Why Small Businesses Are Prime Cybercrime Targets

If you run an smaller or mid-sized company (SMB), you are not enough to be vulnerable to hacking. In actual fact SMBs are becoming increasingly appealing target for hackers. Based on the Verizon 2025 Data Breach Investigations Report (DBIR), SMBs are targeted approximately 4-fold more frequently than large corporations..

This guide explains the reasons why hackers are focused on SMBs as well as the typical ways they are able to gain access, as well as practical steps that you could take in order to improve your security defenses.

Why SMBs Are Attractive to Cybercriminals

Cybercrime Is a Numbers Game

Attackers automatize the process of phishing tools as well as credential stuffing and scanning for unpatched devices – targeting organizations that have less secure defenses. SMBs typically fit this description.

Affordable Entry Points

Exploiting vulnerabilities in devices or software is easy and affordable. In 2024-2025 vulnerabilities exploited on devices with edge capabilities and VPNs represented 20% of all initial access vectors and had the median fix time being 32 days.

Human and Third-Party Factors

• The human component accounts for about 60% of all breaches.

• The involvement of third parties was increased from 15 percent to 30% which means that smaller companies are an effective way to reach bigger goals.

Credentials and BYOD Risks

Unmanaged devices and re-used passwords can create permanent access points. Info-stealer malware suggests the fact that 46percent of all compromised systems were associated with corporate accounts that reside that were not managed.

Ransomware Impact

Ransomware is present within 40% of the breaches and is disproportionately impacting SMBs. 88 percent of SMB incidents contain ransomware with the median ransom amount being around $150k.

Common Ways Cybercriminals Gain Access

1. Weak or Stolen Passwords

   • 88% of the web app attacks involved theft of credentials.

   • MFA bypass techniques like prompt bombing pose additional risks.

2. Phishing and Business Email Compromise (BEC)

   • BEC is one of the major sources of cybercrime loss and the FBI reporting $16 billion in 2024..

3. Unpatched Edge and VPN Devices

   • Exploitation of devices that are perimeter and vulnerable to zero day attacks is an important attack source.

4. Third-Party and Vendor Access

   • Making a deal with a small company is usually the quickest way to join the larger network.

5. AI-Enhanced Social Engineering

   • Fake emails and texts are getting more convincing, nearly doubling in the past two years.

The Cost of Cyber Incidents for SMBs

Even minor lapses could be costly.

• IBM: Global average data breach cost $4.44M; U.S. average $10.22M.

• Small- and mid-sized businesses without security automation suffer the average cost of a breach that range from $5.52M, compared to $3.62M that have automation.

• FBI Cybercrime loss exceeds $16 billion by 2024 increasing by 33% year-over-year.

Why SMBs Are Specifically Targeted

• High Security Staffing process, tools, and processes.

• Supply Chain Benefit A breach of a small business can expose more customer networks.

• Credential Reuse and BYOD devices that are not controlled frequent passwords allow for an easy way to gain access.

• patch gaps The Edge as well as VPN vulnerabilities are exposed for long enough to be exploited.

• Ransomware vulnerability SMBs can be vulnerable to fast disruptions and are at risk of an increased risk of ransomware.

80/20 SMB Security Program: Quick Wins

By following CISA guidelines as well as CIS Controls version 8 (IG1) fundamentals, SMBs are able to implement effective quick-acting defenses.

1. Multi-Factor Authentication (MFA) Everywhere

• Inforce MFA to access VPN emails administration panels, payroll and cloud-based applications.

• Use methods that are phishing-proof, such as Passkeys FIDO2/FIDO2 and numbers-matching.

• Ratio-limit MFA prompts to reduce fatigue.

2. Patch External-Facing Devices Quickly

• Examine external assets and patch or reduce the impact within seven days.

• Keep up-to-date with vendor advisory notices.

3. Reliable Backups

• Apply The three-2-1 principle Follow the 3-2-1 rule: 3 copies two media, one offline and immutable.

• Test restores are conducted every quarter and identify the backup credentials.

4. Identity Protection and Email Security

• Implement modern email security; block lookalike domains.

• Make use of password managers and offer monthly phishing/BEC training.

5. Device Security (Including BYOD)

• Set up MDM and full-disk encryption as well as Endpoint detection and Response (EDR) on all devices in the corporate network.

6. Secrets and Least Privilege

• Take away the rights of the standing admin, change credentials and apply SSO and examine repository for leaks.

7. Vendor Risk Management

• You must have MFA and patch compliance. SLAs and reporting on incidents from all vendor.

• Limit the scope of tokens and look into OAuth connections.

8. Incident Response Plan

• Keep a single-page IR card that contains contacts Isolation steps, as well as the necessary reporting steps.

• Perform regular tabletop drills.

9. Security Automation

• Basic automation dramatically lowers the cost of breach ($3.62M instead of $5.52M).

• Verify that GenAI usage is monitored and access controlled.

30/60/90-Day SMB Cybersecurity Plan

Next 30 Days:

• Implement MFA on VPN, email and cloud admin accounts.

• Inventory External Assets

• Test backup restoration of the backup

• Create a plan to secure devices and then publish an IR plan

For 60 Days:

• Replace or patch edge-related risks devices

• Manage your account and passwords by rolling out a rollout

• Conduct phishing-related training using role-based models

• Access to vendor accounts is restricted and enforce SSO on HR/Finance applications

And 90 Days:

• Install EDR

• Use the least privilege access controls

• Examine repos and secrets for leaks

• Do tabletop exercises with ransomware

• Review the cyber-insurance requirements

Trusted References

• CISA Cyber guidelines for small and medium-sized businesses Step-by-step preventive and response checklist

• Verizon DBIR 2025: Latest SMB attack data

• FBI IC3 Reporting incidents and recovery of funds

Key Takeaway

Attackers seek easy wins in large numbers and SMBs are usually the most straightforward to target. By addressing obvious vulnerabilities–MFA, patching, backups, device security, and vendor access–and following guidance from CISA, you can make your SMB significantly less attractive to cybercriminals.