Cybersecurity isn’t just an enterprise problem anymore. In 2025, small and medium-sized businesses (SMBs) are just as likely—if not more likely—to be targeted by cybercriminals. Why? Because many SMBs still believe they’re too small to be worth hacking, and attackers know this means they’re often underprepared.

IBM’s 2024 Cost of a Data Breach Report found that the average cost of a data breach for businesses with fewer than 500 employees is over $2.9 million. For many SMBs, that’s a death sentence. Cybercriminals aren’t just after big corporations; they’re targeting whoever is easiest to breach.

So what are the top cybersecurity threats facing SMBs in 2025, and more importantly, how can you protect your business?

1. AI-Powered Cyber Attacks Are Becoming the Norm

Artificial intelligence (AI) has made cybercriminals faster, smarter, and more convincing. Phishing attacks, which used to be riddled with typos and generic language, are now indistinguishable from real business emails. AI is also being used to create deepfake videos and voice recordings, making social engineering scams even harder to detect.

In 2023, an AI-generated deepfake of a company CEO was used to scam an employee into transferring $25 million to an offshore account. That kind of attack, once rare, is now scalable and automated. SMBs, with their often informal internal communication structures, are particularly vulnerable.

What you can do:

• Train employees on deepfake and AI phishing threats. Use free phishing simulators like KnowBe4 to test employee awareness.
• Use AI-powered email security tools like Microsoft Defender for Office 365 to detect impersonation attempts.
• Require verbal or face-to-face verification for any unusual financial transaction requests.

2. Ransomware as a Service (RaaS) is a Business Model for Cybercriminals

Hackers no longer need technical expertise to launch ransomware attacks. Thanks to Ransomware-as-a-Service (RaaS), anyone with a few hundred dollars can buy a ransomware kit and deploy it against small businesses. These attacks encrypt business data, forcing SMBs to either pay a ransom (often six figures or more) or lose everything.

In 2024, a small manufacturing company in Texas was shut down for 17 days because of a ransomware attack. The ransom demand was $450,000—far less than what big corporations get hit with, but devastating to a smaller operation.

What you can do:

• Use cloud backups that are separate from your network (known as air-gapped backups). Free options include IDrive and Backblaze B2 for smaller businesses.
• Enable endpoint protection tools like Bitdefender for Business (free with Microsoft 365) to detect ransomware before it executes.
• Have an incident response plan in place—so your team knows exactly what to do if ransomware hits.

3. Third-Party Vendors Are Your Biggest Security Hole

Most SMBs rely on third-party vendors for everything from payment processing to cloud storage. The problem? Hackers know this, and they target weak links in the supply chain.

A major example: In 2024, an HVAC contractor’s hacked credentials led to a massive data breach at a national retail chain, exposing millions of customer records. The breach didn’t happen because of a failure in the retailer’s security—but because a third-party vendor’s systems were compromised.

What you can do:

• Limit vendor access to only what they need—use Okta’s free access management tool to enforce least privilege policies.
• Vet vendors before signing contracts—ask if they have SOC 2 or ISO 27001 compliance.
• Require multi-factor authentication (MFA) for all third-party accounts.

4. Cloud Security Misconfigurations Are a Leading Cause of Breaches

More SMBs than ever are running their businesses on the cloud—but many aren’t securing it properly. In 2025, misconfigured cloud storage, poor access controls, and weak passwords will continue to be the biggest cause of accidental data leaks.

A real-world case: In 2023, an unsecured AWS S3 bucket led to the exposure of over 100,000 business invoices containing financial details. The company wasn’t hacked; they simply left their cloud storage open to the public by accident.

What you can do:

• Enable MFA on all cloud services (Google Workspace, Microsoft 365, AWS, etc.).
• Use free cloud security tools like Microsoft Secure Score to identify weaknesses.
• Regularly audit user permissions—many SMBs forget to revoke access when employees leave.

5. Employees Are Still the #1 Cause of Data Breaches

Over 85% of data breaches involve human error. Whether it’s an employee clicking on a phishing email, using weak passwords, or downloading malware, your team is your biggest cybersecurity risk.

A real-world case: In 2024, an accounting firm in Florida suffered a breach when an intern accidentally clicked a fake DocuSign link, allowing hackers to access client financial records.

What you can do:

• Use a password manager like Bitwarden (which has a free business plan).
• Train employees on cybersecurity awareness every quarter. Use free resources from CISA or KnowBe4’s phishing tests.
• Monitor for compromised passwords using Have I Been Pwned?

Final Thoughts

Cybercriminals know that small and medium-sized businesses often lack the resources for robust cybersecurity programs. That’s why they’re targeting you. But the good news? There are free and low-cost solutions that can dramatically reduce your risk.

At NexSecure Solutions, we specialize in helping SMBs build strong security programs without breaking the bank. Whether it’s ransomware protection, cloud security, or employee training, we’re here to help you stay ahead of the threats.

Book a free cybersecurity consultation today—because staying unprotected in 2025 isn’t an option.