Ransomware Activity Surges in Q1 2025: A Critical Wake-Up Call for North Carolina SMBs

The first quarter of 2025 has marked a turning point in the global battle against ransomware. Across industries, geographies, and business sizes, ransomware activity surged at a pace that stunned even seasoned cybersecurity professionals. For small and medium-sized businesses (SMBs) in North Carolina—whether you run a healthcare practice in Raleigh, a manufacturing shop in Hickory, or a financial services firm in Charlotte—the reality is clear: ransomware is no longer an abstract IT issue; it is a direct business threat.

The state of ransomware in Q1 2025 shows not only a sharp increase in the frequency of attacks but also an alarming evolution in tactics. Hackers are no longer just encrypting files—they are stealing sensitive data, leveraging artificial intelligence to bypass defenses, and exploiting third-party vendor tools to infiltrate networks. For SMB owners, this means that ransomware has entered a new era, and defensive strategies must evolve with it.

This article will explore the ransomware surge in Q1 2025, unpack the latest tactics used by cybercriminals, and provide a detailed cybersecurity checklist and scenario planning guide specifically designed for SMBs in North Carolina.

Q1 2025 by the Numbers: State of Ransomware

The numbers tell a sobering story:

• Check Point Research reported a 126% year-over-year increase in publicly disclosed ransomware victims, rising from 1,011 in Q1 2024 to 2,289 in Q1 2025. This is the steepest rise recorded in years.
• Dragos, which tracks ransomware targeting industrial operators, recorded 708 global ransomware incidents in Q1 2025—an 18% increase over Q4 2024. Industrial companies were the most targeted sector, making up nearly 68% of ransomware attacks.
• GuidePoint Security’s GRIT report found 2,063 ransomware victims, the highest ever recorded for a single quarter, and identified 70 active ransomware groups, marking a 56% year-over-year increase in attacker diversity.
• Honeywell’s analysis revealed a 46% surge in ransomware attacks against industrial operators in just one quarter.
• HIPAA Journal highlighted that healthcare providers in the U.S. faced some of the most damaging ransomware breaches yet, with dozens of data breach notifications filed under HIPAA regulations.

Together, these reports point to one conclusion: the state of ransomware in 2025 is more severe, more complex, and more unpredictable than ever.

Evolving Tactics of Ransomware Actors

Cybercriminals are not just repeating old tricks. The tactics seen in Q1 2025 show a level of creativity and sophistication that makes ransomware one of the fastest-evolving forms of cyber-attack.

1. Encryption-less Extortion

Groups like Cl0p have increasingly abandoned file encryption in favor of data theft and extortion. Instead of locking down your systems, attackers steal sensitive customer or financial data and threaten to publish it unless a ransom is paid.

2. Supply-Chain Exploits

In Q1 2025, Cl0p also exploited vulnerabilities in Cleo Managed File Transfer tools, gaining access to victims indirectly. This trend of supply chain attacks means that even if your business invests in strong internal defenses, a vulnerable vendor could still open the door to attackers.

3. Fabricated Victim Claims

Some groups, such as FunkSec and Babuk-Bjorka, began fabricating or recycling victim claims on leak sites. This tactic adds confusion and damages reputations, even when no breach has occurred.

4. Smaller, Agile Groups

While big names like LockBit and Alphv remain active, the ransomware landscape is fragmenting. Smaller mid-tier groups such as Lynx, Play, and Fog are stepping up, often using innovative tactics and making it harder for defenders to track trends.

5. AI-Enhanced Attacks

The most alarming shift is the use of artificial intelligence by groups like FunkSec and RansomHub. AI-generated phishing emails are more convincing than ever, malware is more adaptive, and AI tools are being used to bypass traditional endpoint defenses.

Impact on North Carolina SMBs

Why should this matter to business owners in North Carolina? Because the very sectors that drive the state’s economy—manufacturing, healthcare, financial services, biotech, and professional services—are among the hardest hit by ransomware activity in Q1 2025.

• Manufacturing: Dragos reported that nearly 70% of ransomware attacks on industrial operators targeted manufacturers. For towns like Hickory, Winston-Salem, and Greensboro, where manufacturing remains a backbone of the economy, this trend is a red flag.
• Healthcare: HIPAA Journal revealed a surge in healthcare ransomware breaches, and North Carolina’s hospitals, clinics, and private practices are prime targets. With sensitive patient data at stake, the risks go beyond financial loss—they threaten compliance and patient trust.
• Services and Retail: Check Point reported that 33% of Cl0p’s victims were from consumer services. Restaurants, retail shops, and law firms across Charlotte, Raleigh, and Durham are squarely in the crosshairs.

The rise of IT-OT convergence—where IT attacks spill over into operational technology—means even small manufacturers or logistics providers could see production grind to a halt from a ransomware incident.

A Real-World Analogy

Imagine you run a family-owned furniture manufacturing company in Hickory. You’re in the middle of fulfilling a large order when suddenly, your vendor’s file transfer tool is exploited by attackers. Sensitive blueprints are stolen, not encrypted, and the attackers demand $250,000 or they’ll leak the designs to your competitors and customers.

The result? Production halts, your reputation takes a hit, and you face legal liabilities for failing to protect customer data.

This isn’t just a nightmare scenario—it mirrors the exact types of cyber threats businesses faced in Q1 2025.

Cybersecurity Checklist for SMBs

Here’s a practical cybersecurity checklist SMBs in North Carolina can use to harden defenses:

✅ Cyber Hygiene

• Enable Multi-Factor Authentication (MFA) for all accounts.
• Regularly patch operating systems, apps, and firmware.
• Use strong, unique passphrases managed through a password manager.

✅ Backup & Recovery

• Follow the 3-2-1 rule: three copies of data, two formats, one offline.
• Test backup restoration regularly.
• Store backups separate from core IT environments.

✅ Endpoint & Network Defense

• Deploy Endpoint Detection & Response (EDR) tools.
• Use advanced email filtering to block phishing attempts.
• Implement Zero Trust access control.

✅ Staff Training

• Conduct regular phishing simulations.
• Train employees on breach reporting and escalation.

✅ Incident Readiness

• Build an incident response playbook.
• Partner with a local Managed IT Services provider in North Carolina.
• Review your cyber insurance coverage.

Scenario Planning Guide for SMBs

📌 Scenario 1: Encryption-less Extortion

Threat: Data stolen and leaked without encryption.
Preparation: Encrypt sensitive files internally, limit access, and establish breach communication protocols.

📌 Scenario 2: Supply Chain Breach

Threat: Attackers infiltrate via vendor software.
Preparation: Vet vendor cybersecurity policies and require third-party risk assessments.

📌 Scenario 3: AI-Powered Phishing

Threat: Perfectly polished, AI-generated phishing emails.
Preparation: Deploy AI-based filtering tools and encourage a “pause and verify” culture.

📌 Scenario 4: IT-OT Shutdown

Threat: IT ransomware causes production downtime.
Preparation: Segregate IT and OT systems, monitor cross-traffic, and run tabletop downtime drills.

Quick-Action Roadmap for SMB Owners

For owners with limited resources, here’s a 5-step quick start plan:

1. Audit critical systems for vulnerabilities.
2. Enable MFA on all accounts this week.
3. Test your data backup process this month.
4. Run a phishing awareness session for staff.
5. Establish a relationship with a North Carolina IT partner before a breach happens.

Conclusion: From Awareness to Action

The surge in ransomware activity in Q1 2025 is not a distant cyber event—it’s a local business challenge that could impact your operations, your customers, and your bottom line.

For North Carolina SMBs, the lesson is simple: cybersecurity can no longer be reactive. By implementing the cybersecurity checklist, preparing for realistic ransomware scenarios, and taking even small proactive steps, you can reduce your exposure to cyber-attack and safeguard the future of your business.

Think of it like hurricane preparation on the Carolina coast: you don’t wait for the storm to make landfall before boarding up the windows—you prepare in advance. In 2025, ransomware is that storm, and the time to act is now.