Why Small Businesses are Prime Targets for Hackers

In the ever-evolving digital landscape, small businesses often operate under the misconception that they are not prime targets for cyber attacks. The prevailing belief is that hackers primarily focus on large corporations with substantial assets. However, this myth couldn’t be further from the truth. In reality, small businesses are increasingly becoming the preferred targets for cybercriminals. Let’s delve into why this is the case and what small businesses can do to protect themselves.

The Reality of Cyber Threats to Small Businesses

1. Low Hanging Fruit
   Cybercriminals often view small businesses as low hanging fruit. According to the 2022 Verizon Data Breach Investigations Report, 43% of data breaches involved small and medium-sized businesses (SMBs). The perception that small businesses lack robust security measures makes them attractive targets for hackers looking for an easy score. Additionally, small businesses might not have the resources to implement comprehensive cyber security protocols, making them more vulnerable to attacks.
2. Valuable Data
   Small businesses handle valuable data, including personal customer information, payment details, and intellectual property. This data is highly valuable on the black market. For instance, a 2021 report by the Ponemon Institute found that 66% of small businesses experienced a cyber attack in the past year, emphasising the high risk they face. Even small amounts of sensitive data can be lucrative for cybercriminals, who can sell this information or use it for further attacks.
3. Ransomware Attacks
   Ransomware is a growing threat, and small businesses are not immune. Cyber security firm Sophos reported in their 2023 State of Ransomware report that 55% of small businesses experienced a ransomware attack in the past year. Small businesses often lack the resources to defend against or recover from such attacks, making them easy targets for ransom demands. The average ransom demand for small businesses has also been increasing, with some reaching tens of thousands of dollars, which can be crippling for a small enterprise.
4. Supply Chain Vulnerabilities
   Hackers often target small businesses to exploit their relationships with larger enterprises. By breaching a small business, attackers can gain access to the supply chain and subsequently infiltrate larger companies. This tactic was notably employed in the 2020 SolarWinds attack, which affected numerous organisations worldwide. Small businesses serve as entry points for attackers looking to compromise larger targets, making their security critically important.

• Implement Multi-Factor Authentication (MFA): MFA adds an extra layer of security by requiring users to provide two or more verification factors to gain access to a resource. According to Microsoft, MFA can block over 99.9% of account compromise attacks. Implementing MFA can significantly reduce the risk of unauthorised access, even if passwords are compromised.
• Regular Software Updates: Keeping software up to date ensures that vulnerabilities are patched promptly. The Australian Cyber Security Centre (ACSC) advises businesses to enable automatic updates wherever possible. Regularly updating all software, including operating systems, applications, and security tools, is crucial to protect against known vulnerabilities.
• Employee Training: Human error is a significant factor in many cyber attacks. Providing regular cyber security training helps employees recognise phishing attempts and other malicious activities. The ACSC offers resources and guidelines for training staff on cyber security best practices. Regular training sessions can help employees stay vigilant and informed about the latest threats and how to respond to them.
• Backup and Recovery: Regularly backing up data and ensuring it can be restored quickly is crucial. This practice mitigates the damage caused by ransomware attacks. The ACSC recommends the 3-2-1 backup rule: keep three copies of your data, on two different types of media, with one copy stored offsite. Implementing a robust backup strategy ensures that data can be recovered quickly in the event of an attack, minimising downtime and data loss.
• Invest in Security Solutions: Small businesses should invest in robust cyber security solutions such as firewalls, antivirus software, and endpoint protection. Solutions like SentinelOne and CrowdStrike offer advanced protection against a wide range of cyber threats. Investing in comprehensive security tools can provide multiple layers of defence, making it harder for attackers to breach your systems.

The myth that small businesses are not targets for hackers is not only false but also dangerous. Small businesses must recognise the reality of cyber threats and take proactive measures to protect their assets and customer data. By implementing strong cyber security practices and staying informed about potential threats, small businesses can significantly reduce their risk of falling victim to cyber attacks.

If you’re a small business looking to bolster your cyber security, contact Spell Shield Technologies today. Our expert team can help you implement the right solutions to keep your business safe.