Many small and medium-sized businesses (SMBs) assume hackers only go after big corporations. But in 2025, thatâs far from true. Cybercriminals now target smaller companies more often, knowing they typically have weaker defenses. Recent data shows that nearly 61% of SMBs were hit by a cyberattack in the past year, with attacks on small businesses rising by 28% since 2022. Even minor breaches can cost tens of thousands of dollars, and 60% of small companies close within six months of a major incident.
No business is too small to be a target â and ignoring cybersecurity is a risky bet. Letâs explore the biggest threats SMBs face right now and how to stay protected.
1. Ransomware: Locking Up Your Business
Ransomware remains one of the most damaging threats to SMBs. This malware locks critical files and demands payment to restore access. In 2025, ransomware gangs are highly organized and often focus on smaller firms, knowing they may pay quickly.
Over 80% of ransomware attacks hit businesses with fewer than 1,000 employees, and 37% target those with under 100 employees.
Take Young Consulting (now Connexure), for example. In 2024, it was hit by BlackSuit ransomware, exposing 950,000+ records and triggering devastating contract losses.
For SMBs, downtime is unaffordable. Every lost hour means lost revenue and trust.
Tip: Back up data regularly (offline too), test your recovery plan, and use updated anti-malware. If attacked, involve cybersecurity pros and avoid paying unless you truly have no other choice.
2. Phishing and Business Email Compromise: The Human Factor
Not every cyberattack involves advanced malware. 98% of cyberattacks begin with someone clicking a link or sharing sensitive information. Phishing and Business Email Compromise (BEC) are leading causes, and scammers have become very convincing.
In 2024, 64% of companies reported BEC attempts, with average losses reaching $150,000 per incident.
AI has made phishing smarter. Scammers craft flawless emails, scrape real details from websites, and even use deepfake audio to impersonate executives.
Tip: Make your people your strongest defense. Regularly train staff to recognize scams, reward them for catching phishing attempts, and use multi-factor authentication (MFA) to block attackers even if passwords are compromised.
3. Insider Threats: When Risks Come from Within
Sometimes the danger isnât from outside hackers â itâs from within. Insider threats, whether malicious or accidental, pose serious risks. Employees often wear many hats and have broad access, which makes mistakes or bad actors especially dangerous.
About 95% of cybersecurity breaches involve human error. From a disgruntled worker stealing data to accidental file sharing, insider threats are common and costly.
Tip: Apply “least privilege” access rules so people only see what they need. Monitor for unusual activity and create a culture where reporting mistakes is safe and encouraged. Regular training and friendly internal phishing tests can make a big difference.
4. Unpatched Software: Easy Entry Points for Hackers
Outdated software is low-hanging fruit for attackers. Cybercriminals routinely scan the internet for unpatched systems with known vulnerabilities. If they find one, they can break in â no âhackingâ required.
Shockingly, only 20% of small businesses regularly patch systems, and 80% lack a formal policy for updates.
Tip: Enable automatic updates whenever possible. For anything else, set reminders or get help from IT services. Donât forget routers and other devices â default passwords and outdated firmware are easy targets too.
5. Supply Chain Attacks: Indirect but Dangerous
Strong in-house security doesnât always protect you if your vendors get compromised. Supply chain attacks have surged, with 15% of small business breaches in 2025 linked to third parties.
A big example: In 2021, hackers breached the Kaseya IT platform, freezing operations at 1,500 businesses worldwide â many small companies that were indirect customers.
Tip: Vet your partners carefully. Ask about certifications and security practices. Limit the data and systems they can access. Have a backup plan if a supplier is compromised and consider cyber insurance that covers third-party incidents.
Why You Canât Afford to Ignore This
Cyber threats may sound like a big business problem, but SMBs are prime targets. Hackers know smaller firms often lack advanced protections, and the consequences can be brutal.
A serious breach doesnât just mean lost data. It means lost customers, fines, lawsuits, and reputational damage. Over half of consumers say they would stop doing business with a company after a breach.
Despite this, many SMBs remain underprepared.
50% of owners donât think theyâre likely targets, and 86% donât provide regular cybersecurity training.
The truth is simple: cybersecurity is no longer optional. But it doesnât have to be overwhelming or expensive. Small, smart actions â like backing up data, patching systems, and training your team â can drastically cut your risk.
As cybersecurity expert Theresa Payton says, âYou canât stop the storm, but you can prepare for it.â
In 2025, preparation isnât a luxury â itâs survival. Protecting your business means protecting your customers, your team, and your future.
References
Preparing For 2025: The SMB Cybersecurity Gap | Forbes
52 Small Business Cyber Attack Statistics for 2025 | Qualysec
35 Alarming Small Business Cybersecurity Statistics for 2025 | StrongDM
Purdue University Fort Wayne
Phishing Trends Report | Hoxhunt
Ethical Hacker Tells SMBs How to Bolster Cybersecurity Defenses | Capterra
94% of SMBs attacked: Cybersecurity for Small Businesses in 2024 | Genatec
2024 Data Breach Investigations Report | Verizon