Cyber threats aimed at Australian small to medium businesses (SMBs) are on the rise, with a staggering 43% of hacks targeting small businesses. Despite this, many SMB owners still have the attitude that they are immune due to their size, mistakenly believing that hackers only go after the behemoths of the corporate world.
The reality, however, is quite the opposite; cybercriminals are zeroing in on small businesses, who are seen as easy prey due to weaker security, minimal IT support, and limited resources for robust cybersecurity measures. Lacking the defences that larger companies can afford, SMBs have become an attractive target for malicious actors looking for an easy score.
Without a dedicated internal IT team or the right security tools to monitor and respond to threats, we often see smaller businesses struggling to implement even basic security configurations, such as firewalls, encryption, and regular updates, all of which are critical in reducing vulnerability. This can leave networks unprotected and expose sensitive information, increasing the likelihood of a data breach. Given that 60% of SMBs close their doors within six months of a successful attack, the stakes for small businesses are high.
In this article, we’ll address the most commonly overlooked security configurations, explore how partnering with a Managed Service Provider (MSP) can strengthen your business’s security posture, and provide expert support and ongoing monitoring to defend against growing cyber threats.
Rising Threats: Increasing Cyber Threats Targeting SMBs
It’s no secret that cyberattacks are becoming increasingly sophisticated. Today’s cyber criminals leverage AI-powered tools for enhanced research, targeting, and execution, rolling out attacks with corporate-level precision. Here are the top threats facing SMBs as we move towards 2025:
Phishing and Social Engineering Attacks
Despite growing awareness, phishing remains one of the top concerns for SMBs, with a staggering 91% of all data breaches linked to phishing attacks, where cybercriminals impersonate trusted sources to deceive employees into clicking malicious links or sharing sensitive information.
Less rigorous security protocols and a lack of employee training mean smaller companies are particularly vulnerable to phishing emails.
Ransomware and Malware
Ransomware attacks continue to be one of the most destructive threats for SMBs, with research finding that 71% of ransomware attacks are specifically targeted at small businesses. These attacks typically involve cybercriminals encrypting vital business data, making it inaccessible, and then demanding a ransom to unlock it. For SMBs who fall victim, the average ransomware demand is $116,000, an amount that can cripple operations, especially for businesses without adequate backup. The disruption caused by these attacks often results in operational downtime, reputational damage and financial losses that have the potential to close operations if not appropriately managed.
Insider Threats
Not all cyberattacks come from external sources. Insider threats, whether intentional or accidental, are a growing concern for large enterprises and start-ups alike. These run the gamut from disgruntled employees leaking sensitive information to untrained staff members inadvertently causing a breach by clicking on harmful links. Research shows that 44% of insider threats are caused by negligence, underscoring the importance of employee security training, implementing strict access controls and monitoring internal activities to reduce the likelihood of such incidents.
Common Vulnerabilities in SMB IT Setups
1. Weak Passwords and Poor Authentication Practices
SMBs and their employees still frequently rely on weak or reused personal passwords, leaving them vulnerable to password spraying and phishing attacks. Add a lack of multifactor authentication into the mix, and the chances of a data breach increase exponentially.
Essential Configuration: Implementing MFA can block up to 99% of identity-based attacks. Set up MFA on all accounts and enforce strong, unique passwords, with protocols on timely resets. Consider using a password manager to generate and store passwords securely.
2. Unpatched Software
Many small business owners are time-poor and resource-stretched, particularly as they start to scale. As a result, essential tasks like software updates and patching often fall to the bottom of the to-do list. This creates a significant cyber security risk as unpatched systems are one of the easiest ways for cybercriminals to exploit known vulnerabilities.
In fact, 60% of breaches are linked to vulnerabilities for which patches were available but not yet applied.
Essential Configuration: Consider implementing an automated patch management system to ensure all software, systems, and applications are regularly updated with the latest security patches.
3. Lack of Proper Firewalls and Encryption
Without robust firewalls or encryption, SMBs leave themselves vulnerable to attacks that could lead to data breaches. Many small businesses rely on default firewall settings or outdated systems, which skilled hackers can easily bypass. Encryption, both in transit and at rest, is critical for protecting sensitive data, yet encryption is not implemented in 41% of SMBs, exposing sensitive customer data and business information.
Essential Firewall Configuration: Ensure your firewall is configured correctly and regularly updated. Consider using Next-Generation Firewalls (NGFW) for enhanced protection against more sophisticated threats.
Essential Encryption Configuration: Deploy data encryption for both stored (at rest) and transmitted (in transit) information to safeguard sensitive data from breaches.
4. Insufficient Employee Training
Employees are often the weakest link in a company’s cybersecurity strategy, and small businesses need to pay more attention to regular staff training.
Essential Practice: Conduct regular security awareness training that covers phishing, email security, new threats and safe browsing habits. Simulated phishing attacks can help employees spot and avoid real threats and lower the risk of a successful cyberattack.
5. Poor Microsoft 365 Security Setup
While Microsoft 365 (M365) is a powerful tool for collaboration and productivity, many small businesses are failing to effectively secure their M365 environments, making them vulnerable to cyberattacks. One of the most common mistakes is not correctly configuring conditional access policies, which protect endpoints by controlling how and when users can access M365 services based on factors like device security and location. Without these policies in place, attackers can more easily gain unauthorised access to sensitive data.
Another oversight is neglecting to activate key security features, such as Safe Links and Safe Attachments, which scan emails and attachments in real-time to block malicious content before it reaches users. While these features are crucial for preventing phishing and malware attacks, they are often underutilised by SMBs.
Essential Security Configurations:
- Set up conditional access policies to dynamically adjust access permissions based on user behaviour and device security.
- Implement Data Loss Prevention (DLP) policies to protect sensitive information from unauthorised sharing or leakage.
- Activate Microsoft Defender for Office 365 to scan and block harmful emails, links, and attachments, enhancing overall email security.
Strengthen Your SMB’s Cybersecurity Posture with Helpdesk Computers
Cyber threats are rising, and as an SMB, you need robust security measures to stay protected. From configuring firewalls and encryption to providing employee training, Helpdesk Computers is here to support you. As an approved network partner of the Australian Signals Directorate (ASD), we bring industry-leading standards to your business. Think of us as your outsourced IT team, providing visibility and control over your entire IT environment.
Our team will work with you to configure security systems, manage compliance, and offer ongoing employee training to protect your business from emerging threats.
Schedule a security assessment with Helpdesk Computers today and gain peace of mind knowing your systems are secure. Following the evaluation, you’ll receive a Free Security Report and Action Plan outlining your current security posture and actionable steps to improve your defences and strengthen your cybersecurity strategy.