Cyber scams have become a year-round, ongoing challenge for businesses of all sizes. But the threats have become particularly notable for small companies, as they often falsely consider themselves less vulnerable than larger organizations. Threats occur constantly throughout the year – not just during seasonal periods such as tax season, back-to-school, and holidays. Also, email scams are the most prevalent types of cyberthreats.  

At powersolution.com, we’ve noticed small businesses are often targeted due to having fewer cybersecurity resources than large enterprises. Industry studies show that nearly 60% of small businesses go out of business within 6 months of a major cyberattack. Cyber insurance claims from small businesses have risen nearly 70% from 2022 to 2024, driven largely by ransomware and Business Email Compromise (BEC).

Top Cyberthreats for Small Businesses

🚩 Phishing attacks are the most common attack vector, according to the 2024 Verizon Data Breach Investigations Report. Phishing is involved in over 30% of breaches in small organizations. These attacks are comprised of fraudulent emails, texts, or calls attempting to trick employees into revealing sensitive information such as login credentials or financial information.

🚩 Ransomware is malicious software that encrypts business data, demanding payment to restore access. Ransomware is increasingly common and can be financially devastating. Average ransom demands in 2024 for small businesses were at the low end at about $5,000, ranging up to over $100,000, with additional losses from downtime, recovery costs, and reputational damage.

🚩 Business Email Compromise (BEC) is where attackers impersonate company executives or vendors to trick employees into wiring money or sharing sensitive data. BEC attacks are trending higher due to the increased availability of spoofing tools and AI-generated messages.

🚩 Malware and Viruses are comprised of malicious code that disrupts, damages, or gains unauthorized access to systems. This can lead to data breaches, system failures, or network downtime.

🚩 Data Breaches involve unauthorized access to sensitive customer, employee, or business data.

🚩 Insider Threats occur when employees or contractors misuse their access, either maliciously or accidentally.   Approximately 25% of small business breaches involve insiders, often due to poor access controls or lack of training.

Cybersecurity Risk Reduction Checklist

Here’s a practical cybersecurity checklist tailored specifically for small businesses, focusing on affordable, high-impact actions to reduce risk:

1. Protect Your Accounts & Devices

• Use Multi-Factor Authentication (MFA) on all accounts (especially email, banking, cloud services).
• Require strong, unique passwords for each account.
• Enable automatic updates for all software, apps, and operating systems.
• Install and maintain reputable antivirus/anti-malware software on all devices.

2. Train Employees

• Provide regular cybersecurity training (e.g., how to spot phishing emails, safe internet habits).
• Send out phishing simulations quarterly to test employee awareness.
• Establish a clear reporting process for suspicious emails or cyber incidents.

3. Secure Your Data

• Back up critical data automatically and regularly (daily or weekly), storing backups offsite or in the cloud.
• Encrypt sensitive data both at rest and in transit.
• Limit access to sensitive data by using role-based permissions (only give access to those who need it).

4. Secure Your Network

• Use a firewall for both office networks and remote workers.
• Secure your Wi-Fi with encryption and a strong, unique password.
• Create a guest network for visitors to avoid exposing internal systems.

5. Create & Test Incident Plans

• Develop a cyber incident response plan (what to do during a breach or ransomware attack).
• Practice tabletop exercises or simple drills with your team.
• Maintain a list of emergency contacts: IT provider, cyber insurance, legal, and law enforcement.

6. Keep Software & Systems Updated

• Remove unused software and close old user accounts.
• Update or replace any end-of-life software/hardware that no longer receives security patches.
• Regularly review and update your systems’ security settings.

7. Policy & Compliance

• Write and share an acceptable use policy for employees.
• If handling sensitive customer data (like health or financial info), ensure compliance with applicable regulations.

8. Invest in Cyber Insurance

• Consult a broker for a policy that covers ransomware, data breaches, legal costs, and business interruption.
• Ensure coverage includes third-party liability if customer data is compromised.

Need more help with understanding cybersecurity techniques and mitigating your firm’s overall cybersecurity risks?

Let’s talk. Your data—and your business—deserve better protection.

📞 Call us at 201-493-1414

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