The 5 Most Common Cybersecurity Threats Facing Small Businesses in 2025

October is Cybersecurity Awareness Month, a time to shine a light on the fastest-growing cybersecurity threats and challenges for small and mid-sized businesses (SMBs).

If you think your company is “too small to be targeted,” think again. According to recent industry reports, over 60% of cybersecurity threats now target organizations with fewer than 1000 employees, and nearly half of those companies experience significant downtime or data loss as a result.

Here are the five most common cybersecurity threats small businesses face in 2025 – and practical steps you can take to protect your organization.

1. Phishing and Business Email Compromise (BEC)

Phishing remains the number one way attackers gain access to small businesses—and one of the most persistent cybersecurity threats organizations face today. Modern phishing emails are no longer riddled with typos – they are well-crafted, often using AI-generated content and spoofed domains to impersonate trusted contacts.

With more advanced forms of phishing like Business Email Compromise, the goal is to trick the employee into wiring money or sharing sensitive data by posing as an executive or vendor. If an employee falls for this scheme, it can severely damage the business.

How to defend:

• Train employees regularly to spot suspicious emails and links.
• Implement multi-factor authentication (MFA) on all accounts.
• Verify all financial or wire transfer requests through a second channel, such as a phone call.

2. Ransomware and Data Extortion

Ransomware is no longer just about encrypting files. Threat actors now steal your data before encrypting it, threatening to publish it if you don’t pay.

Small businesses are prime targets because they often lack 24×7 monitoring and robust backups. Average ransom demands for SMBs now exceed $120K, but the true cost is the downtime, reputational damage, and lost customer trust.

How to defend:

• Keep offline, tested backups of critical systems.
• Use Endpoint Detection and Response (EDR) tools to detect early-stage infections.
• Partner with a Managed Security Service Provider like MicroAge to monitor alerts and isolate cybersecurity threats quickly before they spread.

3. Credential Theft and Weak Passwords

Cybercriminals harvest credentials through phishing, dark web breaches, and keylogging malware. Once inside, they move laterally across systems, often undetected for months.

As password fatigue grows, many users reuse credentials across personal and work accounts, giving attackers an easy way in.

How to defend:

• Adopt password managers to enforce unique, strong passwords.
• Implement password-less authentication or MFA whenever possible.
• Regularly audit and revoke unused or stale accounts.

4. Unsecured Cloud and SaaS Applications

The average small business uses over 130 SaaS applications, many added without IT approval (i.e., Shadow IT). Each application can create a new entry point for attackers if it’s not properly configured or monitored.

How to defend:

• Use discovery tools to complete an inventory of all SaaS apps in use.
• Enforce least-privilege access and automatic offboarding when employees leave.
• Ensure data shared with third-party apps is encrypted and backed up.

5. Insider Threats and Human Error

Not all cybersecurity incidents start with hackers. Accidental data exposure, misconfigurations, and disgruntled employees can all lead to costly breaches.

Human error remains the leading cause of data loss, often from something as simple as sending a file to the wrong person or failing to apply a patch.

How to defend:

• Provide ongoing user awareness and phishing simulation training.
• Apply role-based access control to limit exposure of sensitive information.
• Establish clear policies for onboarding and offboarding employees.

Understanding and mitigating these cybersecurity threats is critical to long-term resilience. Technology alone can’t stop every attack. It requires building a culture of security awareness across your organization to create the best long-term defense. Encourage your employees to think before they click, report suspicious activity, and take responsibility for protecting customer and company data. Cybersecurity is a shared responsibility, and October is the perfect time to start making it part of your business DNA.

The cybersecurity threats facing small businesses are growing more complex every year—but you don’t have to face them alone. From strategy to execution, the MicroAge Cybersecurity team helps you identify vulnerabilities, strengthen defenses, and align with proven frameworks that protect your business.

Let’s talk

Connect with us today to build a stronger, smarter security posture. Contact us today at (800) 544-8877, and we would be glad to help.