Small Businesses are now Prime Targets for Cyberattacks

Cybercrime has moved from a background threat to a constant risk for small and medium-size businesses. According to insights from The Wall Street Journal’s “What’s News Sunday” podcast, published Aug. 10, 2025, nearly half of SMB owners worldwide have experienced a cyberattack. Almost one in five had to close their business or file for bankruptcy afterward.

Automation and AI lower the barrier for hackers

Gone are the days when a cyberattack required weeks of planning and deep technical skill. Today, attackers can buy or rent tools on the dark web to launch tailored phishing emails, create custom malware, and scan thousands of systems for weaknesses — all with minimal know-how. This scale means more spray and pray attacks, and small businesses are increasingly caught in the net.

Why hackers like smaller targets

Hackers still pursue large enterprises, but improved defenses at big companies have pushed criminals downstream. Many small businesses:

• Have fewer cybersecurity protections
• Lack dedicated incident response teams
• Hold valuable data, often linked to larger clients or supply chains

Healthcare, retail and professional services firms are particularly attractive. In sectors such as healthcare, downtime directly affects operations, which can make victims more likely to pay ransoms quickly.

The high cost of a breach

The damage extends beyond the ransom itself. SMBs face:

• Breach notification costs across multiple jurisdictions
• Reputational harm and lost client trust
• Potential legal action for late or inadequate reporting

What small businesses can do

The basics still matter:

• Regularly update software and patch vulnerabilities
• Require multifactor authentication
• Train employees to spot phishing and voice-based scams
• Back up data frequently and store copies offline
• Have a clear incident response plan

Managed security service providers, or MSSPs, can help bridge the expertise gap by offering enterprise-grade protections — like 24/7 monitoring and rapid incident response — at a scale and price SMBs can manage.

Bottom line
Small businesses make up more than 40% of the U.S. economy. Protecting them from cybercrime is not just a company issue — it is an economic one. As highlighted in the WSJ “What’s News Sunday” episode, the tools to defend against these attacks are not always costly, but ignoring them can be devastating. By investing in security fundamentals and, when possible, partnering with trusted providers, owners can reduce risk and keep operations running even in the face of growing threats.