Small and medium-sized businesses (SMBs) are the backbone of the global economy, but they’re also increasingly under siege from cyberattacks. A report titled “The State of SMB Cybersecurity in 2024” conducted by Vanson Bourne and commissioned by ConnectWise, found that a staggering 78% of SMBs fear cyberattacks could shut down their business. This fear is well-founded, as the report also found that 94% of SMBs have experienced at least one cyberattack, up from 64% in 2019.
This increase in cyberattacks is exacerbated by the fact that 76% of SMBs lack the in-house skills to properly address security issues, increasing demand for the expertise and services of Managed Service Providers (MSPs). The growing wave of cyber incidents is eroding SMBs’ confidence in their ability to protect their businesses. This escalating apprehension is pushing SMBs to reevaluate and strengthen their cybersecurity strategies, recognizing the urgent need for proactive measures to safeguard their data, maintain customer trust, and drive innovation in a perilous digital era.
Why Are SMBs So Vulnerable?
SMBs are often seen as easier targets for cybercriminals than large enterprises. They may not have the same level of cybersecurity resources or expertise as larger companies. Additionally, SMBs may be more likely to use outdated software or have weaker security protocols in place.
The ConnectWise study delved into the reasons why SMBs are prime targets for cybercriminals.
Here’s what they found:
- Resource Gap: Compared to large enterprises, SMBs often lack the dedicated cybersecurity staff and robust security infrastructure. This makes it harder for them to detect and respond to threats promptly.
- Security Awareness Shortfall: The study found that many SMB employees lack proper cybersecurity training, making them more susceptible to phishing attacks and social engineering tactics.
- Outdated Technology: Tight budgets often force SMBs to rely on outdated software and operating systems with known security vulnerabilities. Cybercriminals exploit these vulnerabilities to gain access to SMB networks.
- Focus on Growth Over Security: Rapid growth can sometimes lead SMBs to prioritize business expansion over cybersecurity investments. This creates security gaps that attackers can easily exploit.
What Types of Cyberattacks Are SMBs Most at Risk Of?
There are a variety of cyberattacks that can target SMBs, but some of the most common include:
- Phishing attacks: SMBs are increasingly falling victim to sophisticated spear phishing attempts that target specific employees and exploit their knowledge of the company. These attacks involve sending emails or text messages that appear to be from a legitimate source, such as a bank or credit card company. The emails or text messages will often contain a link that, when clicked, will take the victim to a fake website that looks like the real website. Once the victim enters their personal information on the fake website, the cybercriminals can steal it.
- Ransomware attacks: Ransomware continues to be a major threat, with SMBs often being targeted due to the perception that they are more likely to pay a ransom to regain access to their critical data.
- Malware attacks: MMalware, including viruses, worms, and Trojan horses, remain a constant threat. The study found that many SMBs lack endpoint detection and response (EDR) solutions, making them vulnerable to malware that can steal data, disrupt operations, or install ransomware. Malware can steal data, damage files, or even take control of a computer system.
Can Your Small Business Withstand a Cyberattack? Here’s How to Fight Back!
According to a study by IBM, the average cost of a data breach for a small business is $4.24 million. This is a significant cost that can put many SMBs out of business.
According to research reports by reputable cybersecurity firms, cybercriminals see SMBs as easier targets than larger companies because they often have fewer resources to devote to cybersecurity.
This doesn’t mean SMBs are defenseless! By taking some proactive steps, you can significantly reduce your risk of being hacked. Here are some key strategies to consider:
Educate Your Employees
Many cyberattacks succeed because they exploit human error. How can SMBs protect themselves from cyberattacks through employee education? Train your employees on how to identify phishing emails, avoid malware, and create strong passwords. You can also conduct regular security awareness campaigns to keep your employees up-to-date on the latest threats.
Implement Strong Passwords and Multi-Factor Authentication
Weak passwords are a major security risk. Enforce a policy that requires employees to use strong passwords that are at least 12 characters long and include a mix of uppercase and lowercase letters, numbers, and symbols. You should also consider implementing multi-factor authentication (MFA), which adds an extra layer of security by requiring users to enter a code from their phone or another device in addition to their password.
Keep Software Up to Date
Cybercriminals are constantly developing new ways to exploit software vulnerabilities. It’s important to keep all of your software, including your operating system, web browser, and applications, up to date with the latest security patches.
Back Up Your Data Regularly
A cyberattack could result in the loss of important data. To protect yourself, back up your data regularly to a secure location, such as an offsite cloud storage service. This way, you can restore your data if it is lost or encrypted by ransomware.
Use a Firewall and Antivirus Software
A firewall helps to protect your network from unauthorized access, while antivirus software can detect and remove malware from your devices. Make sure you are using a reputable firewall and antivirus product and that they are kept up to date.
Secure Your Wi-Fi Network
If you offer Wi-Fi to your customers, make sure your network is secure. Use a strong password and enable encryption to protect your data from being intercepted.
Be Careful About What You Click On
Phishing emails are a common way for cybercriminals to gain access to your computer system. Be careful about clicking on links or opening attachments in emails from unknown senders. If you’re unsure about an email, it’s best to err on the side of caution and delete it.
Use a Secure Connection When Accessing Sensitive Information
If you need to access sensitive information online, such as your bank account or credit card information, make sure you are using a secure connection (HTTPS). You can check the address bar of your web browser to see if the connection is secure.
How can SMBs protect themselves from cyberattacks by controlling physical access?
Limit physical access to your computers and servers to authorized personnel only. This will help to prevent unauthorized users from installing malware or stealing data.
How can SMBs protect themselves from cyberattacks with mobile device security?
Mobile devices are becoming increasingly popular for business use. However, they can also be a target for cyberattacks. Make sure your employees are aware of the risks and take steps to protect their mobile devices, such as using strong passwords and installing security software.
Have a Plan for Responding to a Cyberattack
No matter how many precautions you take, there is always a chance that your business will be the target of a cyberattack. It’s important to have a plan in place for how you will respond to an attack. This plan should include steps for containing the attack, mitigating the damage, and recovering your data.
Consider Cyber Insurance it can help to offset the costs of a cyberattack
Don’t Be a Sitting Duck: Take Action Today!
Cyberattacks are a serious threat to SMBs, but they are not inevitable. By taking some proactive steps to improve your cybersecurity posture, you can make your business a much less attractive target for cybercriminals. Don’t wait until it’s too late to take action. Start implementing these cybersecurity best practices today and give your business the best chance of staying safe online.
