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World desk5 min

Small Businesses Face Cyber Risk—Start With These Practical Safeguards

Small businesses can reduce common cyber risks with unique passwords, MFA, prompt updates, staff training, protected tested backups, and a clear response plan.
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Small businesses are targets too, but protecting yours does not require a large-company security team. Start by securing business accounts, updating devices, training staff to verify suspicious requests, and keeping backups you have tested. Treat these as ongoing risk-management tasks, not a one-time software purchase.

Why a small business should take cyber risk seriously

Cybercriminals target companies of all sizes, according to the Federal Trade Commission’s small-business cybersecurity guide. A small firm may rely on a handful of email accounts, cloud services, payment systems, and devices; a disruption to any of them can interfere with daily operations.

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Some often-repeated figures need context. CISA reported that small businesses were three times more likely to be targeted than larger companies in a 2023 article describing 2021 context, and put small-business cybercrime costs at $2.4 billion in 2021. These are historical figures, not current attack rates or forecasts. The official sources cited here do not establish a current small-business attack-rate statistic for 2026.

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Build a manageable security baseline

NIST says, “Cybersecurity is a continuous process.” Threats, technology, and business requirements change, so review safeguards as the business changes rather than treating security as a one-off installation. The following baseline reduces common risks, but cannot guarantee that a business will avoid compromise.

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  • Use unique passwords and multifactor authentication (MFA). Prioritize phishing-resistant MFA when your accounts support it, and consider a password manager to help staff avoid password reuse.
  • Keep software and devices current. Install updates promptly, maintain antivirus protection, and replace default passwords on routers and other devices.
  • Protect important data. Back it up regularly, keep copies attackers cannot reach from the network, and test that you can restore them.
  • Train employees. Make sure staff know how to recognize suspicious messages and verify sensitive requests before acting.
  • Know your dependencies. Track business devices, software, cloud services, email, point-of-sale systems, stored data, suppliers, and remote-access connections. Remove access people no longer need.

NIST’s small-business cybersecurity basics offers guidance on MFA, backups, default passwords, antivirus, updates, and training. The FTC also describes the voluntary NIST Cybersecurity Framework 2.0 as an organizing option. Its six functions—Govern, Identify, Protect, Detect, Respond, and Recover—can help a business group its work without requiring a particular product.

Secure business logins with MFA

MFA requires more than a password to sign in. Options include authenticator-app codes, one-time codes, hardware tokens, and smartcards; these methods do not all offer the same resistance to phishing. NIST advises preferring phishing-resistant MFA where available, and CISA says businesses should aim to use it.

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A FIDO2 security key, also called a hardware security key, is one physical MFA option. Before choosing one, check that each important account supports the key and its protocol, that the connector works with the devices staff use, and that the business has a secure recovery process if a key is lost. A key is useful only for supported accounts and is not a complete security solution. See CISA’s MFA guidance for small and medium businesses.

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Reduce phishing and payment fraud

Attackers may use convincing emails or messages to steal credentials, prompt a payment, or obtain sensitive information. They may also exploit software vulnerabilities, malicious websites or ads, exposed remote access, or business-email impersonation. A message that appears to come from a supplier, executive, or colleague is not proof of who sent it.

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  • Pause when a request creates urgency or asks for credentials, sensitive data, a payment, or a change to payment details.
  • Verify consequential requests through a known contact method, such as a number already on file—not by replying to the message or using a number it provides.
  • Require an independent confirmation for wire transfers and other high-impact changes.
  • Where the business uses its own email domain, configure SPF, DKIM, and DMARC as appropriate. The FTC says email authentication helps receiving systems verify messages and makes impersonation harder.
  • Review remote access and supplier connections, and limit access to what each person or service needs.

Make backups useful against ransomware

Ransomware can disrupt access to files and systems. A backup is valuable only if it remains available after an attack and can be restored in practice. Keep regular copies of important files and systems, including at least one copy that is disconnected from the network or otherwise protected from compromise. External drives and cloud backups are possible approaches; assess which systems and files they cover, how quickly restoration would work, who can access them, and how often copies are made.

Test restoration instead of assuming a backup is usable. Include recovery tasks in a short incident plan: identify who makes decisions, who contacts IT or incident-response help, how the business will continue operating, and how customer notifications will be handled.

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Respond carefully if a cyberattack occurs

If ransomware affects a machine, the FTC advises disconnecting it from the network without powering it down. Investigate with experienced help, report the incident to authorities, and notify affected customers when appropriate. A ransom payment does not guarantee that data or systems will be recovered.

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Before an incident, decide who can activate the plan and how staff should report a suspected attack. A small business with limited internal expertise may need qualified IT or incident-response assistance. The official guidance supports seeking skilled help but does not endorse a particular provider.

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Evaluate insurance and outside help against your needs

Cyber insurance is a business-specific option, not a substitute for safeguards or a guarantee that a claim will be paid. Compare policy wording against your legal, contractual, and operational needs. In particular, review:

  • Which first-party losses and third-party claims are covered
  • Exclusions, limits, and deductibles
  • Required security controls and incident-response or notification obligations
  • Whether response services are included and what conditions apply

Do not assume a policy covers a particular incident without checking its terms. The FTC’s small-business guide also addresses supplier risk, incident planning, and insurance considerations.

Use a framework to keep improving

The NIST Cybersecurity Framework 2.0 is a voluntary, flexible way to organize cybersecurity work. A small business can use its six functions to ask practical questions: Who governs security decisions? What devices, data, and dependencies need attention? Which protections are in place? How will the business detect a problem? Who responds? How will operations and data be recovered? Start with the most important accounts and systems, assign responsibility, and revisit the plan as the business or its technology changes.

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