Cybersecurity for Small Businesses: 10 Essential Steps to Protect Your Company in 2025
Why Small Businesses Are Prime Targets in 2025
In 2025, cybercriminals are zeroing in on small and mid-sized businesses (SMBs) as their top targets. Ransomware now accounts for the vast majority of breaches in SMBs—far outpacing its impact on larger organizations. From credential theft to supply chain compromise, attackers are focusing on the weakest link, and for many threat actors, that means smaller businesses with weaker security postures.
SMBs often have sensitive data but lack the security resources of large enterprises. In many instances, they can serve as entry points to bigger targets or act as the final stop for monetizable data.
In 2025, for instance, ransomware is disproportionately impacting small businesses. While ransomware is a part of 39% of breaches overall, ransomware makes up 88% of breaches that hit small businesses in the last year, according to Verizon’s 2025 Data Breach Investigations Report.
The data make one thing clear: Smaller organizations can’t skate by with weaker cybersecurity practices anymore. Here are 10 crucial steps to securing your organization in 2025:
Step 1: Conduct a Cybersecurity Risk Assessment
You can’t protect what you haven’t mapped. Every business, including small businesses, should start with a foundational assessment.
Action items:
- Inventory critical assets (such as laptops, servers, websites, cloud accounts, payment systems)
- Identify key data (such as customer information, financials, proprietary content)
- Review existing security tools, access policies, and controls
SecurityScorecard offers free external security ratings that provide a fast snapshot of an organization’s cyber risk exposure across public-facing systems.
Step 2: Train Employees to Recognize Threats
Most breaches begin with human error, according to Verizon’s breach data. Phishing, poor password hygiene, and unintentional data sharing remain top concerns for compromise.
Security training should:
- Teach staff to identify phishing emails and suspicious links
- Explain password policies and secure login practices
- Encourage prompt reporting of unusual behavior
Simulated phishing tests and refresher training regularly can significantly reduce risk.
Step 3: Enforce Multi-Factor Authentication (MFA)
Multi-factor authentication (MFA) is one of the most effective and affordable defenses available. It prevents unauthorized access even when credentials are stolen.
Apply MFA to:
- Email platforms
- Cloud file storage
- Banking and payment services
- Administrative portals
Use app-based authenticators or hardware keys. Avoid SMS-based MFA when possible, which attackers can exploit by conducting SIM card hacking.
Step 4: Patch Software and Systems Promptly
Hackers frequently scan for unpatched and outdated software to infiltrate organizations. Set a patching cadence.
Best practices:
- Enable automatic updates when supported
- Review endpoints regularly for patch status
- Track software versions for known vulnerabilities
SecurityScorecard identifies unpatched systems exposed to the internet, helping SMBs remediate proactively.
Step 5: Secure Your Website and Cloud Tools
Small and mid-sized businesses often rely on content management systems (CMS), ecommerce platforms, and cloud-based productivity tools. These are frequent attack targets.
Minimum steps:
- Ensure TLS or SSL certificates are valid and auto-renewing
- Use strong credentials and MFA for admin portals
- Keep all plugins, themes, and software updated
- Restrict cloud access to authorized personnel only
Step 6: Back Up Data Securely and Often
Ransomware attacks are survivable if you have clean backups. Follow the 3-2-1 rule:
- Keep 3 copies of data
- Store on 2 types of media
- Ensure 1 copy is offsite or in the cloud
Backups should be encrypted, isolated from production systems, and tested regularly.
Step 7: Segment Networks and Devices
Network segmentation can help to limit the impact of a breach. Recommendations include:
- Separate guest and business Wi-Fi
- Isolate Internet of Things (IoT) devices (such as smart TVs or thermostats)
- Use firewalls to control traffic
- Limit communication between unrelated systems
Step 8: Monitor for Suspicious Activity
Even small businesses can detect and respond early if they’re watching. Monitoring options include:
- Alerts for logins from unknown locations or at unusual hours
- Endpoint protection tools that detect ransomware behaviors
- Services that monitor the web for stolen credentials or domain impersonation
SecurityScorecard collects data from the dark web and can monitor your external footprint, such as domains, IPs, and services, and alert you to high-risk activity.
Step 9: Secure Third-Party Vendors and Partners
Small businesses often outsource IT, payments, marketing, or HR, all of which can introduce shared risk. Vendor security practices should be reviewed before granting access.
Steps to take:
- Require vendors to use MFA and secure file-sharing
- Include cybersecurity clauses in contracts
- Remove access immediately when the engagement ends
SecurityScorecard’s Supply Chain Detection and Response (SCDR) solution can help small and mid-sized businesses identify which vendors introduce risk and monitor them continuously.
Step 10: Build a Cyber Incident Response Plan
Preparation can help reduce panic and accelerate recovery in case of breach. Every SMB should maintain a basic incident response plan. It should include:
- Key internal and external contacts (such as IT, legal, and hosting providers)
- Steps to isolate infected systems
- Guidelines for customer or regulatory notifications
- Legal and insurance contact info
Even a one-page printed plan can make a major difference when seconds count.
Consider Cyber Insurance
Cyber insurance won’t prevent an attack, but it can offset the cost of recovery in some cases. Policies vary, but may cover:
- Expenses related to data breaches
- Forensic investigations
- Ransom payments (where permitted)
- Privacy violations
- Business interruption
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Frequently Asked Questions
Is cybersecurity only necessary for large businesses?
No. Small businesses are frequent targets due to perceived weakness and valuable data. In 2025, for instance, ransomware is disproportionately impacting small businesses, according to Verizon’s 2025 Data Breach Investigations Report.
What happens if I ignore cybersecurity?
You risk data loss, operational disruption, fines, lawsuits, and reputational damage. Prevention can cost far less than recovery.
What does cyber insurance cover?
Cyber insurance won’t prevent an attack, but it can offset the cost of recovery in some cases. Policies vary, but may cover, for instance, expenses related to data breaches, forensic investigations, ransom payments (where permitted), and more.
