As cyber threats continue to evolve, so must our strategies for defending against them. For small and mid-sized businesses (SMBs), the digital world presents an array of risks, from Business Email Compromise (BEC) to ransomware and even the challenges that come with moving to the cloud. Whether your business operates fully in-office, remotely, or in a hybrid environment, cybersecurity should be at the top of your mind because, no matter your size, you’re a target.
What are the most significant cyber threats to SMBs, and how can you begin protecting your essential business data? Here’s what the cybercriminals don’t want you to know.
Top Three Cyber Threats to SMBs
Understanding your business’s key threats is essential to building a robust defense. While cyber threats are numerous and varied, three consistently top the list for SMBs:
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Business Email Compromise (BEC) — The Cost-Effective Way to Steal Your Identity
The number one threat facing SMBs today is Business Email Compromise. Why? Because it’s incredibly cheap and easy for cybercriminals to execute.
BEC attacks involve tricking employees into handing over their credentials through socially engineered emails. It could be as simple as an email that appears to come from your CEO asking for a password reset or access to sensitive information. Once the hacker has access to your employee’s email, they can impersonate them, access other systems, reroute payments, or steal sensitive data. The integration of generative AI allows them to craft error-free, highly authentic-looking phishing emails, making it increasingly difficult for employees to spot the scam (we’ll talk more about AI’s role on both sides of the cybersecurity war in an upcoming post).
According to data from the FBI’s Internet Crime Complaint Center (IC3), BEC attacks led to nearly $2.95 billion in reported financial losses in 2023, marking it the second most costly cybercrime behind investment fraud. The number of complaints also remained high, with over 21,000 incidents reported for the year. These figures highlight the growing sophistication and impact of BEC attacks, which have increased by more than 58% in terms of financial losses since 2020.
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Ransomware — Holding Your Business Hostage
Ransomware remains one of the most damaging and disruptive threats to SMBs. It’s designed to encrypt your data and hold it hostage until you pay a ransom to regain access — often with no guarantees that paying the ransom will restore your data.
Ransomware groups like LockBit and RansomHub continue to target small and mid-sized businesses, exploiting vulnerabilities in outdated systems and relying on employees to make critical mistakes, such as clicking on a malicious link. In 2023, ransomware attacks surged globally, with a 72% increase in attacks targeting SMBs, and 2024 is set to set a new record.
The cost of ransomware goes far beyond the ransom itself. Business downtime, lost revenue, and the reputational damage from a data breach can cripple a company. And with Ransomware-as-a-Service (RaaS) making these tools more accessible to cybercriminals, it’s a growing risk for businesses of all sizes.
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The Human Factor — The Cloud Can Leave You Exposed
With the rise of hybrid and remote workforces, many businesses have shifted their operations from on-premise servers to the cloud. While cloud solutions offer flexibility, scalability, and convenience, they also expose businesses to new risks.
When employees were confined to the office, businesses could build a secure perimeter around their on-premise environment. But with remote work becoming the new norm, that perimeter is gone. Now, companies need to secure data and applications on-premise and in the cloud — a challenge requiring access controls, application controls, and data protection strategies.
Despite their willingness to invest in new tools and technologies, many small and mid-sized businesses (SMBs) face significant challenges in fully securing their cloud environments. According to recent reports, 48% of organizations identified budget constraints as a major obstacle to cloud adoption. SMBs, in particular, struggle with managing multi-cloud environments and controlling long-term costs, which makes it difficult to implement comprehensive security measures. Additionally, as hybrid workforces expand, the attack surface grows, making it harder for SMBs to secure both on-premise and cloud systems.
This complexity, combined with a lack of resources, makes it increasingly difficult for smaller businesses to keep up with evolving threats.
The CIA Triad — Protecting Your Business from Every Angle
Cybersecurity threats can be understood through the lens of the CIA Triad: Confidentiality, Integrity, and Availability. The CIA Triad is a fundamental concept in cybersecurity and provides a helpful framework for understanding how attackers target your business. These three pillars represent the core objectives of most cyberattacks: attackers either want to steal your sensitive information, compromise the integrity of your systems, or deny you access to your data.
- Confidentiality: Attackers seek to steal identities or access sensitive information, like customer data or financial records. This is often done through phishing attacks, where employees are tricked into giving up their login credentials.
- Integrity: Once inside your network, cybercriminals work to breach the integrity of your systems by launching malware or advanced persistent threats (APTs). These attacks can go unnoticed for weeks or even months, quietly compromising your operations.
- Availability: Finally, attackers often turn to ransomware, locking you out of your systems until a ransom is paid. This freezes the availability of your data and can bring business operations to a standstill.
The best way to secure your business is to apply the principles of CIA to the data and systems you care about most. Ask yourself: How am I ensuring the confidentiality, integrity, and availability of my most critical information?
Securing Your Business in 2024 — A Call to Action
The cybersecurity landscape in 2024 is more complex than ever. From Business Email Compromise to RaaS and the challenges of securing cloud-based operations, SMBs face unprecedented risks.
So, what can you do? Start by applying the CIA Triad to your data and systems. Ensure that you’re protecting the confidentiality, integrity, and availability of your critical information — and work with a trusted partner like Cloud at Work to secure your cloud infrastructure. Cloud at Work’s virtual private cloud hosting service offers a critical solution by providing a secure, managed environment tailored to the needs of SMBs — specifically those running Sage applications.
The cyber threats facing SMBs are real, but they’re not insurmountable. You can navigate the cybersecurity landscape and protect your business by staying informed, implementing the right technologies, and working with the right partners. Contact us to learn how Cloud at Work can help safeguard your business and vital Sage applications in this complex threat landscape.