“Cybercrime only happens to big corporations.”
“They wouldn’t bother with a business as small as ours.”
“We don’t have anything worth stealing.”
If this sounds familiar, you’re not alone. Many small businesses operate under the dangerous myth that cybercriminals only target large corporations with deep pockets. Unfortunately, this couldn’t be further from the truth. Small businesses are not only vulnerable to cyberattacks—they are some of the most attractive targets for hackers.
This post explores why small businesses are prime targets for cybercriminals, what’s at stake, and how you can better protect your business from becoming another statistic.
Why Cybercriminals Go After Small Businesses
Contrary to popular belief, small businesses are not flying under the radar. Cybercriminals are opportunistic, and small businesses offer an irresistible combination of weaker defenses and enticing data. Here’s why hackers are increasingly going after smaller players:
- Smaller Businesses Have Fewer Cybersecurity Measures
Large corporations invest millions into cybersecurity to ward off attacks, hiring top-notch security teams, deploying advanced protection tools, and running ongoing threat detection.
Small businesses often lack the resources to implement such defenses—or believe they don’t need to. Many SMBs (Small and Medium-Sized Businesses) rely on basic antivirus software, outdated systems, and ad-hoc IT solutions. This creates soft targets ripe for exploitation.
According to a report by the National Cyber Security Alliance, 60% of small businesses do not have a cyberattack prevention plan in place. Hackers know this and exploit it.
- All Data Is Valuable
You might think your business doesn’t house sensitive information, but any business, no matter how small, handles valuable data. Consider what’s on your systems:
- Customer names, addresses, and contact details
- Payment details or financial information
- Employee records, including Social Security numbers
- Vendor contracts or corporate agreements
Even seemingly insignificant data—like accessing your email account—can enable more significant attacks like phishing, ransomware, or identify theft. For cybercriminals, any data is valuable if they can exploit or monetize it.
- They Can Use You as a Gateway
Your small business might be part of a larger supply chain. Hackers often breach smaller companies first because they serve as entry points to more substantial targets. For example, if you work with larger corporations, your compromised systems could serve as a stepping stone (or “pivot”) for attackers.
This happened during the infamous Target breach in 2013, where attackers gained access to Target’s systems by compromising a small HVAC vendor. The result? Target lost 40 million customer credit card records and spent over $200 million on the aftermath.
- Ransomware Is a Game-Changer
Ransomware has made small businesses an even more lucrative target. These attacks encrypt your files, making them inaccessible until you pay a ransom, often in cryptocurrency like Bitcoin.
What makes ransomware especially devastating for small businesses is cost. Most SMBs don’t have robust backup systems, leaving them with little choice but to pay the ransom or face losing their data forever. According to Coveware’s report, the average ransomware payment for small businesses in 2023 was $53,000—a staggering sum for many.
- Volume Over Value
Hackers don’t need to score multi-million dollar paydays every time. Targeting many small businesses with easy-to-exploit vulnerabilities is often more profitable than cracking a single large enterprise with advanced defenses.
Phishing emails, for example, can be sent to thousands of small businesses at virtually no cost. If only a fraction bites, it can yield a significant payday for cybercriminals.
The Real Cost of Getting Hacked
What happens if your small business falls victim to a cyberattack? It’s not just about recovering your data; the fallout can lead to devastating long-term consequences.
Financial Consequences
Recovering from a breach can cost tens of thousands of dollars. Aside from ransom payments, you’ll face costs like:
- Hiring forensic experts to investigate the breach
- Paying for downtime and lost productivity
- Fines and penalties for non-compliance with regulations (e.g., GDPR or CCPA)
Loss of Trust
A cyberattack can shatter the trust you’ve worked so hard to build with your customers. A breach can result in customers taking their business elsewhere, which is further compounded by the reputational damage that comes with publicized attacks.
Legal Implications
If you’re found negligent in protecting customer data, you could face lawsuits or regulatory penalties. This is particularly risky for businesses bound by industry regulations, such as healthcare practices (HIPAA) or financial services (PCI DSS compliance).
Business Closure
The Small Business Administration reports that 60% of small businesses shut down within six months of a major cyberattack. The combination of financial loss and reputational damage often proves too overwhelming to recover.
Don’t Fall Victim to “Famous Last Words”
Thinking your business is too small to get hacked can cost you everything. Cybercriminals don’t discriminate; if anything, they favor the path of least resistance—businesses that believe they’re safe simply because of their size.
The time to act is now. By implementing the right cybersecurity measures and fostering a culture of vigilance, you can significantly reduce your risk and protect what you’ve worked so hard to build.
If you’re unsure where to start, reach out to My Resource Partners for a FREE Cybersecurity Assessment. Our experts will help identify vulnerabilities and craft a plan tailored to your business needs. With your assessment in place, our technology advisors can quickly connect you with cybersecurity providers that are a great fit for small to mid-size businesses.
