Small and medium-sized businesses (SMBs) often find themselves in cybercriminals’ crosshairs and not for the reasons you might expect. Hackers are opportunists. Why waste time cracking enterprise firewalls when they can pick off small businesses with outdated systems, weak passwords, and zero training? That’s their assumption anyway.
Cybercriminals rely on SMBs being the low-hanging fruit—and the harvest can be plentiful.
Why Are SMBs More Vulnerable to Cyberattacks?
Clutch your pearls (and maybe your passwords), because these SMB cybersecurity stats might have you rethinking how safe your business really is:
- Smaller businesses account for 46% of all cyber incidents.
- 61% of SMBs were targeted by cyberattacks in 2021, and many were caught completely off guard.
- Many SMBs operate with minimal cybersecurity budgets—47% of businesses with fewer than 50 employees don’t even have a cybersecurity budget, and 51% have no cybersecurity measures at all.
Cyber Incident Threats SMBs Face
The problem with many SMBs’ journeys to a more secure organization is that they don’t know what threats to look out for and, therefore, which solutions are actually necessary. We’ve compiled a list for you.
Phishing
As the most unassuming type of cyber incident, phishing remains the most frequently attempted cyberattack, with SMB employees experiencing 350% more social engineering attacks than their counterparts. Compare this to the amount of malicious emails SMBs face a year: 1 in 323.
To take the risk a step further, SMBs often lack employee training. When a malicious email shows up, many employees fall victim, and companies scramble to remedy a problem they were never prepared against.
Ransomware
Ransomware disproportionately affects smaller businesses. Ransomware is a type of malicious software that locks or encrypts your files, making them completely inaccessible. An attacker often demands payment in exchange for the decryption key. Even if a business pays, there’s no guarantee they’ll get their data back, and the costs can go beyond financial: downtime, lost revenue, and reputational damage.
In 2021, 82% of ransomware attacks were aimed at companies with fewer than 1,000 employees, and 37% of those victims had under 100 employees. Half of SMBs hit by ransomware paid the ransom, and 75% couldn’t continue operating after an attack.
Malware
Malware is any software intentionally designed to damage, disrupt, or gain unauthorized access to a computer system. It can come in many forms and often spreads through infected files, malicious websites, or compromised email attachments.
Malware remains the top cyber incident concern for SMBs, impacting 18% of them. Whether it’s stealing data, spying on activity, or breaking critical functions, malware’s goal is simple: wreak havoc.
Remote/Hybrid Work Risks
The shift to remote and hybrid work presents many opportunities for cybercriminals. While the convenience it brings is a luxury, security is rarely top of mind. Without strong security protocols for remote access, vulnerabilities multiply—unsecured home networks and personal devices open the door to attackers.
Legacy Systems
Outdated systems often lack modern protection. Many SMBs continue relying on free, consumer-grade antivirus tools or older software versions simply because “it still works.”
But once a system reaches “end of life,” the manufacturer stops releasing security updates, leaving known vulnerabilities wide open for exploitation. Cybercriminals actively scan the internet for these outdated platforms, knowing they can be breached with minimal effort. In addition, legacy systems often can’t integrate with newer security tools, creating gaps in visibility and protection.
The result? A business running critical operations on technology that attackers can dismantle with ease.
How SMBs Can Combat These Threats
Knowing the risks are the first step, the next step is taking control. While SMBs face unique cybersecurity challenges, the good news is that there are clear, actionable steps you can take to protect your business—here are a few.
Regular Security Awareness Training
Since the majority of incidents stem from human error, awareness is critical. The most simple yet most effective step you can take is training employees to recognize phishing emails, suspicious links, and social engineering tactics.
Partner with a Cybersecurity Provider
Thinking it’s only for big companies? This kind of thinking is exactly what cybercriminals are depending on. Cybersecurity providers handle and mitigate cyber incidents you didn’t even know existed. Partnering with a provider is a surefire way to stay off the cybercrime radar.
Engage a Managed IT Provider
Still relying on the ‘turn it off and on again’ tactic? Unfortunately, it’s not as effective as many are led to believe. A trusted Managed Service Provider (MSP) can proactively monitor and secure systems, keeping you in the loop and in the clear.
Password Protection Best Practices
Implement strong password policies supported by multi-factor authentication (MFA). With 80% of hacking cyber incidents involving compromised credentials, MFA makes sure compromised credentials don’t mean compromised data.
Cyber Insurance
Only 17% of small businesses currently have cyber insurance; the majority are unfamiliar with or unenrolled in coverage. Cyber insurance can cover significant costs associated with breaches, and due to the risk SMBs face, it is a must.
Regular Incident Response Planning
Have a clear plan for how to respond if an attack occurs, and conduct periodic vulnerability checks to identify and eliminate security gaps.
Turn Awareness Into Action with AIS
Cloud-based tools, remote work dynamics, and evolving threats mean that SMBs can no longer afford to treat cybersecurity as an optional service. Investing in employee training, external security expertise, and protective tools is necessary, but doing it alone doesn’t have to be.
Want to fortify your business and safeguard your future? Partner with AIS to make it a team effort!