With cybercriminals shifting their sights to smaller targets, small businesses are facing exponential risks of attacks. From data breaches to ransomware incidents, the digital landscape has grown increasingly hostile, and the cost of being unprepared can cripple a business. Cybersecurity statistics for small businesses show that threats are on the rise, making it clear that stronger protection is needed.
This blog post dives into 52 essential statistics about cyber attacks on small businesses in 2025. These numbers will paint a clear picture of the growing threats, the vulnerabilities these organizations face, and the urgent need to invest in robust cybersecurity measures.
Why Small Businesses Are Prime Targets for Cyberattacks
Small businesses might think they’re “too small” to interest hackers, but that misconception is exactly why they’re at risk. Cybercriminals often view small businesses as low-hanging fruit due to limited security infrastructure and resources. Here’s why small businesses are on their radar:
- Limited IT Budgets: Many small businesses lack the resources to invest in advanced cybersecurity tools or hire full-time IT teams.
- Underprepared Staff: Employees are often untrained in identifying phishing scams or understanding basic cybersecurity protocols.
- High Success Rates for Attacks: Given the weaker defenses, attacks on smaller organizations are more likely to succeed.
According to recent data, 43% of all cyberattacks target small businesses. That’s nearly half! This is part of broader cybersecurity statistics for small businesses, highlighting the pressing need for stronger defense measures.
The Rising Threats to Small Businesses in 2025
Small Businesses Are Prime Targets
- 43% of cyber attacks target small businesses. Hackers are increasingly turning their attention to smaller companies as they often lack comprehensive cybersecurity defenses.
- 60% of small businesses that experience a cyber attack go out of business within 6 months. The lack of resources to recover is a significant issue.
- Small businesses face cyber attacks every 11 seconds. The frequency of attacks continues to rise, leaving businesses with limited time to respond.
- 80% of small businesses still do not have a formal cybersecurity policy. This oversight leaves significant vulnerabilities open to attackers.
- 75% of small businesses experienced at least one cyber attack in the past year. The increasing digitalization of operations has expanded attack surfaces.
- 30% of small business data breaches occur due to stolen credentials. Weak password management is a key vulnerability.
- 45% of small businesses lack endpoint protection on company devices. Unsecured devices make them easy targets for malware.
- Only 20% of small businesses perform regular vulnerability assessments. Many companies don’t proactively identify security gaps.
Cost of Cybersecurity Breaches
- The average cost of a small business data breach in 2025 is $120,000. This figure includes lost revenue, legal fees, and recovery efforts.
- Ransomware costs small businesses an average of $35,000 per incident. Many business owners feel forced to pay up to regain access to their own systems.
- Recovering from a phishing scam costs small businesses approximately $70,000. This includes lost productivity and customer mistrust.
- The global cost of cybercrime is projected to reach $10.5 trillion annually by 2025, with small businesses making up a significant portion of victims.
- 29% of small businesses that suffer a data breach lose customers permanently due to trust issues.
- Cyber insurance premiums for small businesses have increased by 40% in the past two years due to rising attack risks.
- 70% of small businesses say recovering from a cyber attack is harder than dealing with a natural disaster.
Types of Cyber Attacks Threatening Small Businesses
- Cybercriminals send out 3.4 billion phishing emails globally every day. A staggering proportion of these target small businesses.
- Ransomware attacks increased by 20% in 2025 alone. Small businesses are often seen as more “willing” to pay ransoms to avoid extensive downtime.
- Distributed Denial of Service (DDoS) attacks affect 20% of small businesses annually. These attacks are designed to cripple websites and online services.
- 92% of malware infections occur via email. Employees unknowingly clicking on malicious links remain a key risk.
- 33% of business email compromise (BEC) attacks target small businesses, costing an average of $50,000 per attack.
- 40% of small businesses have suffered a credential stuffing attack. Hackers exploit reused passwords to gain unauthorized access.
- 25% of small businesses reported deepfake-based fraud attempts. AI-generated voices and videos are being used for scams.
Lack of Awareness and Preparedness
- 50% of small business owners believe they are not a target for cybercriminals. This false sense of security puts them at greater risk.
- Less than 25% of small businesses conduct regular cybersecurity training for their employees. Human error remains the leading cause of breaches.
- 58% of employees at small businesses are unable to spot a phishing email. This highlights the importance of education and awareness.
- 63% of small business employees reuse passwords across multiple platforms. This significantly increases exposure to credential theft.
- 47% of small businesses do not have an incident response plan in place. Lack of preparedness leads to higher recovery costs.
- 35% of small businesses don’t back up their data regularly, leaving them vulnerable to ransomware.
- Only 18% of small businesses have cybersecurity insurance, despite the growing threats they face.
Budget Constraints
- 37% of small businesses report budget as their biggest obstacle to implementing cybersecurity measures. Tight finances often force prioritization of other business needs.
- On average, small businesses spend less than 5% of their annual IT budget on cybersecurity. This figure pales in comparison to the risks they face.
- Small businesses that invest at least 10% of their IT budget in cybersecurity experience 60% fewer security incidents.
- 55% of small business owners believe cybersecurity is too expensive, despite the high cost of potential breaches.
- 67% of small businesses that experienced a cyber attack reported financial difficulties within six months.
- Small businesses spend an average of $2,000 per year on cybersecurity software, which is often insufficient against sophisticated attacks.
Third-Party Vulnerabilities
- Supply chain attacks account for 15% of small business breaches in 2025. A compromised vendor can expose a small business to major risks.
- 85% of small businesses outsource IT services, but only 40% vet their providers’ cybersecurity services practices. Blind trust in third-party vendors can lead to vulnerabilities.
- 60% of cyber breaches originate from a third-party vendor. Poor supply chain security is a growing concern.
- 42% of small businesses store sensitive customer data on cloud platforms without encryption. Misconfigured cloud settings lead to data exposure.
- 53% of small businesses do not require their vendors to follow cybersecurity standards, increasing their risk of compromise.
- Only 30% of small businesses conduct regular audits of third-party security practices, leaving potential backdoors open for attackers.
Implementing Strong Cybersecurity Measures
- Investing in multi-factor authentication (MFA) reduces phishing attacks by 90%. This simple step adds an extra layer of protection for digital systems.
- 62% of small businesses with a dedicated IT team reported fewer cyber incidents. Having professionals monitor systems significantly reduces risks.
- Installing firewall and anti-virus software lowers the chances of malware infections by 85%. Basic measures remain effective at combating common threats.
Training and Awareness
- Businesses that conduct monthly cybersecurity training see a 70% decrease in employee errors. Regular refreshers make a huge difference.
- 41% of SMBs use simulated phishing tests to train employees. These tests help identify areas to improve and create an alert workforce.
- Partnering with managed security service providers (MSSPs) cuts small business cyber risks by 50%. MSSPs offer scalable protection tailored to small companies.
Notable Cybersecurity Trends in 2025
Cybersecurity statistics for small businesses:-
- The RaaS market is estimated to be worth $2.5 billion in 2025. Cybercriminals are turning ransomware into a subscription model to reach more victims, including small businesses.
- 69% of cybersecurity professionals report that AI-enhanced attacks are their top concern. These advanced attacks are harder to detect and combat.
- 75% of small businesses with a hybrid workforce experienced a cyber incident. Remote work has introduced new vulnerabilities to the workplace.
- Ransomware-as-a-Service (RaaS) has grown by 60% in 2025, making it easier for amateur hackers to launch attacks.
- 81% of cybercriminals are now leveraging AI-powered tools to improve attack success rates, making traditional security measures less effective.
Cybersecurity statistics for small businesses show the growing risks. By staying aware and taking action, businesses can reduce threats and protect themselves from cybercrime.
How Small Businesses Can Protect Themselves
Now that we have informed you about the risks and cybersecurity statistics for small businesses, it’s time to discuss steps your SMB can take to keep cyber threats at bay. These include:
1. Build Awareness
Your employees are your first line of defense, and training them is key. Establish a regular training schedule to:
- Help them identify phishing attempts.
- Show them the dangers of weak passwords.
- Educate them on safe data handling practices.
2. Set Up a Long-Term Backup System
Back up your data off-site or in the cloud regularly to protect against ransomware and hardware failure. Automating backups ensures up-to-date data regardless of circumstance.
Read more about cloud security services to keep your data safe.
3. Deep Vulnerability Assessments (Deep VA)
Deep vulnerability assessments are critical for identifying weak spots in your business’s IT systems. Hiring third-party cybersecurity experts like QualySec to test your infrastructure can help:
- Identify gaps in firewalls.
- Test your network for known vulnerabilities.
- Provide prioritized recommendations for fixes.
4. Conduct Regular Penetration Testing
Penetration testing simulates real-world attacks on your systems to evaluate their security posture. It assists in finding:
- Vulnerabilities in your software or hardware.
- Unprotected endpoints are often targeted by hackers.
Companies like QualySec offer penetration testing services for small businesses and SMEs at affordable prices.
Latest Penetration Testing Report
5. Invest in Antivirus and Anti-Malware Software
Install reliable antivirus software on all your machines. Some highly-rated solutions for small businesses include:
- Norton Business
- Kaspersky Small Office Security
- Bitdefender GravityZone
6. Apply Two-Factor Authentication (2FA)
Implementing 2FA for emails, tools, and shared software drastically reduces the likelihood of unauthorized access. Passwords alone are no longer sufficient in the fight against cybercrime.
7. Partner with Cybersecurity Experts
Consider working with cybersecurity consultants or managed service providers (MSPs) who can:
- Provide continuous monitoring services.
- Respond to incidents in real time.
- Offer guidance tailored to your industry.
Talk to our Cybersecurity Expert to discuss your specific needs and how we can help your business.
Create a Safe Digital Environment for Your Small Business
Cyberattacks are a reality of doing business in 2025, but with proper planning, you can significantly reduce your risks. From employee education to penetration testing and advanced software solutions, the right approach to cybersecurity is a combination of technology, strategy, and awareness.
If your small business hasn’t started strengthening its defenses, now is the time. The cybersecurity statistics for small businesses speak for themselves, don’t wait until it’s too late. Explore the right tools, seek expert guidance, and encourage your team to take cybersecurity seriously.
Want to implement fast and effective cybersecurity measures? Talk to QualySec’s cybersecurity experts today!
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