

Vulnerability of Smaller Firms

Cyber resilience is increasingly viewed as a business survival strategy rather than just an IT concern. SMBs depend heavily on their data and infrastructure, yet they often lack the tools and policies that larger companies use to mitigate risks. This leaves them more exposed to permanent data loss and prolonged shutdowns. In many cases, the threat of complete business failure pressures victims into paying ransoms, despite no guarantee of data recovery.

Experts emphasize that poorly protected small businesses are attractive targets for attackers. With more digital assets than individual users but weaker defenses than large corporations, SMBs have long been in the crosshairs. Studies show that 55% of organizations that paid a ransom once ended up paying again, with 29% doing so three or more times. This cycle of repeated extortion highlights the importance of prevention over reaction.

Human and Organizational Impact

Beyond financial costs, ransomware attacks cause significant organizational and human damage. Public attention often focuses on ransom demands and ethical debates, but the consequences include reputational harm, lost opportunities, and employee distress. Workers may suddenly lose their jobs, while companies struggle for months to restore systems. The trauma is compounded when attackers threaten to leak stolen data, adding pressure to already strained organizations.

ESET advises businesses to deploy modern security software capable of detecting and blocking ransomware before activation. Regular offline backups, separated from main systems, are also recommended. Companies should establish clear contingency plans outlining technical, legal, and communication responses to an attack. As experts stress, the question is no longer whether a ransomware incident will occur, but whether a business is prepared to withstand it.