Common Cyber Attacks + How to Keep Your Small Business Cyber Safe
While any business can be the target of a cyber attack, small businesses are particularly vulnerable. According to the Identity Theft Resource Center, 81% of small businesses experienced a security or data breach last year, with Artificial Intelligence (AI) powering more than 40% of attacks.
Why are small businesses so often targeted by cyber criminals?
Small businesses, despite their size, have information hackers want, such as customer data and large sums of money — without the same protections in place that larger businesses have. Often, cybercriminals see small businesses as easier targets because they lack a cybersecurity defense plan; many lack the resources for adequate training or professional IT solutions.
No matter the size of your business, there are essential steps you can take to safeguard your data, such as creating strong passwords, requiring multifactor authentication, and keeping software up to date.
Common Ways Hackers Attack Small Businesses
Here are some common methods hackers use — and tips to prevent these attacks from harming your small business:
Phishing
Phishing attacks are the most common cybersecurity threat businesses experience, especially small businesses.
In a phishing scam, hackers use emails or websites that appear to be from trusted sources to trick users into sharing personal information such as passwords, personally identifiable information, or banking details. Phishing is a type of social engineering, which is a technique used by hackers to gain trust and deceive individuals into revealing sensitive information.
“On average, an employee of a small business with less than 100 employees will experience 350% more social engineering attacks than an employee of a larger enterprise,” according to a 2021 study conducted by Barracuda Networks and shared by Forbes.
How to Prevent a Phishing Attack
An essential step to protect your business from phishing attacks is continuous training. Phishing tricks employees into opening malicious attachments or sharing sensitive information; it is crucial to train employees to recognize and report suspicious activity. Be aware of the red flags indicating that an email is suspicious.
Here are some common characteristics of phishing attempts:
- Attachments you weren’t expecting. Does the email mention an invoice you weren’t anticipating? Does the attached file sound like something you wouldn’t receive from this recipient? Don’t open or download the attachment. It may contain malware or ransomware that can infect your computer.
- Do you know the recipient? Give them a call to confirm the legitimacy of the email.
- Urgent action required. If the email indicates a sense of urgency, it may be a phishing attempt. Hackers don’t want users to take the time to think through the message they’ve received.
- Hyperlinks. Does the email seem odd, and are there hyperlinks to other websites? Often, hackers will include a hyperlink that looks like a link to a real website, such as Amazon.com, but if you look closely, the hyperlink may say “Annazon” or a similar misspelling that looks like a familiar website but is not.
Phishing attempts will often include repeated fraudulent login approval requests, “unusual activity” warnings prompting a password change, or reauthentication requests; invoice scams or urgent requests for wire transfers; and messages appearing to be from someone within the company requesting updated banking information from colleagues.
When in doubt, contact your IT expert or call the person the message claims to be from if it’s someone you know.
Malware
Malware (short for malicious software) is “any type of malicious software designed to harm or exploit any programmable device, service or network.” It’s a broad term that encompasses many methods hackers use, such as: viruses, worms, spyware, adware, and ransomware (more on that later!).
Malware can help hackers access confidential information, disrupt business operations, and cause substantial financial losses (avg.com).
How to Prevent a Malware Attack
- Use anti-virus protection and a reliable ad-blocker.
- Keep your device(s) up to date.
- Do not trust items sent from unknown sources.
Ransomware
Ransomware attacks are among the top cyber threats to small businesses, particularly in recent years.
“Ransomware is a type of malicious software designed to block access to a computer system or computer files until a sum of money is paid,” according to Cybereason. “Most ransomware variants encrypt the files on the affected computer, making them inaccessible, and demand a ransom payment to restore access.”
The average cost of a ransomware attack on a business is $133,000; however, the average cost of a cyberattack on a small business is over $250,000, with some incidents costing up to $7 million.
Quick Tips to Stay Safe from Ransomware Attacks:
- Implement a cybersecurity awareness and training program.
- Keep your software and operating system updated to the latest available versions.
- Utilize spam filters, firewalls, and anti-virus programs, setting automatic updates.
- Restrict access to install and run programs.
- Back up data on a separate device, keeping offline, encrypted backups of critical data.
- Do not open suspicious attachments or links.
Learn more about ransomware attacks in our blog: Ransomware Attacks and Steps to Protect Yourself
Cyber Liability Protection
Has your small business considered cyber liability insurance? This coverage is designed to protect businesses from some of the most common security problems encountered with online and computer-related technology.
Learn more in our cyber liability blogs:
What is Cyber Liability Insurance, and Why Does Your Business Need It?
Any Business Can Be a Target of Cyber Criminals. Cyber Liability Insurance Can Help!
When you’re ready to discuss cyber liability coverage for your small business, visit Merchants Insurance Group’s Find An Agent tool to locate an independent insurance agent near you!
For further information on cyber security for your small business, browse the linked resources throughout this blog!
This blog was last updated on April 23, 2026.
