According to the Cybersecurity and Infrastructure Security Agency (CISA), small businesses are three times more likely to be targeted by cybercriminals compared to larger companies.1 This means that if you run a small business, you could be at a higher risk of falling victim to Cyberattacks.
The threat is serious: the annual global cost of cybercrime is expected to reach a staggering $9.5 trillion in 2024 and is projected to climb to $10.5 trillion in 2025.2 With these alarming numbers, having strong Cybersecurity measures in place is not just an option—it’s a necessity.
Small Businesses Are Facing Increased Cyberattacks
In the past year, many business owners like you have started seeing Cybersecurity as one of their biggest concerns. The Aviva Cyber Report 2024 shows that this perception has jumped by 17% compared to last year. Large companies are feeling the pressure the most, with 46% of them naming cyber threats as their number one risk, and 17% of small businesses seeing Cybersecurity as a major issue.
According to Aviva, over half of businesses, 57% now fret about being hit by a Cyberattack. That’s a big jump from just 40% in 2020. This growing fear isn’t unfounded as the report shows that 32% of businesses affected by these attacks faced serious operational problems, causing a halt in daily activities.
And it’s not just about disruptions—21% of those businesses ended up losing important data. This causes 60% of small and medium-sized businesses (SMBs) to close down within six months after a Cyberattack.
It’s no surprise that many small businesses are feeling the pressure. From the same Aviva report, about 67% of companies with fewer than 1,000 employees have been attacked at some point, and 58% of them have had a breach.
These statistics show just how vulnerable small businesses are, making it important for owners to take Cybersecurity seriously.
What Are The Common Cyber Threats Facing Small Businesses
According to various reports and findings, these are the common cyber threats that small businesses often encounter.
Data Loss & Data Breaches
The Aviva report notes data loss or breaches as the primary concern among small businesses cited by 54% of respondents. IBM’s Cost of a Data Breach 2024 reports the global average cost of a data breach in 2024 is $4.88 million, which is a 10% increase from 2023.
Data loss is when important information, like customer records, gets deleted or damaged, while a data breach happens when hackers steal that information. For a small business, this can lead to lost trust, legal issues, and financial damage—just like when AT&T disclosed a data breach affecting millions of customers, when a hacker group offered National Public Data’s stolen database for $3.5 million on the dark web, or when Dell’s customer database got compromised.
Ransomware
As shown in the Sophos State of Ransomware 2024 report, over half of organizations, 59%, were hit by Ransomware in 2023. In 70% of these cases, sensitive data was encrypted, leaving businesses stuck and desperate to recover it.
Even worse, ransom demands have increased five times over the past year. Businesses now face much higher costs, with no guarantee they’ll get their data back. A big reason for these attacks—32%—is unpatched software, which leaves businesses vulnerable.
Small businesses are feeling the impact, too. According to the Aviva report, 42% of small businesses were hit hard by Ransomware. These attacks cause not just data loss but also disrupt operations, making it difficult for businesses to keep running. Ransomware threats like these are real, and they strike at night, weekends, and holidays!
Malware
The Sophos Security Threat 2024 Report finds that almost 50% of the malware aimed at small businesses is focused on stealing data. The Aviva report also states that malware attacks are a considerable worry for 45% of small businesses, which indicates a strong focus on protecting against various forms of malicious software.
Hackers use tools like password stealers and keyloggers to take your important information, which can include customer details or even your personal data. These attacks make it easy for cybercriminals to break into your systems without you even knowing until it’s too late.
Phishing
Phishing is another big concern. According to the Sophos report, 43% of small businesses have faced phishing attempts, where hackers deceive employees into clicking fake links or providing personal information.
It’s easy to see how someone could fall for it, as these attacks often look like harmless emails or messages from trusted sources. Once someone clicks, though, the damage can be severe. This makes phishing a major threat for small businesses, where protecting employees from these attacks is just as important as protecting your data.
Social Engineering
Social engineering adds another threat vector, with 60% of small businesses encountering these attacks, according to the Sophos report. Hackers don’t just rely on technology; they use manipulation to get employees to hand over sensitive information.
Zero-Day Vulnerability Attacks
And if that wasn’t enough, Sophos finds that 37% of small businesses reported facing zero-day attacks, where hackers exploit vulnerabilities that haven’t even been discovered by software developers yet. This means there’s no defense in place yet, making it easy for hackers to break in and cause damage.
Disgruntled (Ex)Employees
Rogue ex-employees might not be the first threat you think of, but they can also pose a security risk. If a former employee still has access to data, a breach could happen.
For example, in 2021, a police officer was caught sharing info on the dark web, and a hospital faced a leak due to an ex-worker. To prevent this, make sure you have policies in place, like a Non-Disclosure Agreement (NDA). When an employee leaves, immediately revoke their access and change any passwords they use. Enable MFA where possiable.
Why Do Hackers Target Small Businesses?
As a small business owner, you might think that your business is too small to be a target for cybercriminals. But the truth is, you’re just as much of a target as any big corporation.
According to the National Cybersecurity Institute Report, hackers view small businesses as gateways to break into larger companies, especially if they work with such clients. This report also suggests that many small businesses don’t have strong Cybersecurity because of limited resources, making them easier targets for attacks.
Also, cybercriminals find any business data valuable. And if they can get their hands on it, they can use it to steal money and identities, or even hold your business ransom. Sure, your LinkedIn or Twitter account might not be as valuable to them, but your business data is.
Small Businesses Are Unprepared for Cyber Threats
Cisco’s 2024 Cybersecurity Readiness Index report indicates that only 3% of organizations are considered “Mature” in handling Cybersecurity threats. Most businesses, about 71%, are far behind, with 60% at a “Formative” level and 11% still just starting in the “Beginner” stage. This shows that many businesses have a long way to go when it comes to implementing comprehensive security measures.
The future doesn’t look much better, either. Around 73% of companies believe they will experience a major cyber incident that will disrupt their business within the next year or two. This means most businesses expect to face serious cyber attacks soon, but many are not fully ready to handle them.
For SMBs, the situation is even more worrying. The Cisco report points out that SMBs are often less prepared than larger organizations. Without the same resources or Cybersecurity measures, smaller businesses are more at risk, which makes it important to start strengthening your defenses now.
Urgent Action Needed for Cybersecurity
The World Economic Forum (WEF) Global Cybersecurity Outlook 2024 reveals that the number of organizations that can maintain basic cyber resilience has fallen by 30%, with SMBs being hit hardest. Many businesses are struggling to keep up with essential Cybersecurity measures.
On top of that, 41% of businesses that faced serious problems said these issues were due to vulnerabilities in third-party services. If you partner with other companies, make sure their security is strong, as their system vulnerabilities can affect your business.
Though there is a strong sense of urgency that exists among leaders; 90% of executives believe immediate action is necessary to address Cybersecurity gaps. If you own a business, it’s best to focus on improving your Cybersecurity posture now.
With small businesses facing a higher risk of attacks and the costs of cybercrime growing rapidly, being prepared is your best defense against becoming a sitting duck for Cybercriminals.
FAQ
Why Is Cybersecurity Important For Small Businesses?
Cybersecurity is important for small businesses because it protects sensitive information like customer data and financial details from cybercriminals. A single attack can lead to huge losses, such as financial and reputational damage. Investing in strong Cybersecurity measures helps keep your business safe and builds trust with your customers.
Why Do Hackers Target Small Businesses?
Hackers target small businesses because they often have weaker security measures than larger companies. Small businesses may not have the resources or specialized security knowledge to defend against Cyberattacks. It also depends on the value of the data that a small business has that hackers want, such as customer credentials and financial details.
How Does Cybersecurity Improve Business?
Cybersecurity improves business by protecting sensitive information and preventing costly attacks. 2Secure can assist by offering services like ransomware attack simulations, penetration testing, endpoint protection, and data backups. These security measures help identify vulnerabilities, strengthen security, and prepare your business to handle cyber threats effectively, giving you peace of mind.
Source:
- Secure Your Business | CISA. (n.d.). Www.cisa.gov. https://www.cisa.gov/secure-our-world/secure-your-business
- Arroyabe, M. F., Carlos F.A. Arranz, Fernandez, I., & Carlos, J. (2024). Revealing the Realities of Cybercrime in Small and Medium Enterprises: Understanding Fear and Taxonomic Perspectives. Computers & Security, 103826–103826. https://doi.org/10.1016/j.cose.2024.103826
