Why Hackers Love Small Businesses — And How to Protect Yours

46% of small businesses have been cyberattacked. Learn why hackers target smaller companies and practical steps to protect your data and reputation.

When people imagine a cyberattack, they often picture headlines about major corporations and government agencies. It’s easy to assume hackers only target the “big guys.” But the truth is, small and mid-sized businesses are some of the most attractive targets for cybercriminals and often the most vulnerable. According to a 2025 survey by Mastercard, 46% of small business owners have experienced a cyberattack on their current business.

The Myth of "Too Small to Hack"

Small businesses may believe they fly under the radar, but statistics tell another story. Nearly half of all cyberattacks are aimed at small organizations. Why? Hackers know smaller companies often lack the budget, tools, or dedicated staff that large enterprises use to defend themselves. That makes breaking in easier, and the payout can still be substantial. Even modest customer databases, financial records, or login credentials are valuable on the dark web.

Ransomware: A Costly Lockdown

Ransomware is one of the most common threats to small businesses. Criminals encrypt a company’s files and demand payment to unlock them. For a small business, losing access to invoices, payroll systems, or customer records can be devastating. Even if a ransom is paid, recovery is slow and costly, not to mention the reputational damage with clients.

Data Breaches: No Database is Too Small

Another top threat is data theft. Whether it’s personal information, credit card numbers, or employee records, any breach can have long-term consequences. Regulatory fines, customer lawsuits, and loss of trust can cripple a small company. Cybercriminals also use stolen data for identity theft, making even a “small” breach extremely damaging. Every business owner that holds data on their employees and the customers is a target for cyber predators.

Vendor Exposures: Weak Links in the Chain

Small businesses are increasingly connected to larger ecosystems through vendors, partners and employees on home devices. Hackers often target smaller companies as a stepping stone to infiltrate bigger networks. A single compromised vendor or employee using a home device to access corporate systems can lead to a domino effect, exposing sensitive client data or causing operational disruptions up and down the supply chain.

What Small Businesses Can Do

The good news is that small businesses can significantly reduce their risk without breaking the bank. Practical steps include:

  • Invest in training: Teach employees how to spot phishing emails and scams.
  • Use strong authentication: Require multi-factor authentication (MFA) for all systems.
  • Patch regularly: Keep software and systems up to date.
  • Control access: Limit data access to only those who need it.
  • Plan ahead: Create an incident response plan and review your cyber insurance options.

Hackers aren’t only going after the Fortune 500. They’re looking for the easiest opportunities — and small businesses often fit that description. By taking proactive steps, small businesses can shift from being an easy target to a much harder one. Cybersecurity doesn’t just protect your systems; it protects your reputation, your clients, and your future.

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Topic(s): Cyber | Cybersecurity