5 Cybersecurity Mistakes We See Local Businesses Make Every Week

Many small businesses still believe cyberattacks are rare events that happen to large corporations with deep pockets and complex systems. The reality is very different. In 2024 alone, the FBI recorded $16.6 billion in reported internet crime losses, a new record driven largely by phishing and business email compromise attacks that disproportionately affect smaller organizations ². When breaches do occur, they are rarely the result of sophisticated hacking techniques and more often the result of basic security gaps that go unaddressed week after week.

The Cost of Common Cybersecurity Gaps

Cybersecurity incidents are no longer abstract technical problems. They translate directly into downtime, financial loss, and long-term business disruption. According to the Verizon 2024 Data Breach Investigations Report, the human element was involved in 68 percent of breaches analyzed, highlighting how often attackers succeed by exploiting everyday behavior rather than technology flaws alone ¹. This pattern shows up repeatedly in small and mid-sized businesses that rely heavily on email, remote access, and cloud services to operate efficiently.

The human element was involved in the majority of breaches analyzed. ¹

Understanding where these risks come from is the first step toward reducing them. The following five mistakes represent the most common cybersecurity failures we see local businesses make, and they are all preventable with the right controls and planning.

Skipping Multi-Factor Authentication and Strong Access Controls

Passwords alone are no longer sufficient to protect business email accounts, remote access tools, or cloud platforms. Many small businesses still rely on single-factor authentication despite clear evidence that this dramatically increases the likelihood of account compromise. Microsoft reports that more than 99.9 percent of compromised accounts did not have multi-factor authentication enabled ³. This statistic underscores how effective MFA is at stopping credential-based attacks before they escalate.

Credential theft remains one of the most reliable intrusion paths for attackers, particularly through phishing campaigns designed to trick users into handing over login information. When MFA is not in place, a single stolen password can give an attacker access to email inboxes, internal files, and even financial systems. This makes identity protection one of the fastest ways to reduce risk across an entire organization. Services that focus on identity security and access control, such as those included in comprehensive cyber security offerings, directly address this vulnerability.

Falling Behind on Patching and Updates

Outdated systems remain a major entry point for cybercriminals. Exploitation of unpatched vulnerabilities as an initial attack vector increased by 180 percent year over year, according to Verizon ¹. Internet-facing systems like VPNs, firewalls, and web applications are particularly attractive targets when updates are delayed or skipped entirely.

Small businesses often postpone patching because of concerns about downtime or limited IT staff availability. Unfortunately, attackers are well aware of these delays and actively scan for known vulnerabilities that have not yet been addressed. Once inside, they can move laterally through the network or deploy ransomware. Ongoing monitoring and patch management, typically included in managed IT services, help close this gap by ensuring updates are applied consistently without disrupting daily operations.

Assuming Backups Alone Are Enough

Having backups is essential, but assuming that backups alone guarantee safety is a costly mistake. Ransomware is present in 32 percent of breaches and impacts 92 percent of industries analyzed, making it one of the most common and damaging threats businesses face ¹. Attackers increasingly target backup systems first, attempting to delete or encrypt them before launching the primary attack.

Backups that are not isolated from the main network or regularly tested often fail when they are needed most. CISA emphasizes that backup testing is a core ransomware mitigation strategy, not an optional best practice ⁵. Effective backup strategies include offline or immutable copies and routine testing to confirm data can be restored quickly. Cyber security programs that focus on resilience rather than prevention alone help ensure backups actually function during an incident.

Ignoring Phishing and Business Email Compromise Risks

Phishing remains the most reported cybercrime, with more than 193,000 complaints filed in 2024 ². Business Email Compromise is even more damaging financially, resulting in $2.77 billion in reported losses during the same year ². These attacks often succeed because they look legitimate and exploit trust rather than technical weaknesses.

Many small businesses lack formal training or clear procedures for reporting suspicious emails. Without awareness training, employees may not recognize warning signs or may hesitate to question messages that appear urgent or authoritative. Over time, this creates an environment where a single convincing email can trigger wire fraud, data theft, or malware installation. Addressing phishing risk requires both technical controls and consistent user education, areas commonly covered through structured IT services.

Operating Without an Incident Response Plan

Even with strong preventive measures, no organization can eliminate risk entirely. Yet many small businesses operate without a documented incident response or recovery plan. CISA notes that lack of preparation increases downtime and financial impact when incidents occur ⁶. Without clear roles and procedures, businesses are forced to make critical decisions under pressure, often delaying containment and recovery.

NIST frames incident readiness as a foundational security practice for small businesses, emphasizing the importance of knowing who to contact, what systems to isolate, and how to communicate during an event ⁷. An incident response plan does not need to be complex, but it should be tested and understood before it is needed. Proactive planning reduces confusion and helps businesses recover faster when disruptions occur.

Moving Toward Proactive Cybersecurity

These five mistakes are not signs of negligence. They are the result of limited time, limited resources, and outdated assumptions about how attacks happen. The data makes it clear that basic controls like MFA, patch management, tested backups, phishing awareness, and incident planning significantly reduce risk when implemented consistently ^{1, 3}.

For many small businesses, addressing these gaps requires outside expertise and ongoing support rather than one-time fixes. Proactive cybersecurity is about building resilience over time, not reacting after damage is done. Businesses looking to strengthen their defenses can explore managed IT and cyber security solutions or reach out directly through the contact page to start a conversation about practical next steps.

Sources

2024 Data Breach Investigations Report – Verizon, May 2024 https://www.verizon.com/business/resources/reports/2024-dbir-data-breach-investigations-report.pdf
2024 IC3 Annual Report – FBI Internet Crime Complaint Center, December 2024 https://www.ic3.gov/AnnualReport/Reports/2024_IC3Report.pdf
One Simple Action You Can Take to Prevent 99.9 Percent of Account Attacks – Microsoft Security Blog, August 2019 https://www.microsoft.com/security/blog/2019/08/20/one-simple-action-you-can-take-to-prevent-99-9-percent-of-account-attacks/
Stop Ransomware Guide – CISA https://www.cisa.gov/resources-tools/resources/stopransomware-guide
#StopRansomware Guide (PDF) – CISA, May 2023 https://media.defense.gov/2023/May/23/2003227891/-1/-1/0/CSI-StopRansomware-Guide.PDF
Cyber Guidance for Small Businesses – CISA https://www.cisa.gov/cyber-guidance-small-businesses
Small Business Information Security: The Fundamentals – NIST IR 7621 Rev. 1 https://csrc.nist.gov/publications/detail/nistir/7621/rev-1/final