5 Common Reasons Hackers Might Target Small Businesses

Why Might Hackers Target Small Businesses?

For small businesses, cybercrimes, like funds transfer fraud and ransomware attacks, are increasing, possibly influenced by the shift to remote working. But what makes these organizations attractive to cybercriminals? In this article, we tell you about five common reasons.

5 Common Reasons Hackers Might Target Small Businesses

1. Small Businesses Are Often Viewed as Easier Targets

While the news headlines seem to focus on major security breaches at large companies, small and medium-sized businesses are also common victims of cyber attacks. In fact, 43% of cyberattacks are aimed at small business according to Verizon.  Even though the financial gains may be less, cybercriminals may view smaller organizations as appealing targets because of the perception that their IT security systems may be less developed and employees may not receive regular cybersecurity training.

Learn more about how employees can help reduce cyber risks.

2. Small Businesses May Be More Vulnerable to Social Engineering

Social engineering refers to the use of deception or manipulation to trick individuals into taking actions that compromise security, such as revealing sensitive or confidential information, wiring money or granting access. Small businesses tend to be more exposed to this risk for a number of reasons, including: they may lack fundamental security safeguards, like two-factor authentication; they may not fully understand the risks and may not adequately train employees; they commonly work with various third-party partners, which is the root cause of 41% of fintech company data breaches; and may frequently make and receive payments using wire transfers.

3. Small Businesses Often Feel Pressured to Pay Ransoms

Faced with choosing between paying a ransomware demand that may get them back online faster or enduring a long period of potentially business-crippling downtime, small businesses often feel that they have no choice but to pay these demands in the event of a ransomware attack. Without anyone to turn to for help, this is particularly true of those without access to the cyber incident specialists that cyber insurance can provide.

Faced with choosing between paying a ransomware demand that may get them back online faster or enduring a long period of potentially business-crippling downtime, small businesses may often feel that they have no choice but to pay these demands in the event of a ransomware attack.

4. Small Businesses May Be Seen as a Gateway to Larger Organizations

Many small businesses are connected electronically to the IT systems of a range of larger, partner organizations. So, when cybercriminals are looking to infiltrate these larger and more cyber secure organizations, they may target their downstream suppliers to see if these small businesses offer a less-secure way in. What's more, many of these IT relationships are visible through publicly available data.

5. Small Businesses Are Sometimes Collateral Damage

From the WannaCry attack back in 2017 to the Blackbaud attack where over 125 organizations in the UK reported that they had a potential data breach, small businesses are often collateral damage in large-scale cyber attacks that have nothing to do with them. Small businesses might not realize that if a cyber attack is launched against one of their technology providers, they may be responsible for resulting business interruption costs, privacy notifications to customers, or reputational harm.

How to Help Protect Small Businesses from Hackers

Acrisure can help provide small businesses with access to cyber insurance solutions and cybersecurity solutions to help keep them on track and help protect it from hackers. From small business insurance solutions to risk management business solutions for businesses of all sizes, Acrisure can help.

Please contact our cybersecurity team at Acrisure Cyber Services to discuss your business's specific needs and concerns so we can assess and address your cyber preparedness. Or if you are seeking the right small business insurance solution for your business, including solutions for cyber insurance, request a small business insurance quote today.