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Small and medium-sized businesses (SMBs) may recognize cyberattacks as a threat without being ready for the specific ways an attack could interrupt operations. Verizon’s 2025 U.S. survey found that most respondents considered several attack types risky, but awareness is not proof that protections are in place, assigned to an owner, tested, or recoverable.
Are small businesses really targets for cyberattacks?
Yes. Verizon’s 2025 Data Breach Investigations Report (DBIR) says SMBs were targeted nearly four times more than large organizations in that edition. Verizon’s report covers incidents from November 1, 2023, through October 31, 2024, and draws on global breach data. The finding does not mean every small business faces the same likelihood of attack: industry, exposed systems, data, and existing controls all matter.
That global breach dataset is different from a U.S. survey of business decision-makers. One describes patterns in reported incidents; the other records what respondents say they believe or have done. Neither is a direct audit of every SMB’s security.
What are the biggest cyber risks for small businesses?
The threat is not one product or attack method. Verizon’s findings point to risks involving extortion and ransomware, stolen credentials, social engineering, and business email compromise—alongside the vulnerabilities that make systems and sensitive data easier to reach.
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Extortion and ransomware
Verizon’s 2024 SMB DBIR infographic reports that 32% of SMB breaches in 2023 involved extortion, including ransomware. It also reports a $46,000 median loss for financially motivated ransomware or extortion incidents, citing FBI Internet Crime Complaint Center data for that loss figure. These are historical report findings, not a forecast of what a particular business will lose.
Stolen credentials and social attacks
A separate Verizon infographic reports that, in its stated 2024 period, 33% of SMB breaches involved stolen credentials and 18% involved social attacks. It also reports median attacker dwell time of 24 days. These are vendor-reported figures; they should not be read as rates for all SMBs or as a guarantee that an incident will be detected within that time.
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Pretexting and business email compromise
In Verizon’s 2024 infographic, about one quarter of financially motivated incidents over the preceding two years involved pretexting, and most of those resulted in business email compromise. A believable request to change payment details or share credentials can exploit ordinary business processes, not just technical weaknesses.
Phishing that gets acted on
Verizon’s 2024 infographic reports a median time of under 60 seconds for users to fall for phishing emails. That is a reported median, not a prediction about any particular employee. It illustrates why knowing that phishing exists is not a substitute for straightforward verification and reporting procedures.
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Why can leaders mistake awareness for preparedness?
In Verizon’s 2025 U.S. State of Small Business Survey, 52% of surveyed SMBs acknowledged that business growth likely increases the threat of cyberattacks. Forty-seven percent said they had invested in cybersecurity technology in the prior year, and one quarter said they did not believe they were investing enough. These are self-reported attitudes and investment claims, not independently verified security audits.
The same survey found that majorities viewed each listed category—viruses, malware or ransomware, password theft, sensitive-data vulnerabilities, endpoint vulnerabilities, and spam or phishing—as some level of risk. However, the share calling each a major risk had declined compared with August 2024. So the evidence does not show that respondents simply dismissed cyber threats. It leaves a more practical question unanswered: do their day-to-day controls cover the business’s critical accounts, devices, data, and suppliers, and can the company recover if those controls fail?
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“We’re too small to be targeted”
Verizon’s 2025 global DBIR finding challenges the assumption that small size alone makes a business uninteresting to attackers. It does not establish equal risk across businesses. A small firm’s exposure still depends on what it operates, what information it holds, and how it is protected.
“We know phishing is a risk, so we’re covered”
Recognition does not show that employees know how to verify a payment change, report a suspicious message, or get help quickly. The phishing timing figure above is a reason to make those actions easy to practice, not to blame individual staff.
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“Antivirus is enough”
A single security product cannot stand in for identity protection, timely updates, staff procedures, data safeguards, testing, and a response plan. Verizon’s 2025 DBIR recommendations span these operational layers rather than presenting one purchase as a complete defense.
“Growth only helps us”
Growth can add accounts, devices, cloud services, data, and suppliers that need protection. The survey finding that 52% of respondents connected growth with increased threat is about their perception; it does not prove that growth causes more incidents. It does make expansion a sensible trigger for reviewing security ownership and coverage.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How can a small business protect itself from cyberattacks?
Verizon recommends multifactor authentication (MFA), prompt software updates, employee training, encryption, regular testing of defenses, and an incident response plan. Leaders can turn those recommendations into work that has a named owner and a clear completion check:
- Map what the business depends on. Inventory business-critical accounts, devices, data, cloud services, and suppliers. Record who owns each item and who can restore access or service.
- Protect high-impact accounts with MFA. Prioritize email, remote access, financial systems, and administrator accounts. A FIDO2-compatible hardware security key may be an option when a service supports it; verify compatibility and establish recovery procedures before relying on it.
- Set an update routine. Assign responsibility for operating-system, application, and device updates, including internet-facing systems. Include critical vendors and cloud services in the review rather than assuming their security covers every business configuration.
- Make unusual requests verifiable. Train staff to confirm unexpected payment changes and credential requests through a second channel. Provide a simple, blame-free way to report suspicious messages.
- Limit and protect sensitive data. Give people access only to the information they need, and use encryption appropriate to the data and systems involved.
- Test recovery and response. Test backups, then rehearse a short incident plan: who makes decisions, who contacts the insurer or service provider, how operations continue, and how customers or regulators are notified when required. Notification duties depend on jurisdiction and data type; this article does not set legal deadlines.
- Review after change. Recheck owners and coverage when the business grows, adds applications, acquires another company, or changes suppliers.
For firms without in-house security expertise, outside help may be useful, but the decision should be tied to specific gaps. Ask a provider or assessor what systems and suppliers it will cover, what work it will perform, who remains accountable inside the business, how incidents and recovery are handled, and what ongoing costs apply. Do not treat a provider’s presence as proof that every risk is managed.
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