Ransomware — Plain English Definition | PSOS

Ransomware

Ransomware gets in the way most attacks do — a phishing link, a reused password, an out-of-date plugin or remote access tool left open. Once inside, it scrambles your files so nothing opens, and these days often copies them out first. Then comes the note: pay, usually in cryptocurrency, or lose the files — or see them published.

Small businesses get hit because they’re easy, not because anyone picked them. Automated tools scan the internet for any door left open, and a two-person business looks the same to them as a bank.

Why it matters: paying doesn’t guarantee anything — you’re trusting criminals to keep their word. It’s also a legal matter for larger businesses. Since 30 May 2025, a business with annual turnover over $3 million that pays a ransom must report the payment to ASD within 72 hours. If customer information was taken, the Notifiable Data Breaches scheme may apply as well.

What to do: the fix is boring, and it works. Keep backups somewhere the attack can’t reach — offline, or a service with version history — and check that you can restore from them. Keep software and plugins updated. Turn on two-factor authentication, especially for email and remote access. If it happens, report it through ReportCyber at cyber.gov.au.

Last reviewed: October 2026

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