The Growing Threat of Cyber Extortion: Is Your Data Secure?

Cyber Extortion: What Is It and What's the Risk to Your Business?

Cyber attacks spike during busy periods when defences are down. The scale of the threat to UK businesses has never been clearer—and it's something that should be on your radar.

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What is cyber extortion?

At its core, cyber extortion is a type of cybercrime where criminals threaten to harm your business by compromising its data or digital assets unless a ransom is paid. Often, this involves ransomware—malicious software that locks your data and makes it inaccessible until you meet the criminal's demands. But in some cases, cyber criminals take it a step further: they steal your data and threaten to release it on dark web leak sites if you don't pay up. This is known as double extortion.

Ransomware attacks are accelerating. The percentage of UK businesses experiencing ransomware crimes doubled from 0.5% to 1% between 2024 and 2025—representing an estimated 19,000 businesses affected in the UK alone.

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Cybercriminals increasingly target smaller organisations because they're often less well-defended but still hold valuable data. Industry research confirms that small businesses are 4 times more likely to be targeted than larger enterprises—and many get attacked by criminals using Ransomware-as-a-Service tools that lower the barrier to entry.

Why should you be worried?

Double extortion—where attackers both encrypt data and threaten to leak it—has become the dominant ransomware model. The UK remains a prime target for cybercriminals.

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Medium-sized businesses (65%) and large businesses (69%) are most likely to report cyber breaches. But any business—no matter the size or industry—could become a target. Manufacturing, professional services, wholesale trade, and healthcare are among the top industries suffering from these attacks.

Globally, the FBI's Internet Crime Complaint Center received over 859,000 complaints in 2024, with losses exceeding $16 billion—a 33% increase from 2023.

The Real Cost to UK Businesses

Cyber extortion doesn't just disrupt operations—it drains resources:

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Beyond direct costs, businesses face regulatory fines, reputational damage, and lost customer trust. For SMEs operating on tight margins, a single ransomware incident can be catastrophic—potentially leading to permanent closure.

How can your business defend against cyber extortion?

Back up your data

Ensure you have a solid backup strategy in place. Keep backups offline or offsite and test your recovery process regularly.

Keep software up to date

Ensure that all your devices are running the latest software, especially those connected to the internet. Cyber criminals often exploit outdated systems, so patching vulnerabilities is crucial.

Implement Multi-Factor Authentication (MFA)

Add an extra layer of security by using MFA. This requires additional verification (like a code sent to a separate device) to access sensitive data. Limit user access to only what's necessary for their role.

Patch and vulnerability management

Regularly update your systems to fix known security vulnerabilities. Criminals frequently target unpatched weaknesses, so staying on top of updates can make all the difference.

Have an incident response plan

Know what to do before an attack happens. Your plan should include: who to contact, how to isolate affected systems, backup restoration procedures, and reporting requirements. The National Cyber Security Centre provides free guidance on creating incident response plans.

Don't wait until it's too late.

Understanding the risks of cyber extortion and taking proactive steps to protect your business is key to avoiding a disaster. With cyber threats rising, now's the time to take action.

If you suspect you've been targeted, immediately isolate affected systems from the network. Don't turn off computers as this may destroy forensic evidence. Report to Action Fraud (0300 123 2040) and the National Cyber Security Centre. Do not communicate with attackers without professional guidance.

If you're concerned about the rising threat of cyber extortion or want to make sure your business is prepared, we're here to help. At Inflection Point, we can guide you through the right steps to ensure your business is secure, so you can focus on what really matters—growing your business.

Let's talk. We're here to help keep your business safe from these growing threats.