When you think of cyberattacks, you might imagine big corporations being the prime targets: banks, global retailers, or tech giants. But here’s the reality: small businesses are often more at risk. Why? Because attackers know SMBs usually lack the security budgets, dedicated IT teams, and layered protections that larger enterprises rely on.
At Human Computing, we work closely with organizations across industries, helping them understand not just what cybersecurity risks they face, but why these risks matter, and how to take practical, affordable steps to defend against them. This article breaks down the top cybersecurity threats to small businesses in 2025 and outlines steps you can take to address them.
1. Phishing Attacks: The Gateway to Breaches
Phishing is still the number one way hackers get into small businesses. Phishing is the practice of sending emails or other messages that appear to be from reputable companies, with the intention of inducing individuals to reveal personal information, such as passwords and credit card numbers. These attacks come in the form of emails, texts, or even social media messages that look legitimate until an employee clicks a malicious link or downloads a fake attachment. For example, a Kentucky-based manufacturing firm lost thousands after a fraudulent invoice email convinced an employee to wire money to a fake vendor.
Why it matters: Phishing is a low-cost tactic for attackers but has high-impact consequences for businesses. One wrong click can compromise passwords, leak sensitive data, or install malware.
Prevention tip: Invest in employee cybersecurity training, use email filtering, and implement multi-factor authentication (MFA).
2. Ransomware: A Growing Threat to SMBs
Ransomware locks you out of your own systems until you pay attackers, sometimes thousands, sometimes millions. While larger companies make headlines, small businesses are increasingly targeted because criminals know they’re more likely to pay to get back online quickly. In many cities, local SMBs have seen ransomware hit everything from law firms to health clinics.
Why it matters: Downtime can crush a small business’s ability to serve customers. Recovery costs often exceed the ransom itself.
Prevention tip: Keep regular, secure backups of your data and patch software regularly to close vulnerabilities.
3. Weak or Reused Passwords
It may sound basic, but password issues remain a significant risk. Many small businesses don’t enforce strong password policies, making it easy for hackers to guess or crack logins. For example, in Denver, a boutique retailer faced a data breach after an employee reused the same password across multiple accounts that were exposed in a previous breach.
Why it matters: Compromised credentials open the door to email, payroll, customer databases, and more.
Prevention tip: Use a password manager and require MFA (Multi-Factor Authentication) for all critical accounts.
4. Insider Threats (Both Accidental and Malicious)
Not every cyber risk comes from outside. Sometimes employees accidentally overshare sensitive data, or worse, a disgruntled staff member intentionally compromises systems. For example, an SMB in Irvine suffered reputational damage when a well-meaning employee uploaded client data to a public cloud folder without encryption.
Why it matters: Insider risks are harder to detect because they come from trusted users with access.
Prevention tip: Implement strict access controls and use lightweight monitoring tools like SARA from Human Computing to protect sensitive data being shared with AI without slowing down employees.
5. Outdated Software and Unpatched Systems
Hackers love outdated software. If you’re running legacy systems or delaying updates, you’re giving attackers an easy way in.
Why it matters: Known vulnerabilities are often exploited within weeks of being published.
Prevention tip: Automate updates where possible, retire unsupported software, and work with a trusted IT partner to maintain a proactive patching schedule.
6. Cloud Security Gaps
Most SMBs rely on cloud platforms like Microsoft 365, Google Workspace, or CRM systems. But misconfigured cloud settings are one of the fastest-growing causes of breaches.
Why it matters: If data storage or sharing settings aren’t secured, sensitive information may be exposed to the public internet.
Prevention tip: Regularly review access controls, set least-privilege permissions, and use built-in security monitoring from your cloud providers.
Are Small Businesses Too Small To Be Hacked?
No, they’re not. Phishing emails, ransomware, weak passwords, and outdated systems aren’t just problems for big corporations; they’re the #1 cybersecurity risks crushing SMBs in 2025.
The scary part?
- One wrong click can drain your accounts.
- A single data breach can destroy customer trust.
- And downtime costs can hit $200K+, enough to shut many small businesses down.
The good news: you don’t need enterprise-level budgets to fight back.
With smart training, lightweight tools, and affordable monitoring like SARA from Human Computing, you can protect your business, your customers, and your future.
If your employees use AI, you may also want to check out our article on How Employees Using AI Can Put Your Business at Risk (and How SMBs Can Stay Protected)
