10 Cyber Threats Small to Medium-Sized Businesses Can’t Afford to Ignore
Picture this: a normal workday, everyone ticking off tasks to wrap things up before heading home.
Then it happens. One of your computers gets hacked.
Your data’s breached, locked, and held ransom.
Stress levels go off the charts, your IT team hits burnout territory, and you end up wasting valuable time and potentially thousands of dollars trying to regain access to your critical information.
And all of this could have been avoided if you’d prioritised cybersecurity from day one.
No Business is "Fool-Proof" Safe
Here’s the harsh reality—hackers strike every three seconds globally. That’s a staggering 26,000 attacks every single day.
Closer to home, Australia saw 47 million data breaches in 2024. That’s one account being compromised every second. For every 100 Australians, approximately 732 accounts were hacked—far exceeding the global average of 285 per 100 people.
What makes you think your business is invincible? If major companies like Canva, Optus, MediBank, and Latitude Financial weren’t immune to devastating data breaches, your business isn’t either.
Sun Tzu had it right when he said, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.”
The first step to protecting your business? Understand the threats, then craft your battle plan.
Most Small to Medium-Sized Businesses Ignore Cyber Threats—Until It’s Too Late
Every cyber threat has its unique flavour, whether it comes from external hackers or internal mistakes. And if these threats aren’t caught early, they have the potential to wreak serious havoc on your operations.
These are the most common cyber threats SME’s face—and the strategies to stop them.
Ransomware and Double Extortion
The scenario described earlier? That was a ransomware attack.
Ransomware works by “taking hostage” of your files or systems. Hackers then demand a ransom to unlock the data or threaten to sell it publicly.
If you refuse to pay, you might face added harassment—think Denial of Service attacks that knock you offline, endless phishing emails and malicious phone calls. Eventually, after enduring enough pain and downtime, many businesses give in.
Ransom demands typically range from $10,000 to $5 million. Think that’s bad? The largest payment on record hit an eye-watering $75 million.
Even if you pay, the nightmare isn’t over. Recovering from a ransomware attack takes time—sometimes up to 277 days to fully contain the breach. For small-to-medium businesses, it often means weeks or months of disrupted operations. Some face lasting damage to their reputations and customer trust.
Add to this the financial toll. Downtime alone can cost $20,000 to $50,000 per hour. That’s the price of lost revenue, lost productivity, lost wages, customer cancellations, data recovery, and more.
The solution: Regularly back up your files and store them securely off-site. Also, patch and update your systems frequently to close security loopholes hackers love to exploit.
Cybersecurity Awkwardness
Many small to medium sized businesses don’t even have basic cybersecurity controls and policies in place.
Why? They don’t think it won’t happen to them.
They use passwords as simple as “1234” or “password,” click on suspicious links, and fail to update their software.
Break the cycle of complacency. Start by educating your team in five essential cybersecurity rules:
Use strong, unique passwords—and never reuse them!
Always report scams, security concerns and suspicious emails to your IT team.
Provide unique logins, and stop sharing passwords.
Update software immediately when new versions become available.
Want to go further? Good. Cybersecurity isn’t “set and forget.” Regular training and strong security habits will go a long way in keeping your business protected.
Phishing Attacks
Phishing is the OG of cyber scams. It’s been baiting victims since the mid-90s.
Phishing works by sending fake emails that trick recipients into clicking malicious links or handing over sensitive details. Once hackers gain access, they steal funds or confidential data.
Email phishing remains a hot favourite among cybercriminals, with 1.2% of all emails sent daily being classified as malicious. That’s a mind-blowing 3.4 billion phishing emails per day.
Phishing scams often serve as a precursor to ransomware attacks, making this threat more dangerous than it might appear.
Pro tip: If an offer seems too good to be true, it almost always is. Teach your team to scrutinise email links, especially unsolicited ones.
Insider Threats
Cyber risks don’t always come from outside. Sometimes they’re standing right next to you at the water cooler.
Insider threats—whether accidental or deliberate—account for a significant portion of cyber incidents.
There are three main types of insider threats:
Careless insiders: Employees who unintentionally compromise the business through mistakes like weak passwords or accidental clicks on phishing links.
Malicious insiders: Disgruntled workers who actively sabotage systems or steal data—often before, during or after their resignation period.
Compromised insiders: Employees whose credentials are stolen via phishing or malware, granting hackers unauthorised access.
How to handle it: Regularly update user privileges, review employee access to sensitive data, and invest in ongoing cybersecurity training. And remember: “Trust but verify” should always be your mantra.
IoT Security Gaps
Smart Gadgets = Dumb Security?
Hackers have successfully infiltrated businesses using devices as innocent as a connected fish tank thermometer. Yes, you read that right. A casino faced a breach because its lobby aquarium’s internet-connected thermometer was poorly secured.
Ensure that all connected devices—smart thermostats, security cameras, even appliances—are protected with strong passwords, isolated networks, and regular updates.
Cloud Security Risks
Cloud storage is convenient but risky if not managed properly.
Global giants like Facebook, LinkedIn, and Toyota have all fallen victim to cloud-related breaches, exposing millions of user accounts.
How to avoid becoming a cautionary tale: Encrypt data, limit access permissions, and monitor for signs of unauthorised activity.
Compliance and Regulatory Headaches
Ignoring regulatory requirements isn’t just risky—it could cost you big in fines.
Frameworks such as the Australian Cyber Security Centre’s Essential Eight, ISO 27001, and DISP are invaluable in helping businesses safeguard sensitive data while staying compliant.
If compliance feels overwhelming, enlist an expert to guide you.
Limited Budgets
Small and medium sized businesses often skimp on cybersecurity, viewing it as an unnecessary expense. Don’t make this mistake.
Even with limited budgets, you can invest in essential tools like antivirus or antimalware software, monitoring, patch management, firewalls, secure backup systems and more advanced cyber security tools.
Consider hiring a part-time IT professional or outsourcing to a managed service provider. Think of it as insurance for your business—it’s always worth it in the long run.
Business Email Compromise (BEC)
BEC scams trick unsuspecting employees into handing over money or sensitive data via fake but convincing emails.
Keep it simple: Train employees to spot red flags in emails, such as suspicious sender addresses, overly urgent language, or unexpected requests for payment.
By the way, how good are you at spotting the red flags? Look closely and test your skill:
Sample of a Fake Email
Supply Chain Attacks
Your cybersecurity is only as strong as the weakest link in your supply chain.
Partner with vendors and suppliers who follow robust cybersecurity practices to ensure their vulnerabilities don’t become yours.
Don’t Leave Your Business Exposed!
Cybersecurity is more than an IT concern—it’s the backbone of your businesses survival. Here’s the real question: Are you ready?
Put proactive measures into action today. From implementing multi-factor authentication to safeguarding the cloud, each step counts. Protect your systems, train your team, and strengthen your defences NOW before it’s too late.
Take charge of your cybersecurity strategy today and protect what matters most. Want to make your business more secure? Click here to download our e-book for free.
ABOUT THE AUTHOR: JARROD RAMSAY
Jarrod’s entrepreneurial journey began at 19, reselling telco services for brands like Telstra, Vodafone and Vocus. Realising he wanted more, he sold his business and dove into Managed IT Services, launched a telco division and built a public cloud platform.
These bold moves weren't just about competition; they're about creating better solutions for his clients.
Today, Jarrod thrives on collaborating with business owners, sharing ideas, and tackling challenges with creative strategies. Whether you're an entrepreneur, a business owner, or an employee responsible for the ICT services at your business, feel free to reach out—he'd love to connect.