Sure, cybercriminals can pull off some pretty advanced attacks. But more often than not, it’s the simple stuff—like weak passwords, outdated software, or lack of basic security practices—that opens the door. This is especially true for small and mid-sized businesses (SMBs), where cybersecurity can sometimes take a back seat to day-to-day operations. Many small businesses allocate minimal resources to cybersecurity; 48% of Australian SMEs spend less than AUD $500 annually on cybersecurity measures.
We know small business owners are focused on growing their company, which is great! But in the process, some assume they’re too small to be on a hacker’s radar. Others think a data breach is unlikely to happen to them, or that cybersecurity is just too expensive to worry about right now. But here’s the truth: cybersecurity isn’t just a big business problem. Small businesses are actually seen as easy targets by cybercriminals. Why? Because many don’t have strong security measures in place.
In fact, a Mastercard-commissioned study found that around 309,000 Australian small businesses have already faced cybersecurity issues. Even more alarming—33% of those businesses suffered financial losses because of these incidents.
Cybersecurity doesn’t need to be expensive.
Most data breaches are the result of human error. But that is actually good news. It means that improving cyber hygiene can reduce the risk of falling victim to an attack.
Are You Making Any of These Cybersecurity Mistakes?
1. Underestimating the Threat
One of the biggest cybersecurity mistakes of SMBs is underestimating the threat landscape. Many business owners assume that their company is too small to be a target. But this is a dangerous misconception.
The 2023–2024 Annual Cyber Threat Report by the Australian Cyber Security Centre (ACSC) emphasizes that cybercriminals increasingly target small businesses, viewing them as soft targets due to limited resources and weaker defenses.
Cybercriminals often go after small businesses because they think these companies don’t have the tools or knowledge to protect themselves. Many small business owners believe they’re too small to be targeted, but that’s not true. Hackers see them as easy targets. That’s why it’s so important for every business, no matter the size, to take cybersecurity seriously and stay one step ahead.
2. Neglecting Employee Training
When was the last time you trained your team on cybersecurity? If you’re like many small business owners, it might not be high on your to-do list. It’s easy to assume your employees will just “know better” when it comes to staying safe online, but that’s a risky assumption.
The truth is, human error is one of the biggest causes of data breaches. A single click on a phishing email or a careless download can open the door to serious trouble.
That’s why regular cybersecurity training is so important. It helps your team:
- Spot phishing scams before they click
- Understand why strong passwords matter
- Recognize sneaky social engineering tricks used by hackers
3. Using Weak Passwords
Let’s talk passwords. If your team is still using “123456” or “password1,” you’re not alone—but you are at risk.
Weak and reused passwords are one of the most common ways hackers break into small business systems. In fact, people reuse passwords 64% of the time, which means if one account gets hacked, others could follow.
Here’s how to tighten things up:
- Encourage strong, unique passwords for every account
- Use a password manager to keep things simple
- Turn on multi-factor authentication (MFA) wherever possible—it adds an extra layer of protection
Strong passwords and MFA are simple steps that can make a big difference.
4. Ignoring Software Updates
We get it. Those update reminders always seem to pop up at the worst time. But ignoring them can leave your business exposed.
Cybercriminals love outdated software because it often contains known security flaws they can easily exploit. When you delay updates, you’re basically giving hackers a head start.
To stay protected, make sure you regularly update:
- Operating systems (Windows, macOS, etc.)
- Web browsers
- Antivirus and anti-malware tools
- Any business-critical apps or platforms
5. Lacking a Data Backup Plan
Many small businesses don’t have a solid data backup and recovery plan. Some assume data loss won’t happen to them, until it does.
Whether it’s a cyberattack, hardware failure, or simple human error, losing important data can be devastating. That’s why having a reliable backup strategy is a must.
Here’s what you should do:
- Back up your critical data regularly (daily or weekly, depending on your needs)
- Use both cloud and physical backups for extra security
- Test your backups to make sure they actually work when you need them
6. No Formal Security Policies
Many small businesses run without clear cybersecurity policies—and that’s a problem. Without written guidelines, employees may not know how to handle sensitive data, use company devices safely, or respond if something goes wrong.
Creating formal security policies doesn’t have to be complicated, but it does need to be done. These policies should be shared with your team and cover key areas like:
- Password management
- Safe data handling
- How to report security incidents
- Remote work best practices
- Mobile and device security
Overlooking Mobile Security? Hackers Won’t
With more employees using smartphones and tablets for work, mobile security is more important than ever. But many small businesses still overlook it.
If your team uses mobile devices to access company data, it’s time to put protections in place. A Mobile Device Management (MDM) solution can help enforce security rules on both company-owned and personal devices used for work.
8. Not Watching Your Network? You Might Miss the Signs
Small businesses often don’t have dedicated IT staff to monitor their networks. That means suspicious activity can go unnoticed, until it’s too late.
The good news? You don’t need a full IT department to stay protected. You can:
- Install network monitoring tools to keep an eye on things
- Or outsource monitoring to a trusted provider
Either way, having someone (or something) watching your network helps you catch threats early and respond quickly.
9. No Incident Response Plan? That’s a Risky Gamble
Imagine this: your business gets hit by a cyberattack. What do you do first? Who do you call? If you don’t have a plan, panic can take over—and that’s when mistakes happen.
That’s why every small business needs an incident response plan. It doesn’t have to be complicated, but it should clearly outline:
- What steps to take during a security incident
- Who’s responsible for what
- How to isolate affected systems
- How to communicate with your team, customers, or even the public
10. Thinking They Don’t Need Managed IT Services
Cyber threats are constantly evolving, and keeping up can be tough, especially without a dedicated IT team. Many small businesses assume managed IT services are only for big companies with big budgets. But that’s not the case anymore.
Managed service providers (MSPs) offer flexible packages designed specifically for small and mid-sized businesses. They can:
- Monitor your systems 24/7
- Keep your software up to date
- Help prevent cyberattacks before they happen
- Save you money by optimizing your tech setup
Managed services come in all package sizes. This includes those designed for SMB budgets. A managed service provider (MSP) can keep your business safe from cyberattacks. As well as save you money at the same time by optimizing your IT.
Learn More About Managed IT Services
Don’t wait for a cyberattack to realize the value of expert support. Managed IT services are more affordable than you might think, and they could be the key to protecting your business and your peace of mind.
