We dig into the numbers, risks, and what most owners still don’t know

Why are small businesses being targeted by cybercriminals at such a staggering rate-and why are so many still unprepared? These are the questions that drove our investigation into the current state of cybersecurity across the small business landscape.

At first glance, it might seem like hackers would go after large corporations with more to gain. But the data tells a different story. According to recent studies, nearly 43 percent of cyberattacks now target small businesses. Why? Because these businesses often have weaker defenses, fewer security policies, and limited technical oversight.

We examined over 200 case studies from breach incidents in 2023 and 2024. A clear pattern emerged: phishing emails, unsecured remote access, and outdated software were the most common points of entry. In nearly 70 percent of cases, human error played a key role. And in most of these breaches, the companies had no formal incident response plan.

What’s more alarming is how few businesses are aware of their risk exposure. In interviews with 40 small business owners, over half believed they were “too small” to be targeted. Many assumed that having antivirus software and a firewall was enough. But in today’s digital environment, that’s simply not true.

Cybercrime has become a volume game. Hackers use automated bots to scan for vulnerabilities-meaning even if you’re not specifically targeted, you can be compromised simply for having weak infrastructure. This isn’t about prestige anymore. It’s about opportunity.

We also looked into the cost impact. On average, a single breach at a small business resulted in $120,000 in damages-ranging from downtime and lost revenue to legal fees and brand damage. For a business operating on tight margins, this kind of hit can be devastating.

The root issue, according to cybersecurity analysts we spoke with, is a lack of awareness and prioritization. Many small businesses are juggling so many operational challenges that cybersecurity gets pushed to the back burner. But neglecting it doesn’t make the risk disappear-it makes it more likely to manifest.

So what can be done? We compiled a list of practical, research-backed steps that any small business can take: enable two-factor authentication, train staff to recognize phishing, regularly update systems, back up data offsite, and limit access to sensitive information. These aren’t luxury fixes-they’re foundational.

We also urge businesses to ask harder questions of their vendors. Is your CRM secure? How often are your tools patched? Who has access to your systems through third-party integrations? The answers to these questions could reveal your next vulnerability-or your next opportunity to tighten security.

In closing, our deep dive uncovered a critical disconnect between risk and perception in the small business world. Cyber threats aren’t hypothetical. They’re happening every day, often to the least prepared companies. The businesses that ask the tough questions now are the ones most likely to survive and thrive later.

Also Read: Breaking Down Cyber Risk: What 2025 Businesses Must Do Now