Top 8 Cyber Threats Every Small Business Should Know

With the rise of generative AI and new malware models like ransomware-as-a-service, attackers can now automate their attacks and target hundreds, if not thousands, of small businesses in one fell swoop.

This means that businesses of all sizes are at risk, but small businesses are particularly vulnerable to these threats.

Small businesses frequently lack dedicated IT or cybersecurity skills or enterprise-grade protections, making them more vulnerable. Many don't have resources to conduct regular cybersecurity training or implement robust security measures like multi-factor authentication or password managers, making them easier targets.

Fortunately, with the right knowledge and tools, you can safeguard your digital assets and ensure your company's growth.

Why Small Businesses Have the Most to Lose from Cybersecurity Attacks

The impact of cyber attacks on small businesses is concerning, as the statistics show:

• Average cyber claims range between $15,000 and $25,000 in recovery costs.
• The average recovery time for a business after an attack is 279 days.
• 60% of small businesses close within six months of being hacked.

Source: station.net

Cybersecurity Threats - What Are They?

Cybersecurity threats refer to any potential danger that can compromise the integrity, confidentiality, or availability of information and systems. These threats can take various forms, including malware, phishing attacks, and ransomware, and target individuals and organizations alike.

The 8 Most Common Cyber Threats on Small Businesses

We'll uncover the most common cyber threats targeting small businesses and provide actionable steps to stop them in their tracks—without the need for an in-house IT team.

1. Phishing and Social Engineering Attacks

Phishing and social engineering attacks are some of the most common cyber threats that small businesses face. In these attacks, cybercriminals try to deceive you or your team into disclosing sensitive information, such as credit card details, social security numbers, and passwords.

These attacks typically happen through emails or text messages that seem to be from reputable organizations, like your bank or well-known companies. These messages contain harmful links or attachments intended to steal information. Once they have access to your data, cybercriminals can compromise your business accounts, steal funds, or hold data for ransom.

Business email compromise (BEC) attacks pose a particular risk. In these, cybercriminals compromise your email accounts (usually via stolen credentials) to send fraudulent invoices and payment requests. These attacks are effective because the messages seem to come from a legitimate internal contact, leading to financial loss that's hard to recover.

How to Protect Your Business:

• Provide information security training for small business employees to help them understand phishing tactics and recognize suspicious emails.
• Implement email filtering tools to block malicious emails.
• Use multi-factor authentication (MFA) for all accounts.

2. Malware and Ransomware

Malware and ransomware are another type of security threats for small businesses.

Malware, short for malicious software, refers to any code designed to gain unauthorized access to systems, steal data, or cause harm to computers and networks. It typically comes from malicious website downloads, spam emails, or connecting to infected devices.

Ransomware, a particularly harmful type of malware, holds a company's valuable data hostage, demanding a ransom payment for decryption. If payment is not made, the files will be lost, or compromised information will be shared publicly. Attackers target small businesses, as they are often more likely to pay a ransom due to inadequate backups and the urgent need to resume operations.

How to Protect Your Business:

• Use reputable antivirus and anti-malware software.
• Regularly back up your data to an offsite location.
• Educate employees about safe internet practices and avoiding suspicious links.

3. Weak Passwords

Weak passwords are a common cybersecurity risk that small businesses often overlook. Cybercriminals frequently exploit this vulnerability by using various techniques to guess easy-to-remember passwords like "Password123" or by recycling the same password across multiple accounts.

Additionally, sharing passwords among team members without restrictions or protection can increase the risk. Cybercriminals use methods such as brute-force attacks, where high-speed programs rapidly attempt to guess passwords, and dictionary attacks, where common words and phrases are tried.

They also often rely on personal information, such as birthdays or pet names, in their password-guessing attempts.

How to Protect Your Business:

• Implement strong password policies requiring complex and unique passwords.
• Use password managers to securely store and manage passwords.
• Enable MFA to add an extra layer of security.

4. Inadequate or Late Software Updates

Patch management ensures all devices, applications, and networks are promptly updated with the latest security patches and software updates. Failing to do so leaves your systems vulnerable to exploitation by cybercriminals.

Many small businesses rely on employees to manually update their devices, leading to inconsistencies and unaddressed vulnerabilities.

How to Protect Your Business:

• Enable automatic updates for all software and systems.
• Use centralized patch management tools to ensure all devices are up-to-date.
• Regularly audit systems to verify they are current with security patches.

5. Distributed Denial-of-Service (DDoS) Attacks

DDoS attacks aim to disrupt or halt the operation of an online service by overwhelming it with artificial traffic, rendering it unusable for legitimate users. These attacks can devastate a small business's online presence, leading to lost revenue and damaged reputation. Therefore, ensuring strong website security is essential for protecting small businesses from online threats.

How to Protect Your Business:

• Use a reliable web hosting service with built-in DDoS protection.
• Implement network monitoring tools to detect and mitigate unusual traffic spikes.
• Have a response plan in place to quickly address and recover from DoS attacks.

6. Man-in-the-Middle (MitM) Attacks

During a MitM attack, a cybercriminal intercepts and potentially alters communications, transactions, and data transfers between the victim and the service they're trying to access. This can lead to the unauthorized acquisition of sensitive information, such as login credentials and financial data.

Effective small business risk management involves implementing robust measures to prevent and mitigate MitM attacks.

How to Protect Your Business:

• Use encrypted communication channels, such as HTTPS and VPNs, to protect data in transit.
• Implement strong authentication mechanisms, including MFA, to verify user identities.
• Educate employees about the risks of using public Wi-Fi networks for sensitive transactions.

7. Data Breaches

Data breaches are a major threat to small businesses, and they occur when sensitive or confidential information is accessed, stolen, or exposed without authorization. This can happen due to a lost or stolen device, a successful phishing attack, or an employee's accidental mishandling of data. Data breaches can lead to significant financial and reputational damage.

How to Protect Your Business:

• Encrypt sensitive data both in transit and at rest.
• Implement strict access controls to limit who can view and handle sensitive information.
• Regularly train employees on data protection best practices and incident response procedures.

8. Insider Errors

Cyber threats can also come from within an organization. Insider risks refer to potential data breaches or security incidents caused by employees, contractors, or others with legitimate access to your company systems and data.

These risks often arise from unintentional mistakes or lapses in judgment. For example, an employee might accidentally mishandle sensitive information or share login credentials with unauthorized individuals, unaware of the potential security implications. Or, an employee might inadvertently expose company data by failing to follow proper security protocols or falling victim to a phishing attack.

How to Protect Your Business:

• Conduct regular cybersecurity training for all employees.
• Implement strict access controls and monitor user activities.
• Foster a culture of security awareness within your organization.

How to Prevent Cybersecurity Attacks

To effectively safeguard against cyber threats, adopt a layered security approach, also known as defense in depth. This strategy involves implementing multiple layers of security controls to create a robust defense system, making it more difficult for attackers to gain unauthorized access to systems and data.

• Secure your devices and WIFI network with a solution from a trustworthy provider. Safeguard all your devices, from computers to mobile phones, covering Windows, macOS, Android & iOS and Windows Server​ systems. This will automatically scan for threats and prevent them from infecting your computer and network.
• Educate your employees. One of the simplest and most cost-effective ways to manage a small business's data is by properly educating everyone who has access to it. If they understand the importance of passwords and data security measures, it increases the chances of your entire business staying safe.
• Provide the right tools. Equip your team with password managers, VPNs, scam detection and digital identity protection tools to help them stay safe.

Small Business? Not Sure Where to Start? Choose the Best Cybersecurity for Your Small Business

If you're a small business owner wanting to protect your business without hiring an IT expert, consider Bitdefender Ultimate Small Business Security. It's a simple yet powerful cybersecurity solution designed for small business owners and entrepreneurs with 25 or fewer employees.

With this solution, we want to demystify the process of cyber security for small businesses, enabling them to be as secure as possible from cyber-attacks and support them to:

Save money and time by preventing cyber threats: Protect your business from email breaches, scams, ransomware, data leaks, and identity theft and avoid costly recovery expenses and legal implications.

Ensure safe remote work for your team: Allow team members to work from anywhere without sacrificing security or productivity.

Boost revenue through trust: Protect customer data and your company's reputation to build trust and loyalty, leading to more referrals and increased revenue.

Empower your team: Give your team the tools and knowledge to stay safe online without expensive external training.

Empower yourself: Manage your cybersecurity like an expert without being one.

You can install Bitdefender Ultimate Small Business Security yourself without disrupting your operations and manage your cybersecurity with a simple, unified dashboard.

Check out plans, here: Bitdefender Ultimate Small Business Security