The majority of cyberattacks happen to small businesses and midsize enterprises (SMEs). With the average cost of a cyberattack nearing a quarter of a million dollars, it’s no surprise that many businesses close within six months of experiencing one. Yet, according to a survey of managed service providers (MSPs) for SMEs, only 30% believe ransomware is a critical threat. This perception may stem from the mistaken belief that ransomware only targets larger corporations, but in reality, smaller businesses are more at risk due to several key factors.
Key Factors That Make SMEs Ransomware Targets
1. Lack of Cybersecurity Training
Every company that connects to the internet and holds data is at risk from cyber threats. Unfortunately, many smaller businesses have not yet invested in proper cybersecurity training for their employees. Well-trained employees can recognize phishing attempts and other social engineering tactics, which are common entry points for ransomware attacks. However, poorly trained employees may unknowingly introduce malware into the system, enabling attackers to launch a ransomware attack.
2. Fewer Cybersecurity Defenses
Many small businesses lack the resources or expertise to implement robust cybersecurity defenses. This makes them more vulnerable to attacks, as they may have significant gaps in their security that criminals can exploit. Without proper defenses, small and midsize enterprises present easy targets for ransomware gangs looking to access their networks.
3. Limited IT Resources
SMEs often have fewer IT resources at their disposal. While they may have an onsite IT team or rely on MSPs for support, these resources may not be as comprehensive as those of larger companies. Smaller businesses may not prioritize cybersecurity or invest in cyber insurance, making them less prepared to respond effectively to attacks. Moreover, without incident response plans in place, these organizations are left scrambling when an attack occurs, increasing the likelihood of significant damage.
4. Perception of Risk
Startups and smaller businesses are often so focused on developing their product or service that they underestimate the importance of cybersecurity. Many assume that cyberattacks only target "digital" companies, but industries like manufacturing, logistics, and healthcare are frequently hit by ransomware. This misconception leaves many SMEs dangerously exposed to cyber threats.
5. Connections to External Suppliers
Cybercriminals often target businesses indirectly by exploiting vulnerabilities in the networks of external partners, suppliers, or service providers. SMEs tend to rely heavily on third-party vendors for services like logistics, waste disposal, or remote monitoring, which creates additional entry points for attackers. Every digital connection is a potential backdoor for ransomware gangs, further increasing the risk for smaller enterprises.
Why Are Small and Midsize Businesses at Greater Risk?
While larger corporations typically have more robust cybersecurity measures in place, smaller businesses often lack the necessary defenses to ward off sophisticated cyberattacks. This combination of limited resources, weak defenses, and a lack of cybersecurity awareness makes SMEs appealing targets for ransomware gangs. As opportunistic criminals search for vulnerable businesses, they often find easier access to small and midsize enterprises.
By understanding the risks and taking proactive steps—like investing in cybersecurity training, strengthening defenses, and implementing incident response plans—small and midsize businesses can significantly reduce their risk of becoming the next ransomware victim.
