Small businesses are the backbone of the economy, fueling innovation, jobs, and community growth. But in 2025, these very same businesses are becoming prime targets for cybercriminals. Why? Because many small businesses are often under-resourced, overstretched, and overwhelmed when it comes to cybersecurity.
For many small business owners, cybersecurity feels like a far-off concern—something that only affects big corporations with millions of dollars at stake. But here’s the harsh reality: attackers know that small businesses often have fewer defenses, making them easier and more lucrative targets. A recent study revealed that over 43% of cyberattacks target small businesses, and the numbers are climbing every year.
Common Small Business Cyberattacks Target Common Small Business Vulnerabilities
If you're running or managing a small business, it's critical to understand the biggest threats you're facing. Small businesses are popular targets for cyberattacks because small businesses share common weaknesses. In 2025, these risks largely boil down to three major vulnerabilities:
Misconfigurations in services - especially in systems, applications or network components not officially onboarded by IT and security teams.
Unknown services (e.g., shadow IT or software) introduced by employees without proper oversight.
Ineffective offboarding processes, leaving old accounts active and open to hacking and/or exploitation.
Let’s break down each of these vulnerabilities, why they happen, and—most importantly—how you can protect your business.
1. Misconfigurations in Services: The Silent Cybersecurity Killer
Have you ever signed up for a service, clicked through the default settings, and moved on without a second thought? Many small business owners and employees do just that before picking and utilizing one exclusively. These small oversights can have catastrophic consequences.
Misconfigurations are when settings on a system, app, or tool are "abandoned" in a way that exposes your business to risk. For example:
Leaving sensitive cloud storage buckets open to the public.
Failing to enable two-factor authentication (2FA) on critical business apps.
Using similar, same or weak default passwords for admin accounts.
When these services are onboarded without the involvement of IT or security teams—or worse, when they're onboarded and forgotten—it creates gaps that attackers are more than happy to exploit. Cybercriminals actively scan the internet for misconfigured systems because they’re low-hanging fruit.
Real-World Example:
A marketing team at a small business might sign up for a software analytics tool to streamline reporting. Excited to get started, they bypass IT approval and launch the service with default settings. Weeks later, an attacker gains access to sensitive customer data stored in the service’s misconfigured database, exposing hundreds of customers to potential identity theft.
The Emotional Toll:
For small businesses, a breach like this isn’t just a technical issue; it’s personal. Customers lose trust, employees feel betrayed, and the business itself risks collapse under the weight of legal and financial fallout.
How to Prevent Misconfigurations:
Work with IT and security teams for every new service signup. Even if your IT team is small, nonexistent or outsourced, make sure your employees understand the prerequisites for onboarding new tools.
Conduct regular security audits. Review settings on all systems to ensure they’re secure.
Educate employees. Train your team to recognize and report misconfigurations before they turn into disasters.
2. Unknown Services: The Rise of Shadow IT
Small businesses thrive by innovation and speed. Employees often take initiative to solve problems by adopting new tools or software. While this ingenuity is a huge asset, it can also be a massive liability. When employees introduce new services without telling IT or security teams, these "unknown services" (often called shadow IT) create blind spots for your business.
Why This Happens:
Employees might think, "Why bother IT? This is just a simple tool."
Managers may prioritize speed over process, overlooking security implications.
Lack of a centralized system to track and manage tools and software.
Shadow IT is particularly dangerous because these unknown services can:
Store sensitive company data without proper encryption.
Connect to critical systems, creating pathways for attackers.
Operate with minimal security oversight.
Real-World Example:
Imagine an employee signs up for a free file-sharing app to collaborate with a remote contractor. They upload sensitive internal documents to the app, unaware it’s riddled with vulnerabilities. An attacker gains access to the app's data, compromising both your intellectual property and your reputation.
The Emotional Toll:
You built your business on trust. When customers’ private information is exposed because of an unknown tool, they’ll question whether they can rely on you. And as a business owner, you may find yourself juggling not only the technical fallout but also the emotional burden of breaking that trust.
How to Address Unknown Services:
Implement a SaaS discovery solution. Utilize digital security software with features like ours to find and manage any/all shadow IT.
Foster a culture of transparency. Encourage employees to inform IT about any new tools they’re using.
Create a simple approval process. If it’s easy for employees to request new tools, they’ll be less likely to bypass the system.
3. Ineffective Offboarding: Leaving Doors Wide Open
One of the most overlooked cybersecurity risks in small businesses is improper offboarding. When employees or consultants leave the company, their accounts often stay active—sometimes for months or even years. This gives attackers a golden opportunity to exploit these "zombie accounts."
Why This Happens:
Small businesses often use identity solutions that don’t integrate with all their tools, leaving major security gaps.
Manual offboarding processes are time-consuming and prone to error.
There’s a lack of documentation / visibility of all the accounts an employee or contractor has created, or with access to.
The Risk:
If a malicious actor or cybercriminal gains access to one of these accounts, they can:
Steal sensitive company data.
Launch ransomware attacks from within your systems.
Use the account to impersonate your business and scam customers.
Real-World Example:
A small business hires a consultant to handle social media marketing. When the consultant leaves, their access to the company’s social media scheduling tool and cloud storage isn’t revoked. Months later, the account is compromised by an attacker who uses it to distribute malware to your customers.
The Emotional Toll:
As a small business owner, you’ve worked hard to build your reputation. A breach stemming from poor offboarding doesn’t just hurt your bottom line—it’s a personal blow to everything you’ve built.
How to Secure Digital Offboarding:
Automate the process. Leverage tools that integrate with your identity solutions to automatically revoke access when employees leave.
Perform regular account audits. Ensure that only current employees and contractors have active accounts.
Establish a clear offboarding checklist. Make it easy for managers to follow a standardized process every time someone leaves.
Why These Threats Are Growing in 2025
Cybercriminals are constantly evolving their tactics, and small businesses are increasingly in their crosshairs. Here’s why these three risks are particularly pronounced in 2025:
More software, more problems. The rise of affordable / free Software as a Service (SaaS) tools makes it easier than ever for employees to adopt new services without oversight.
Hybrid work environments. As more businesses embrace remote work, the number of SaaS and accounts grows exponentially—and so does the risk of misconfiguration and shadow IT.
Resource constraints. Many small businesses don’t have dedicated IT teams, making it harder to address these vulnerabilities proactively.
A Call to Action: Protect Your Business Today!
The thought of cyberattacks can feel overwhelming, especially when you’re already wearing multiple hats as a small business owner. But remember: every step you take to secure your business is a step toward protecting your employees, your customers, and your dreams.
Here’s where to start:
Audit your systems. Identify misconfigurations and shadow IT.
Streamline offboarding. Build processes that ensure no accounts are left open when someone leaves.
Invest in security tools. Solutions like Waldo Security can help you discover, manage, and secure your SaaS ecosystem. Request a free demo!
Small businesses may be small, but our impact is huge. And with the right cybersecurity measures, you can ensure that 2025 is a year of growth and not a year of breaches.
//tldr
Cybersecurity isn’t just about protecting data; it’s about protecting the people who trust you. Your customers, employees, and partners rely on you to keep their information safe.
By addressing these three key vulnerabilities—misconfigurations due to lack of cybersecurity awareness, unknown security gaps, and poor offboarding—you can build a stronger, safer future for your business.
Stay vigilant, stay proactive, and let’s make 2025 a year where small businesses thrive, not just survive.
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