Small businesses are facing rising cyber threats, and they are as much a target for hackers as large corporations. Many small companies lack strong defenses, making them easier and sometimes more rewarding marks for cybercriminals. Tim Guyotte, a senior loss control manager at Central Insurance, points out that hackers don’t just go after big firms—they target any business, big or small.
Owners of small businesses often think they are too insignificant to be noticed by cybercriminals. This false sense of security can lead to risky situations that might cause major financial and operational damage. Real-life cases show just how harmful cyberattacks can be. For example, a manufacturing company with only 20 employees had to pay a ransom after ransomware locked their important files. In another case, an electronics distributor lost tens of thousands of dollars when hackers impersonated their CEO and tricked an employee into wiring money.
These attacks reveal that any business using email, managing customer data, or storing important information online can be at risk. Common weak spots include phishing scams, email fraud, and poor password habits. Many small business owners don’t realize the value of the data they keep, such as payroll details or client information, which cybercriminals can exploit or sell.
Aside from these, other risks often go unnoticed. These include unencrypted credit card information in customer systems, outdated software with security flaws, access granted to third-party vendors, unsecured Wi-Fi networks, and remote work devices without proper security measures.
Despite the scary outlook, small businesses can protect themselves with simple and affordable steps. Using strong and unique passwords that are changed regularly, turning on multi-factor authentication, keeping software updated, and training employees about cyber threats are all effective measures. Choosing trusted cloud service providers and keeping encrypted backups of data also help in reducing risks.
Guyotte suggests treating cybersecurity training like safety training—making it regular, realistic, and mandatory. Small actions like these can prevent attacks like ransomware or costly scams. In fact, after their attack, the manufacturing company strengthened employee training, and the electronics distributor changed its policy to require two approvals for financial transfers instead of relying on email requests.
Although prevention is essential, cyber insurance plays a critical role in helping small businesses recover. The average loss from a cyberattack exceeds $3 million for these companies. Cyber liability insurance can cover expenses from breach responses, legal fees, lost income, and notifying customers, giving businesses a much-needed safety net.
Central Insurance offers tailored coverage and support for small to mid-sized businesses. They provide help in spotting weaknesses before they turn into problems, resources for training and claims, and expert guidance on handling cyber incidents. Working with a partner like Central helps small businesses plan better, respond faster, and bounce back stronger from cyberattacks.
For those running small businesses, it’s clear that underestimating cyber risks can have costly consequences. Taking straightforward steps and having proper insurance can make a big difference in staying safe and resilient. Reaching out to a local Central Insurance agent is a good way to start protecting your business against today’s threats.