Don't Let Cyber Risks Derail Your Business
In today’s hyper-connected world, cybersecurity is a top concern for small and medium-sized businesses (SMBs). With limited IT resources and increasing threats, SMBs are prime targets for cybercriminals. A breach can lead to costly downtime, data theft, and reputational damage.
Here’s a breakdown of the top 20 cybersecurity threats SMBs face, how they occur in real-world scenarios, and actionable steps to protect your business.
Phishing Attacks
Example: A finance employee receives an email appearing to be from the CEO requesting a wire transfer. The email contains a spoofed lookalike domain (e.g., ceo@yourcompany.co instead of ceo@yourcompany.com), and the employee unknowingly wires funds to the attacker.
Protection:
- Enable multi-factor authentication (MFA) on all accounts.
- Upgrade Spam and Phishing Protection.
- Train employees to spot phishing red flags, such as urgent requests and unfamiliar email addresses.
Learn more in our guide: CEO Phishing Explained: How to Protect Your Business.
Business Email Compromise (BEC)
Example: Attackers gain access to an executive’s email account and send fraudulent invoices to clients, redirecting payments to their bank accounts.
Protection:
- Ensure MFA in place.
- Upgrade Spam and Phishing Protection.
- Require dual approval for any large financial transactions.
- Regularly monitor and audit all financial accounts.
Ransomware
Example: An employee unknowingly downloads a malicious attachment in a fake shipping confirmation email, encrypting all company files. The attacker demands $50,000 in Bitcoin for decryption.
Protection:
- Implement 3-2-1 backups (three copies of data, two locations, one offsite).
- Deploy endpoint detection and response (EDR) and managed detection and response (MDR) software like Microsoft Defender for Business.
Weak Passwords and Credential Stuffing
Example: An employee reuses a personal password for their business email. Attackers use stolen credentials from a past data breach to log in to the company’s account.
Protection:
- Use a password manager to ensure employees create and store strong, unique passwords.
- Enable MFA to protect against credential reuse.
Check out our guide: Why Your Business Needs a Password Manager.
Insider Threats (Malicious or Negligent Employees)
Example: A disgruntled employee leaving the company steals sensitive client lists and sells them to a competitor.
Protection:
- Limit access to sensitive data on a need-to-know basis.
- Implement Data Loss Prevention (DLP) software.
- Regularly review and update access permissions.
Social Engineering Attacks
Example: A hacker pretends to be IT support, calls an employee, and convinces them to reset their password, giving the attacker access to business systems.
Protection:
- Train employees to verify any unexpected requests for account changes or data sharing.
- Implement an internal verification system for IT-related requests.
Insecure Cloud Storage & Misconfigurations
Example: A company stores client data on Google Drive but fails to configure access permissions properly, exposing sensitive files to the public.
Protection:
- Conduct regular audits of cloud storage permissions.
- Implement role-based access control (RBAC).
Learn more about securing your cloud storage in Why Google and Microsoft Aren’t Backing Up Your Data.
Shadow IT (Unauthorized Apps & Devices)
Example: Employees use personal Google Drive accounts to share business files, bypassing security protocols.
Protection:
- Educate employees on the risks of unauthorized apps.
- Implement data loss prevention (DLP) tools to block unapproved sharing.
Malware from Third-Party Vendors
Example: An IT contractor introduces malware through an infected USB device.
Protection:
- Require vendors to adhere to security protocols.
- Use antivirus and malware detection tools on all devices.
Unpatched Software & Systems
Example: A law firm using an outdated version of Windows 10 is compromised by a known vulnerability.
Protection:
- Regularly update and patch all software and operating systems.
- Use automated patch management tools.
Find out how regular system reboots help prevent vulnerabilities in Why Rebooting Your Windows Computer Boosts Security.
Public Wi-Fi Attacks (Man-in-the-Middle Attacks)
Example: An employee logs into the company VPN using unsecured coffee shop Wi-Fi, where a hacker intercepts their login credentials.
Protection:
- Enforce the use of VPNs and secure mobile device management (MDM).
- For more advanced, always-on protection than provides VPN you could also implement SASE or ZTNA solutions.
- Educate employees on the risks of public Wi-Fi.
- Educate employees on the risks of leaving devices unlocked in public also.
Distributed Denial-of-Service (DDoS) Attacks
Example: A botnet floods an e-commerce website with fake traffic, making it inaccessible during a major sale.
Protection:
- Implement DDoS protection services and content delivery networks (CDNs).
- Monitor traffic patterns to detect anomalies early.
Mobile Device Security Risks
Example: An employee loses a smartphone containing sensitive company data.
Protection:
- Require device encryption and remote wipe capabilities through MDM.
- Enable MFA on all mobile-accessible accounts.
Learn more about secure device policies in: BYOD Policies: Security Risks and Solutions.
Supply Chain Attacks
Example: An outsourced HR software provider is breached, exposing payroll data and Social Security numbers.
Protection:
- Conduct regular security assessments of third-party vendors.
- Require vendors to have SOC 2 or similar compliance certifications.
Fake Invoices & Financial Fraud
Example: Attackers send fake invoices to the accounts payable department, leading to unauthorized payments.
Protection:
- Verify all payment requests and new vendors by phone.
- Implement dual approval for financial transactions.
IoT Device Vulnerabilities
Example: A smart thermostat connected to the office Wi-Fi is exploited, giving attackers access to business systems.
Protection:
- Segment IoT devices from critical networks.
- Change default passwords on all IoT devices.
Lack of Data Backups & Recovery Plans
Example: A ransomware attack encrypts data, and the business has no recent backups.
Protection:
- Maintain offsite backups and regularly test data recovery procedures.
- Create a Disaster Recovery / Incident Response Plan (DR/IR)
Data Leakage from Misuse of Email
Example: An employee accidentally emails sensitive client information to the wrong recipient.
Protection:
- Implement email data loss prevention (DLP) tools.
- Train employees on proper data handling procedures.
Zero-Day Exploits
Example: Attackers exploit a vulnerability in Microsoft Exchange before a patch is available.
Protection:
- Use threat intelligence tools to detect zero-day attacks.
- Apply patches as soon as they are released.
Compliance Violations & Regulatory Risks
Example: A clinic using unsecured email to send patient records violates HIPAA regulations, leading to fines.
Protection:
- Ensure compliance with regulatory frameworks such as PCI-DSS, SOC 2, and HIPAA.
- Use encryption for sensitive data storage and transmission.
Cybersecurity & Financial Controls Action Plan for SMBs
Now that we’ve outlined the top threats, it's essential to implement both immediate and long-term measures to protect your business.
Short-Term Actions (1-3 Months)
Start by focusing on quick, high-impact improvements that address immediate risks:
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Limit Access to Critical Accounts
- Separate financial and administrative access to reduce insider risks.
- Use view-only permissions for financial data when appropriate.
- Risk Addressed: Insider threats, unauthorized access.
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Verify Payments and Reconcile Financial Records Regularly
- Reconcile bank transactions weekly to detect fraud early.
- Contact vendors directly to verify payment requests before processing.
- Risk Addressed: Invoice fraud, business email compromise (BEC).
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Deploy Advanced Endpoint Protection
- Implement tools like Microsoft Defender to identify and block malware, ransomware, and other threats.
- Risk Addressed: Malware, ransomware, data breaches.
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Monitor for Advanced Threats 24/7
- Use managed detection services to continuously watch for security events.
- Leverage machine learning to identify irregular financial activities.
- Risk Addressed: Persistent attacks, insider risks.
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Upgrade Phishing and Spam Filters
- Strengthen your email security by adding advanced filtering solutions.
- Risk Addressed: Phishing, social engineering.
Long-Term Actions (3+ Months)
These measures focus on achieving sustained cybersecurity maturity:
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Create a Comprehensive Incident Response Plan
- Document procedures to respond to fraud, breaches, and ransomware.
- Identify key contacts, including banking partners, for immediate action.
- Risk Addressed: Ransomware, financial fraud, data breaches.
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Assess Vendor Security Practices
- Conduct regular audits to ensure third-party vendors adhere to data security standards, such as SOC 2.
- Risk Addressed: Supply chain vulnerabilities, third-party risks.
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Implement Mobile Device Management (MDM)
- Ensure all devices used for business operations are encrypted and capable of being wiped remotely.
- Risk Addressed: Device loss, data leakage.
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Schedule Regular Security Audits and Penetration Tests
- Engage ethical hackers to test for vulnerabilities and evaluate your security posture.
- Risk Addressed: Zero-day exploits, system weaknesses.
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Ensure Compliance with Industry Standards
- Stay up to date with regulations like PCI-DSS and GDPR.
- Use encryption and secure payment methods to protect sensitive data.
- Risk Addressed: Regulatory violations, data theft.
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Automate Monitoring and Security Processes
- Implement automated systems to flag suspicious activities and reduce human error.
- Risk Addressed: Fraud, manual mistakes, insider risks.
Summary: Key Cybersecurity Priorities
To protect your business, prioritize the following:
- Implement multi-factor authentication (MFA) on all essential systems.
- Conduct regular employee training to prevent fraud and phishing.
- Enforce dual approval for major financial transactions.
- Ensure secure, frequent backups following the 3-2-1 rule.
- Monitor bank and payment activity with alerts and regular reconciliations.
By following these strategies, SMBs can reduce their risk of cyberattacks and safeguard their operations. Investing in proactive security measures today can help you avoid costly incidents in the future.
For more advice on improving your company's security posture, check out Cybersecurity Best Practices for Small Businesses. If you're unfamiliar with key cybersecurity concepts, our guide on Basic Cybersecurity Terms is a great place to start.