43% of cyberattacks target small businesses, and 60% of small businesses close within 6 months of a breach. This guide covers essential cybersecurity measures every small business needs.
Cybersecurity Essentials 2025
- Top threats: Phishing, ransomware, business email compromise
- Average breach cost: $120,000+ for small businesses
- Employee error: Causes 95% of breaches
- Must-haves: Antivirus, backups, 2FA, training
- Investment: $500-5,000/year for basic protection
Top Cyber Threats to Small Business
PHISHING
Phishing Attacks
- What: Fake emails/websites tricking users into revealing credentials
- Risk: 91% of attacks start with phishing email
- Prevention: Email filtering, employee training, verify sender
- Example: Fake invoice email with malicious attachment
RANSOMWARE
Ransomware
- What: Malware that encrypts files, demands payment
- Risk: Average ransom $200,000+, many pay but don't recover
- Prevention: Backups, patching, email filtering, endpoint protection
- Response: Never pay ransom, restore from backup
BEC
Business Email Compromise
- What: Impersonating executives to authorize wire transfers
- Risk: $2.4 billion lost annually
- Prevention: Verify requests by phone, dual approval for transfers
- Example: "CEO" urgently requests wire transfer to new vendor
Essential Security Measures
| Priority | Measure | Cost | Difficulty |
|---|---|---|---|
| 1 | Strong passwords + 2FA | Free | Easy |
| 2 | Regular backups (3-2-1) | $50-200/mo | Easy |
| 3 | Antivirus/endpoint protection | $30-100/device/yr | Easy |
| 4 | Employee security training | $20-100/user/yr | Medium |
| 5 | Email security filtering | $3-10/user/mo | Medium |
| 6 | Firewall/network security | $200-1,000/yr | Medium |
| 7 | Cyber insurance | $500-5,000/yr | Easy |
Security Tools for Small Business
Endpoint Protection
- Microsoft Defender for Business: $3/user/month
- Bitdefender GravityZone: $77/year for 3 devices
- Malwarebytes for Business: $50/device/year
- CrowdStrike Falcon Go: $60/device/year
Email Security
- Microsoft 365 Defender: Included with M365 Business Premium
- Proofpoint Essentials: $3-5/user/month
- Mimecast: $4-6/user/month
- Barracuda Email Security: $2-4/user/month
Backup Solutions
- Backblaze Business: $9/device/month
- Carbonite: $8-25/device/month
- Acronis Cyber Protect: $59/year
- Veeam: Enterprise-grade, custom pricing
Employee Security Training
Training Best Practices
- Phishing simulations: Test employees regularly
- Security awareness: Monthly micro-training
- Incident reporting: Make it easy to report suspicious activity
- Password hygiene: Password manager training
- Social engineering: Recognize manipulation tactics
Training Platforms
- KnowBe4: Most popular, $18-20/user/year
- Proofpoint Security Awareness: $15-25/user/year
- Ninjio: Video-based, engaging content
- Wizer: Free tier available
Incident Response Plan
- Identify: Detect and confirm the incident
- Contain: Isolate affected systems immediately
- Notify: Alert leadership, IT, and potentially law enforcement
- Investigate: Determine scope and root cause
- Remediate: Remove threat, patch vulnerabilities
- Recover: Restore systems from clean backups
- Review: Document lessons learned, improve defenses
Cyber Insurance
- Coverage: Breach response, legal fees, business interruption
- Cost: $500-5,000/year for small business
- Requirements: Often require basic security measures
- Providers: Hiscox, Coalition, At-Bay, Cowbell
- Tip: Get quotes from multiple providers
Compliance Considerations
- PCI DSS: Required if accepting credit cards
- HIPAA: Healthcare data requirements
- State privacy laws: CCPA (California), etc.
- Industry regulations: Finance, legal, education
- Contractual: Customer/vendor security requirements
Quick Security Checklist
- ☐ Enable 2FA on all accounts (especially email, banking)
- ☐ Use password manager (unique passwords everywhere)
- ☐ Automatic backups with offline/cloud copy
- ☐ Keep all software updated (auto-updates on)
- ☐ Antivirus/endpoint protection on all devices
- ☐ Email filtering/security
- ☐ Employee security training (at least quarterly)
- ☐ Secure Wi-Fi (WPA3, strong password, guest network)
- ☐ Physical security (locked devices, screen locks)
- ☐ Incident response plan documented