When people think about cyber attacks, they often picture big companies making headlines after a huge data breach. But the truth is, these attacks are quietly happening much closer to home—and small businesses are often the main targets. Hackers see small companies as easier to break into because they usually have fewer resources, less IT support, and limited cybersecurity training.
Experts like Cory Eickholt, director of loss control at Central Insurance, say that many small business owners believe cyber criminals won’t come after them. That assumption leaves them open to attacks. “It’s not about how big the business is,” Eickholt explains. “It’s about how easy it is for someone to get inside.”
The rise of remote work, cloud tools, and online payments has made it easier to run a business but also opened doors for more cyber threats. Jeff Lieberman, director of special investigations at Central, points out that social engineering is a common way hackers get in. These criminals trick employees by pretending to be trusted people, like vendors or executives. They build trust and use believable stories to get employees to share passwords or send money. Lieberman also notes a rise in fake LinkedIn profiles used to gain credibility and exploit trust within networks.
Several types of cyberattacks commonly hit small businesses:
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Phishing: Fake emails that look like they come from trusted companies try to steal info or install malware. For example, a Connecticut furniture shop had over 200 fake PayPal invoices sent to its customers after hackers accessed the owner’s email.
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Social Engineering: Attackers impersonate someone trustworthy to manipulate employees. One costly case involved scammers convincing an employee to wire $17 million by pretending to be the company CEO.
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Ransomware: Hackers lock up data and demand cryptocurrency to unlock it. KNP Logistics, a 158-year-old shipping company, had to close after losing access from a single weak password and having no data backup.
- Data Breaches: Sensitive information gets stolen or exposed. Over 1.1 million records tied to a Texas adoption center were exposed online, including medical and court records, causing severe damage to trust and operations.
To protect against these threats, small business owners can take simple but effective steps. Training employees to recognize suspicious emails and double-check unusual requests is critical. Using strong, unique passwords and updating them regularly can stop hackers from breaking in. Multi-factor authentication (MFA) adds another security layer by requiring a second form of identification, such as an app code.
It’s also smart to have a plan in case an attack happens. This plan should name who’s responsible for what, list immediate actions like disconnecting affected systems, outline communication strategies to keep customers and staff informed, and map out recovery steps. Reviewing the response afterward helps businesses get better prepared for future incidents.
Cyber insurance is another valuable tool. Central Insurance offers a policy called Cyber Suite, designed specifically for small to midsize businesses. It helps cover costs for data recovery, lost income, legal fees, and customer notifications. Plus, it gives access to experts who can act quickly to minimize damage after an attack.
Lieberman recommends using services like DeleteMe, which remove personal info from public websites. The less info hackers can find, the harder it is for them to impersonate employees or vendors.
Bottom line: No business is too small for a cyber attack. But with the right training, tools, plans, and insurance, small companies can better protect themselves and bounce back if something bad happens. Talking to your insurance agent about Cyber Suite coverage is a solid step toward keeping your business safe.