In recent years, the growing wave of cyber attacks has left companies of all sizes and sectors on alert. However, small and medium-sized businesses (SMEs) have been especially vulnerable, facing a disproportionate amount of attacks. Thus, the consequences of these attacks can be devastating, affecting not only operations, but also leading many companies to close their doors. In 2023, the Check Point Software Technologies report revealed a 38% global increase in the number of attacks compared to the previous year.
There are many factors that contribute to the vulnerability of SMEs , such as a lack of adequate resources and knowledge. Managers of these companies often believe that, because they are smaller, they are not attractive targets for cybercriminals , a perception that puts them in a position of great risk.
Given this scenario, it is essential that SMEs understand the seriousness and great impact of cyber threats and adopt measures to protect themselves. This article explores the impact of cyber attacks, the reasons for vulnerability and the best actions to strengthen digital defense.
Increase in cyber attacks on SMEs
Cyber attacks have hit SMEs hard, causing impacts that go far beyond financial loss. The interruption of activities is one of the main consequences, as many of these companies depend on digital systems to continue functioning. In other words, an attack aimed at these systems can lead to complete paralysis of the organization, for days or even weeks. According to Kaspersky , over the past 12 months, SMEs in Brazil have faced more than 192 million cyberattack attempts, resulting in an average of 365 attacks per minute.
In recent years, there has been a substantial increase in the number of cyberattacks targeting small and medium-sized businesses. This is partly due to the fact that digital criminals are increasingly sophisticated and use smarter technologies to identify and exploit vulnerabilities in these companies' networks, such as attack automation, artificial intelligence to generate malicious content and deepfakes.
Furthermore, the COVID-19 pandemic has accelerated the digitalization of several industries and companies, increasing the attack surface. With the increase in remote work and the migration of systems to the cloud environment, SMEs have become even more exposed to these attacks . Without a quality infrastructure to support this transition, many of these companies ended up becoming easier targets for cybercriminals.
Thus, the current scenario shows that cyber attacks are not just a problem for large companies. With the increasing use of technologies, SMEs must recognize that they are priority targets for cybercriminals and must invest in robust defenses to avoid becoming future victims.
Definition of Cyber Attacks
Cyberattacks are malicious attempts to access, alter, or corrupt confidential company or user information. These actions are carried out by cybercriminals with the aim of diverting valuable information, causing system interruptions and even extorting money from victims. In other words, these attacks can be implemented in different ways, from direct invasions to the use of malicious software that infiltrates the system in a covert way.
Simply put, cyber attacks exploit technological or human vulnerabilities to achieve their objectives. The lack of software updates, poorly trained employees or the use of weak passwords are loopholes that cybercriminals use to invade business networks and cause countless losses.
Due to more limited infrastructure, small and medium-sized businesses are especially vulnerable targets for cyberattacks . Therefore, regardless of the origin of the attack, the impact can be devastating for companies that are not prepared to deal with these risks.
Examples of different types of attacks
Cyberattacks can vary in complexity and objective. One of the most common types of attacks is phishing , where cybercriminals send fake emails with malicious links or attachments. The goal is to engage victims and get them to provide confidential information.
Another very common example is ransomware , one of the biggest threats for SMEs. In this type of attack, cybercriminals block access to the company's systems and demand the payment of a ransom to release the data. The financial impact of these attacks can be catastrophic, leaving many companies unable to pay or recover their data. Recent research has particularly highlighted ransomware attacks. According to data from the Cybersecurity Ventures Report , in 2023 there was a projected 25% increase in attacks compared to 2022.
Denial of service attacks (DDoS) , in turn, are approaches implemented to overload the company's servers, causing interruptions in operations. This process can lead to the loss of customers, damage to reputation and, in some cases, result in legal penalties, especially if the company is unable to guarantee the continuity of its service.
Recent statistics and data
Considering the great impact of these attacks on companies of different sizes and segments, researchers have carried out many investigations to assess the extent of the problem. According to the Sophos report , more than three-quarters of cyber incidents targeted small and medium-sized businesses in 2023, with ransomware the most widely used approach.
LockBit criminal group was responsible for the largest number of ransomware incidents aimed at small and medium-sized companies, with 27.59% of approaches. The Sophos report also highlighted that there has been a major evolution in the tactics used by ransomware operators, such as the increased use of remote encryption , which refers to the use of cryptographic techniques to protect information that is being stored or transmitted outside of the physical location where were originally generated.
According to data collected by Kaspersky , between October 2022 and October 2023, there were 192 million cyberattack attempts blocked against small and medium-sized businesses in Brazil, with 526 blocks carried out per day.
The higher incidence of cyber attacks against small and medium-sized companies, compared to larger companies, is due to the perception that they have weaker defenses . Even with a smaller volume of data, cybercriminals know that the security infrastructure of SMEs is usually inferior, making it easier to carry out attacks. In many cases, large companies have dedicated teams for security, while SMEs implement simpler solutions.
The role of governance and compliance
Governance and compliance with current cybersecurity legislation and regulations are essential to protect SMEs. There are specific regulations that companies must follow to ensure data protection and customer privacy, as is the case with the General Protection Law of Data (LGPD) .
Being compliant not only helps you avoid sanctions and fines, it also strengthens your organization's security posture. Furthermore, cybersecurity governance involves developing a clear structure of responsibilities and processes within the company. Defining roles for security management, implementing policies and carrying out regular audits are practices to ensure the correct application of security measures.
In the case of SMEs, compliance with regulations, such as LGPD and GDPR , is essential not only to avoid penalties, but also to strengthen the trust of consumers and business partners. Adherence to these standards demonstrates a commitment to information security and privacy.
Future Trends in Cybersecurity for SMBs
As technology continues to evolve, cybersecurity threats and solutions do as well. An emerging trend is the use of Artificial Intelligence and machine learning to contribute to detecting and responding to threats more accurately and efficiently. These technologies have the potential to bring significant improvements to SMEs' security strategy, helping these companies identify attacks more effectively.
Another trend is the importance of security in the remote work environment . With the increased implementation of this type of work, it is crucial that SMEs adopt more specific security measures to protect information and networks of employees who work outside the company environment. This includes the use of VPNs , secure collaboration tools, and stricter remote access policies.
Why are SMEs more vulnerable?
As we said previously, there is a wide perception that small and medium-sized companies are more vulnerable to cyber attacks. This perception is quite realistic and based on the fact that there is less investment in security resources and less concern about implementing more robust measures.
To better understand how this impact is related to factors inherent to SMEs, see below what are the main causes of vulnerabilities:
Lack of resources and knowledge
One of the main reasons why SMEs are more vulnerable to cyber attacks is the lack of resources to invest in more robust cybersecurity solutions. Large corporations have larger budgets to implement sophisticated and efficient tools, in addition to hiring experts and carrying out regular audits. On the other hand, small and medium-sized companies face financial limitations and need to prioritize their investments.
Furthermore, a lack of specialized knowledge is also a factor that puts SMEs at greater risk. Many companies end up underestimating the potential of attacks, believing that they are not targets of cybercriminals, making it easier for these agents to exploit vulnerabilities. It is important to remember that many SMEs do not implement even the most basic security measures, such as carrying out regular backups , firewalls and multi-factor authentication . This combination of limitations makes SMBs especially susceptible to attacks that could be easily prevented.
Attractive targets for attackers
For cybercriminals, SMEs are seen as easy and profitable targets . They know that these companies do not tend to invest in the same defenses as large corporations and, for this reason, they focus their efforts on exploiting these vulnerabilities. This makes SMEs more frequent targets, as cybercriminals encounter less resistance.
Many successful attacks against SMEs involve relatively simple practices by cybercriminals, such as using a strategy to steal credentials or applying ransomware to lock systems and demand a ransom payment. Despite seeming simple, these attacks can be devastating for small and medium-sized businesses, as they go unnoticed until the impact has already caused damage.
Successful attacks against small and medium-sized businesses often result in these organizations paying large amounts of ransom to regain access to their systems. According to the IBM Security Cost of a Data Breach Report 2024 , the global average cost of a data breach is approximately $4.45 million for businesses.
The importance of education and training
Employee education and training are fundamental processes to increase protection against cyber attacks. Many successful attacks occur due to human error, such as opening malicious links or using very weak passwords. Empowering employees to recognize signs of phishing and other threats can help significantly reduce the risk of security compromise.
Implementing a cybersecurity culture within the company is crucial to increasing protection. The moment all employees understand the importance of cybersecurity and implement more efficient practices, the better the company's resistance to attacks will be. Investing in cyber education can also include hiring specialized consultants to help develop personalized training.
This approach can be particularly useful for SMEs that need to more deeply understand the specific threats that could affect their industries and implement best practices to combat them.
Challenges of implementing security measures
Implementing effective security measures presents a considerable challenge for small and medium-sized businesses (SMBs), which often face a number of obstacles when trying to protect their systems and data. We can classify these challenges into several main areas:
1. Lack of specialized resources
One of the main challenges is the lack of teams dedicated exclusively to Information Technology . Many SMEs do not have specialized cybersecurity professionals, which can make it difficult to effectively implement and manage protective measures, often meaning that cybersecurity can be neglected or inadequately addressed, with potentially serious consequences for the company. Work overload and lack of specialized knowledge can cause gaps in protection , exposing the company to unnecessary risks.
2. Budget constraints
Another significant difficulty is budgetary limitations. SMBs often operate on tighter budgets, which can restrict their options for adopting sophisticated security solutions. Investing in cutting-edge technology can be seen as a luxury rather than a necessity, leading some companies to opt for cheaper solutions or even delay implementing security measures, resulting in inadequate protection and increasing the risk of cyber attacks. .
3. Complexity of security solutions
In addition to resource and budget issues, the complexity of security solutions available on the market can be an extra challenge for an SMB's security strategy. Many advanced solutions require specialized technical knowledge to be correctly configured and maintained , and for an SMB without a dedicated IT team, understanding and implementing these solutions can be a complex task.
4. Constantly evolving threats
Cyber threats are constantly evolving, with new types of attacks and vulnerabilities emerging regularly and making companies from different segments victims. To maintain security, SMEs need to keep up with these changes and keep their protection measures updated on an ongoing basis. This requires constant vigilance and adapting to new threats, which can be challenging for companies with limited resources and no dedicated security team.
5. Need for training and awareness
In addition to technical and financial issues, employee awareness and training are crucial strategies for cybersecurity. Many attacks are successful due to human error, such as clicking malicious links or using weak passwords. To combat these risks, it is necessary to implement training and awareness programs to educate employees about security best practices. However, for SMEs, this can mean an additional investment of time and, importantly, resources.
Measures to protect SMEs from cyber attacks
To strengthen the security strategy and help prevent most cyber attacks more efficiently and intelligently, there are some strategies that can help these companies. Implementing differentiated solutions and ensuring a culture focused on protecting information is an approach that can make all the difference for these companies.
Cyber defense technologies
There are several more affordable technology solutions that can help SMEs protect themselves against cyberattacks. Tools like firewalls , antiviruses , and intrusion detection systems are more affordable than ever and can help these companies implement an extra layer of protection against unauthorized access.
Implementing multi-factor authentication is also a key approach for small and medium-sized businesses. This technology adds a layer of security and ensures that even when someone compromises credentials, the cybercriminal still needs extra information to access the system.
Combining implementing more robust technology solutions with adequate training can help significantly reduce the risk of successful attacks. It is important to see cybersecurity as an essential investment to maintain business continuity, as well as any other investment within the company.
Internal policies and procedures
Implementing a clear and transparent security policy is essential to protect small and medium-sized businesses from cyber attacks. These policies should include all rules regarding the use of strong passwords, the importance and frequency of software updates, and what procedures should be implemented in the event of suspicious activity.
Additionally, they also need to develop incident response procedures . This protocol includes creating an action plan to deal with cyberattacks, ensuring everyone knows how to act quickly to mitigate damage and restore operations as soon as possible. These preventive and reactive measures are crucial to ensure that, if an attack occurs, everyone is prepared to deal with this situation in the best possible way, preventing the company from suffering even greater losses.
Monitoring and auditing
Continuous monitoring is essential for effective protection against cyber threats, as it allows for early detection of suspicious activities and potential security incidents. Implementing real-time monitoring tools can help identify anomalous patterns and signs of compromise before they cause significant damage.
Monitoring solutions , such as security information and event management (SIEM) systems, can aggregate information from different sources, offering a network activities Effective monitoring helps ensure that company security does not depend solely on reactive responses, but on constant, proactive vigilance.
In addition to monitoring the digital environment in real time, it is essential to carry out periodic security audits to assess the effectiveness of existing protection measures. Audits help identify vulnerabilities, security policy gaps, and areas in need of improvement. During an audit, experts review a company's system configurations , current security policies, and operational practices to ensure they comply with security standards.
Case Study: SMEs affected by cyber attacks
Nowadays, SMEs are increasingly frequent targets of cyber attacks, due to the increasing sophistication and persistence of online threats. While these companies often don't have the visibility or resources that large corporations do, their vulnerability can have equally devastating consequences.
Through the analysis of real cases, we seek to better understand the common vulnerabilities that affect SMEs and identify best practices and defense strategies that can be applied to strengthen the cybersecurity of these organizations.
Stories of SMEs victims of attacks
There are countless reports of small and medium-sized businesses that have fallen victim to cyber attacks, often with devastating consequences. These examples highlight the great importance of protecting SMEs against cyber attacks. It is essential to understand that the consequences go far beyond immediate financial losses, also causing impacts on the company's reputation and customer trust , which can be fatal for smaller businesses.
In August 2024, Jacarezinho City Hall suffered a substantial cyber attack, resulting in the encryption of essential files and the interruption of several services. This ransomware attack involved encrypting data and demanding a payment in cryptocurrency to release the information.
Type of attack
The incident was characterized by a ransomware attack , which compromised the city's information technology systems. Attackers encrypted critical data and demanded ransom payments, which directly affected the operation of public services and the ability to perform essential administrative tasks.
Immediate consequences
As a result of the approach, several city hall online services were temporarily suspended, creating difficulties for the population who needed to access documents and services. The interruption affected the efficiency of processes and the availability of information for citizens.
Incident response
After the attack, the city hall quickly mobilized teams specializing in cybersecurity to deal with the situation. They initiated an emergency response to isolate the systems compromised during the attack and begin data recovery. The administration has also notified the relevant authorities and is collaborating with security agencies to investigate the origin and motives of the attack.
Prevention measures and future actions
The incident highlighted the importance of strengthening digital security within public administration. The city is now focused on updating its security practices, including implementing more robust protocols, conducting regular training for employees and investing in new cyber protection technologies.
Learning for other organizations
This event serves as a warning to other organizations and companies about the need to have a robust and consolidated cybersecurity strategy. Regular backups, conducting vulnerability testing, and ongoing cybersecurity education are best practices to reduce the chance of future attacks.
Recovery and resilience
After a cyber attack, many SMEs face a long road to recovery. However, some companies are adopting effective strategies to overcome this crisis and become more resilient, such as implementing regular backups , hiring cybersecurity and training employees.
Many companies also make important changes to their internal policies, ensuring the implementation of more efficient preventive measures to avoid the incidence of new attacks. These steps are critical to ensuring that these companies are able to recover and prevent future attacks.
In short, small and medium-sized companies are becoming increasingly frequent targets of cyber attacks due to their vulnerability and lack of preparation. Therefore, it is essential that companies invest in security solutions, covering both organizational culture and technologies necessary to protect their operations and information. To ensure business continuity, it is essential that companies remain aware of current threats and are prepared to respond to incidents quickly and effectively.
To strengthen your company's cybersecurity and protect your data, count on Lumiun. Lumiun offers advanced security solutions that help identify and mitigate threats, ensuring robust and effective protection for your business. Don't leave your company vulnerable to cyberattacks — contact Lumiun and find out how we can help keep your operations safe and resilient.
