Top Three Cybersecurity Threats Facing Small Enterprises

In the current digital landscape, small businesses face increasingly sophisticated cyber threats, ranging from organized attacks on software supply chains to state-sponsored exploitation of undiscovered vulnerabilities. As the use of artificial intelligence for malicious purposes grows, small enterprises must prioritize their defense against the types of cyberattacks most likely to succeed against them.

Limited IT budgets and small cybersecurity teams force many small businesses to rely on a handful of employees, or even sole proprietors, to maintain online safety. This reality highlights the importance of understanding the most pressing cybersecurity threats they confront. Here, we outline the three primary cybersecurity threats facing small businesses, which may seem basic yet are effective precisely due to their simplicity.

1. Phishing

Phishing attacks involve cybercriminals tricking individuals and businesses into divulging sensitive information, such as credit card numbers or login credentials for essential online accounts. Attackers send messages—typically emails or texts—masquerading as legitimate communications from respected companies like Slack, Uber, FedEx, or Google. These messages often alert recipients to alleged problems with their accounts, such as necessary password updates or policy changes requiring login verification.

When victims click the links embedded in these deceptive messages, they are directed to a counterfeit website controlled by the attackers. These fraudulent sites replicate genuine interfaces using similar color schemes, logos, and layouts, prompting unsuspecting users to enter their credentials. Unfortunately, the entered information is transmitted directly to the cybercriminals.

The larger threat of phishing lies in its adaptability; where early scams primarily employed email, modern phishing attempts reach victims through malicious websites, SMS messages, social media, and even mobile app downloads. A recent report identified over 22,800 phishing apps on Android devices, disguised as popular apps like TikTok and Spotify. Users tricked into logging in may inadvertently reveal credentials that could compromise a small business’s financial accounts and sensitive information.

Furthermore, if hackers exploit stolen credentials to access customer data, businesses could face additional financial burdens related to data breach notifications mandated by state regulations.

How to protect your business:

– Implement unique, strong passwords for each online account, utilizing a password manager for storage and creation.
– Enable multifactor authentication on all critical business accounts to add an additional layer of security.
– Avoid clicking on links from unfamiliar senders.
– Never input login credentials directly from an email or message; instead, access websites directly through a secure browser.

2. Social Media Account Takeover

Social media platforms serve not just as promotional tools, but often as the backbone of many small businesses. Content creators, influencers, and other online entrepreneurs generate revenue through advertising and partnerships directly tied to their social media presence.

A breach of login credentials through phishing or other data infringement could jeopardize an entire enterprise. Prominent examples, such as the hacking of Linus Sebastian’s multiple YouTube channels, illustrate the potential fallout. Attackers exploited these channels to disseminate cryptocurrency scams, damaging the credibility and operational continuity of the business.

Social media account hacks not only target content creators but also represent a significant risk to any business with an online audience. Scammers gaining control of these accounts can send fraudulent messages in the business’s name or promote scams that damage reputations. Often, attackers can purchase compromised usernames and passwords from the dark web, gaining access due to password reuse across accounts.

How to protect your business:

– Use distinct, strong passwords for each account and employ a password manager for efficient management.
– Activate multifactor authentication on essential business accounts.
– Steer clear of unfamiliar links to avoid phishing attempts.
– Refrain from downloading attachments from unknown or unexpected emails, as they may contain malware.

3. Ransomware

Ransomware represents not just a cyberthreat but an existential risk to companies, capable of rendering computer systems inoperable and compromising crucial data, resulting in substantial financial loss. Often, media coverage focuses on ransomware attacks against large corporations, leading smaller businesses to dismiss the risk.

However, ransomware gangs target organizations regardless of size, as the deployment of ransomware has become simpler and more scalable through a “Ransomware-as-a-Service” model. This model allows lesser criminals to implement established ransomware tools while sharing profits with the developers. While some gangs, like LockBit, tend to focus on larger enterprises, groups like Phobos have proven successful in extorting smaller organizations.

Data from cybersecurity analysts shows that smaller victims are preferred targets for such gangs. Phobos operators demanded relatively modest ransoms, averaging $1,719 with median demands around $300.

How to protect your business:

– Block common forms of entry. Regularly patch known vulnerabilities in internet-facing software and strengthen login credentials for remote access tools.
– Prevent intrusions and stop malicious encryption. Deploy robust cybersecurity solutions designed to stop threats before they can cause harm.
– Create offsite, offline backups. Ensure backups are stored securely and tested regularly for fast recovery in emergencies.
– Eliminate attack vectors. After isolating threats, thoroughly cleanse all traces of malware to prevent subsequent attacks.

By understanding these threats and applying the recommended preventative measures, small businesses can fortify their defenses against a rapidly evolving cybersecurity landscape.