By Pete Stauffer, Account Executive, Locknet Managed IT

Many small business owners believe cybercriminals only go after large corporations with deep pockets and valuable data. It’s an understandable assumption, but unfortunately, it’s not accurate. In reality, small businesses are often more attractive targets because they typically have fewer security controls in place.

Cybercrime is no longer about breaking into systems through complex technical attacks. Today’s criminals rely on deception, impersonation, and human behavior, which means any business that uses email, online banking, or digital payment systems can be at risk regardless of size.

Why small businesses are targeted

Cybercriminals are opportunistic. They look for organizations where attacks are more likely to succeed with minimal effort. Small businesses often fit that profile for several reasons:

  • Limited or no dedicated IT or security staff
  • Fewer formal processes for approving payments or account changes
  • Employees who perform multiple roles, including financial duties
  • Less frequent cybersecurity training

Even when businesses use secure banking platforms, attackers may target employees directly through email or phone scams designed to appear legitimate.

“We don’t have much to steal.” Another risky assumption

A common misconception is that small account balances or lower transaction volumes make a business an unlikely target. However, cybercriminals don’t need large sums to profit.

Attackers may:

  • Redirect vendor or payroll payments
  • Trick employees into sending wires or ACH transfers
  • Steal business or employee identity information
  • Use compromised email accounts to target customers or partners

In some cases, attackers may deploy ransomware which is malicious software that encrypts systems and demands payment to restore access. Even small businesses with limited data can be affected if critical systems, files, or customer information become unavailable.

How attacks commonly happen

Most cyber incidents affecting small businesses don’t involve malware or system breaches. Instead, they rely on social engineering, such as:

  • Fake emails impersonating vendors requesting updated payment information
  • Messages posing as company executives asking for urgent transfers
  • Emails that closely mimic real invoices or ongoing conversations

Ransomware attacks often begin the same way with a malicious email attachment or link that appears legitimate. One click can be enough to give attackers access to a system.

Because these messages often look familiar and arrive during busy workdays, they can be difficult to spot without clear internal safeguards.

The real impact on small businesses

Even a single successful cyber incident can have lasting consequences. Beyond financial loss, businesses may experience:

  • Disrupted cash flow
  • Strained vendor or customer relationships
  • Time-consuming recovery efforts
  • Reputational damage

For many small businesses, these impacts are far more costly than the dollar amount stolen.

Practical steps every small business can take

The good news is that simple, consistent practices can make a significant difference in reducing your organization’s cyber risk:

  • Enable multi-factor authentication (MFA) for email and online banking
  • Verify payment or account changes using a second method, such as a phone call
  • Limit who can initiate or approve financial transactions
  • Encourage employees to slow down and question urgent or unusual requests
  • Regularly review bank account activity for anything out of the ordinary

Creating a culture where employees feel comfortable raising concerns is one of the most effective defenses.

How your bank helps protect your business

Banks invest heavily in security monitoring, fraud detection, and secure transaction systems. However, cybersecurity is most effective when businesses and banks work together.

Staying informed about common threats, and knowing when to contact your bank, can help prevent losses or limit their impact. If something doesn’t look right, early communication can make all the difference.

Final thoughts on small business cyber threats

Cybercriminals don’t target businesses based on size—they target them based on opportunity. By understanding the risks and taking a few proactive steps, small businesses can significantly reduce their exposure and protect what they’ve worked hard to build.